In Commonwealth-regulated Residential Aged Care in Australia, some aged care facilities have special approval to offer residents “Extra Service” status. If you choose to live in an Extra Service room or wing, you may be required to pay an Extra Service Fee (ESF) on top of your other standard fees and charges.
The Extra Service Fee covers a higher standard of hotel-type services — think upgraded accommodation, higher-quality meals, or enhanced lifestyle extras. It does not relate to clinical or personal care — those are covered by the Basic Daily Care Fee and any Means Tested Care Fee you may pay.
Many older Australians and their families want more choice and flexibility in residential care. The Extra Service option allows providers to offer higher standards of hotel-type services for those who want (and can afford) them. This is similar to paying for a premium room in a hotel — you pay extra for a higher level of comfort, amenities and non-care services.
It’s important to know that Extra Service Fees are entirely optional. You do not have to choose an Extra Service room if you don’t want to or can’t afford to.
Only residents who choose to live in an Extra Service room or wing pay the Extra Service Fee. If you choose a standard room that doesn’t have Extra Service status, you won’t pay an ESF.
Whether or not you pay the ESF does not affect your eligibility for standard aged care services, which remain regulated and subsidised by the Australian Government for everyone who qualifies.
To charge an Extra Service Fee, an aged care provider must be formally approved by the Australian Government to offer Extra Service status for specific rooms. This status is granted through an Extra Service Approval process.
Once approved, the provider must:
If a facility has multiple Extra Service rooms, they must maintain the approved standards for each one. This ensures consistency and fairness for residents paying the additional fee.
Each Extra Service Agreement may vary, but typical extras can include:
However, the Extra Service Fee cannot be used to charge for your personal or clinical care needs — those are regulated under the Aged Care Act and covered by other fees. Always check your Resident Agreement to confirm exactly what the ESF includes.
There is no single standard amount. Each provider sets its own Extra Service Fee for each approved Extra Service room or wing. Fees vary widely depending on the standard of services offered, location, and the market for premium aged care in your area.
Providers must:
Providers cannot charge Extra Service Fees for standard services that should be included in the Basic Daily Care Fee or covered by your Means Tested Care Fee — doing so would be illegal under the Aged Care Act.
Let’s say Jane chooses an Extra Service room at an inner-city aged care home. Her total fees might include:
Jane’s total daily costs reflect all of these combined, so she needs to plan her budget accordingly. If she moves out, the ESF stops immediately — unlike the RAD, which is refundable minus agreed deductions.
No. The Extra Service Fee is a daily payment for the enhanced services you receive while living in the Extra Service room. It is not refundable when you leave or pass away. Only the Accommodation Payment (if you paid a lump sum RAD) is refundable.
Yes — providers can increase ESFs over time, for example, due to rising costs or inflation. However:
No — it’s always your choice. Some aged care homes only offer Extra Service rooms, but many have both Extra Service and standard rooms. You can compare your options to decide if paying the additional ESF fits your lifestyle and budget.
If you don’t feel you need the added hotel-style extras, you can choose a standard room with no ESF and still receive the same quality of personal and clinical care.
If you can’t afford or no longer want to pay the Extra Service Fee, talk to your provider. Depending on room availability and your Resident Agreement, you may be able to move to a standard room without the Extra Service status.
However, not all providers will have standard rooms available immediately. It’s a good idea to clarify these options before you sign your contract.
As a resident in a Commonwealth-regulated aged care facility, you have the right to:
Here are some questions to consider:
It’s always wise to compare several homes and their fee structures. It is easy to find similar quality of life in a well-run standard facility that doesn’t charge an ESF.
Choosing the right residential aged care option can be complex. Here’s where to start:
Residential aged care can be a big step. Taking time to understand your options, fees, and rights will help you feel confident and comfortable in your new home.