Hotelling Contribution

Understanding the Hotelling Contribition

The government provides aged care homes with a payment called the hotelling supplement. This helps cover the cost of everyday living services, such as meals, cleaning, laundry, and utilities. It is paid to the provider to top up the basic daily fee.

The hotelling supplement is means tested, which means your income and assets are looked at to decide whether you need to contribute towards it. The rate is also indexed twice a year, in March and September.

If you are asked to contribute, your payment is called a hotelling contribution. The most you could be asked to pay is the full value of the hotelling supplement, which is currently $22.15 per day.

Do you need to pay the Hotelling Contribution?

In many cases, you may only be asked to pay part of the supplement, with the government paying the rest. For example, if your means assessment shows you need to contribute $2 per day, the government will pay the remaining $20.15 per day.

If your income and assets are below the set thresholds, the government will continue to pay the full hotelling supplement, and you won’t need to contribute.

If you do need to pay a hotelling contribution, Services Australia will notify both you and your aged care provider of the exact amount once you enter care.