What does aged care cost in Australia?
Plain-English guide · updated 13 July 2026
The parts of an aged care bill
- Basic Daily Fee — a set daily amount everyone pays, indexed to the Age Pension.
- Means-tested contributions — extra amounts based on your income and assets (a hotelling contribution toward daily-living costs and a Non-Clinical Care Contribution), assessed by Services Australia.
- Accommodation payment — for your room, paid as a lump-sum RAD, a Daily Accommodation Payment (DAP), or a combination.
- Everyday-living / additional services — optional extras some homes charge for.
Basic Daily Fee
The Basic Daily Fee is a standard amount every resident pays toward day-to-day living costs (meals, laundry, cleaning). It's set at 85% of the single basic Age Pension and updated each March and September when the pension changes. Check the current dollar amount at My Aged Care.
Means-tested contribution
On top of the basic fee, some residents pay a means-tested contribution toward the cost of their care. Services Australia assesses your income and assets to work out the amount, and annual and lifetime caps apply so contributions don't run away over time.
See homes and their costs near you
Compare providers on the government's star ratings, then check your eligibility with the home you like.
See Providers near you →Accommodation: RAD vs DAP
You pay for your room either as a Refundable Accommodation Deposit (RAD) — a refundable lump sum — or as an equivalent Daily Accommodation Payment (DAP), or a mix of both. A RAD is refunded when you leave, though under the Aged Care Act 2024 (in force since 1 November 2025) providers may retain 2% of the deposit each year, for up to five years, on accommodation arrangements entered from that date. The right choice depends on your finances; a financial adviser or Services Australia can help.
Common questions
How much does a nursing home cost per week?
It varies widely by home and by your income and assets. Everyone pays the basic daily fee; some pay a means-tested contribution and an accommodation payment on top. Ask each home for a written schedule of fees.
What is a RAD?
A Refundable Accommodation Deposit — a lump sum you can pay for your room. It's refunded when you leave, subject to any retention amount the provider is permitted to keep.
Is aged care means tested?
Partly. Everyone pays the basic daily fee, but the additional care contribution and how much you pay for accommodation depend on a Services Australia assessment of your income and assets.
Do I have to sell the family home?
Not necessarily — how the former home is treated in the means assessment depends on your circumstances and who still lives there. Get advice from Services Australia or a financial adviser before selling anything.
Are the fees capped?
Yes. Annual and lifetime caps limit how much you can be asked to pay in means-tested care contributions. Check the current caps with My Aged Care or Services Australia.
Last updated 13 July 2026. Sources are linked inline and drawn from Australian Government and peak-body publications.