Aged care in Australia, whether delivered at home or in a residential setting, comes with a range of fees.
These fees can include:
If you receive the Age Pension, it plays a key role in determining what you’ll need to pay for aged care. That’s because the Age Pension counts as assessable income in the means test. Here’s how that works:
In short, the higher your income and assets, the more you may be asked to contribute toward your care costs. Conversely, those on a full Age Pension with minimal other assets may pay very little.
Let’s take a closer look at how costs work when you’re entering a residential aged care facility. When moving into care, you’ll typically be asked to pay:
Basic Daily Fee
Set at 85% of the single basic Age Pension rate. This means if your pension increases, so will your daily fee. As of 20 March 2026, this fee is $66.80 per day.
Means-Tested Care Fee
Calculated by Centrelink based on your Age Pension and other income/assets. This fee is capped annually and over your lifetime.
Accommodation Payment (RAD/DAP)
If your assets exceed a certain threshold, you may be asked to make an accommodation contribution. You can pay this as a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a mix of both. The amount depends on the facility and your means test.
Importantly, if you’re on a full Age Pension and have assets below the relevant thresholds, the government may cover some or all of your accommodation costs.
For those staying at home and receiving services through a Home Care Package, fees work a little differently. The Age Pension is still assessed as income, and it may affect the following charges:
Basic Daily Fee
This is an optional fee and is currently set at up to $12.79 per day (as of 2025). Some providers waive it depending on circumstances.
Income-Tested Care Fee
This fee is means-tested and applies on top of the basic fee. Age Pension recipients with no additional income may pay nothing. However, part-pensioners or those with additional income might pay more. It is capped annually and over your lifetime.
To be assessed for your contributions, you need to complete one of the following forms depending on your pension status:
The assessment generally takes around 3 to 4 weeks, and it’s best to submit it as early as possible to avoid delays in admission or confusion about fees.
Full Age Pension, Low Assets
Mary, aged 87, is not a home owner, has been renting a family home, has no super, owns minimal personal assets, and is on a full Age Pension. She enters residential care and pays only the basic daily fee. The government subsidises her accommodation and care costs.
Part Pension, Family Home, Savings
James is on a part Age Pension and owns his home. After entering care, his home is assessible, but his savings mean he pays a partial means-tested care fee and a negotiated accommodation payment.
Centrelink reassesses your fees periodically, especially if your income or assets change. For example, if you sell your home, downsize, or your pension status changes, your fees may be recalculated. Fees can also change due to indexation (usually in March and September for the Age Pension and quarterly for accommodation thresholds).