What aged care costs, in plain English
There are three parts: the room, a basic daily fee everyone pays, and contributions that depend on income and assets. Figures below are as at 20 September 2026.
How much does an aged care home cost in Australia?
Every resident pays the basic daily fee of $68.93 a day (about $25,159 a year). On top of that is the room, either a refundable lump sum (often several hundred thousand dollars in the cities), a daily payment, or a mix, plus means-tested contributions that are $0 for some people and over $100 a day for others. The government pays the room for people with low means.
1. The room
Each home sets and publishes a price for each room. You can pay it three ways. A home can't ask you to choose how to pay before you move in. You can pay a refundable lump sum, in full or in part, any time after moving in once the means assessment is finalised; until then the room is paid by daily payments.
- A lump sum (the refundable accommodation deposit, or RAD). It is refunded when the person leaves, less any agreed deductions. For people who moved in from 1 November 2025, the home keeps 2% a year for up to five years.
- A daily payment (the daily accommodation payment, or DAP). It is calculated from the lump sum at the government's interest rate, currently 8.51% (as at 1 October 2026). For example, a $550,000 room works out to about $128.23 a day. This is not refunded.
- A mix of the two, with the daily payment reducing as more of the lump sum is paid.
Homes can charge up to $789,686 for a room without special approval. People with low means pay a means-tested amount instead, and the government pays the rest (up to $73.73 a day).
2. The basic daily fee
$68.93 a day, set at 85% of the single basic age pension. It covers living costs such as meals, cleaning and laundry. Every resident pays it, and homes cannot charge more.
3. Means-tested contributions
What else a person pays depends on when they moved in, and on an assessment of their income and assets by Services Australia.
Moved in from 1 November 2025
- Hotelling supplement contribution: up to $22.15 a day, towards everyday living costs. No annual or lifetime cap.
- Non-clinical care contribution: up to $109.45 a day, towards care such as help with showering and getting around. It stops after four years or once $140,652.80 has been paid, whichever comes first.
- Clinical care, such as nursing, is fully funded by the government.
Moved in before 1 November 2025
- The older means-tested care fee continues, up to $37,055.98 a year and $88,934.57 over a lifetime.
Because the new contributions use a sliding scale across income and assets, nobody can honestly tell you an exact figure without the official assessment. Our estimator shows the structure and the caps.
Optional extras
Some homes charge for additional or extra services, such as premium meals, wine with dinner, a larger room or pay TV. These must be agreed with you in writing and should be optional. Ask for the list on every tour.
General information only. This is not financial advice. Decisions about how to pay, selling the family home, or the effect on the pension should be made with a licensed financial adviser or Services Australia's free Financial Information Service. Sources: schedule of fees and charges, My Aged Care.
Costs by city
Room prices vary a lot by area. See the published prices for:
- Melbourne
- Sydney
- Brisbane
- Perth
- Adelaide
- Geelong
- Gold Coast
- Canberra
- Newcastle
- Hobart
- Ballarat
- Central Coast
- Sunshine Coast
- Bendigo
- Wollongong
- Toowoomba
- Townsville
- Cairns
- Launceston
- Darwin
Questions about costs
Do you get the room payment (RAD) back?
Yes, a lump-sum room payment is refundable when the person leaves the home or dies, less anything agreed to be deducted. For people who moved in from 1 November 2025, the home keeps 2% of the lump sum each year for up to five years.
Do we have to sell the family home?
Not necessarily. The home can be paid for as a daily payment instead of a lump sum, or a mix, and the family home may be partly or fully exempt from the means test in some situations (for example if a partner still lives there). This is exactly the kind of decision to take to a licensed financial adviser or Services Australia's free Financial Information Service.
What if Mum or Dad cannot afford the room price?
If their assets are below the government's threshold ($66,500 as at 20 September 2026) and income is limited, the government pays some or all of the accommodation cost. The home cannot ask a fully supported resident for a room payment.
How do I find out exactly what we will pay?
Services Australia works it out from an income and assets assessment (usually form SA457, or SA485 for some pensioners who own a home). The home then gives you a fee estimate. Our fee estimator gives a general idea first.
Is the basic daily fee the same everywhere?
Yes, it is set by the government: $68.93 a day (as at 20 September 2026). Homes cannot charge more for it.