Cost guide · 2026 verified data · Updated 11 May 2026

How Much Does Aged Care Cost in Australia? Full 2026 Breakdown (Verified Data)

The most-asked question about aged care in Australia is also the one most operators won't answer publicly: how much does it cost? We built this guide from 56 verified Australian residential aged-care facilities — every fee figure pulled from the facility's published 2026 accommodation pricing schedule on the My Aged Care register. No averages from 2019; no broker quotes; no behind-callback-form gates.

The Health Desk · Editorial team, aged care + dental + plastic surgery + dermatology + weight-loss + psychology · Updated 13 May 2026 · How we rank · Editorial standards

★Key takeaways

  • ✓Aged-care fees in Australia 2026 have three components: basic daily fee $66.80, means-tested care fee $0–$92.04/day, and accommodation (RAD or DAP).
  • ✓Published RAD prices range $325,000 (entry-level shared rooms) to $1,400,000 (premium suites). Median across our 56 verified facilities: $550,000.
  • ✓Sydney average RAD: $723,111. Melbourne: $798,091. Brisbane: $487,917. Perth: $533,750. Adelaide: $508,750.
  • ✓Total annual all-in cost for typical residents: $40,000–$60,000/year (basic + means-tested + DAP-equivalent). Premium tier: $70,000–$100,000.
  • ✓You do NOT have to sell the home to pay the RAD — half RAD/half DAP and DAP-only options are legally available. Submit Services Australia SA457 first.

The three components of aged-care fees

Every Australian residential aged-care resident pays three separate fees: (1) basic daily fee, (2) means-tested care fee, (3) accommodation. These add together to your total daily cost. Family contributions to a RAD are NOT taxed; basic daily fee + means-tested fee ARE part of regulated income for tax purposes (negligible impact on most residents).

Aged-care fee components — Australia 2026 · Click any header to sort
Provider ⇅ Daily ⇅ Annual ⇅ Who pays ⇅ Notes ⇅
Basic daily fee $66.80/day$24,382/yearAll residentsRegulated — 85% of single Age Pension
Means-tested care fee $0–$92.04/day$0–$33,575/yearIncome + assets above thresholdCapped annually + lifetime ($80,584)
Accommodation: full RAD $0/dayLump sum $325,000–$1,400,000Refundable on departureGovernment-guaranteed up to $187k
Accommodation: full DAP ~$80–$200/day$29k–$73k/yearDaily payment at MPIR 8.38%Non-refundable rent equivalent
Accommodation: half/half VariableRAD half + DAP halfMost common in practiceFlexibility around home sale timing
Extra services fee $5–$70/day$1,825–$25,550/yearPremium rooms / amenities onlyOptional — premium-tier facilities

Basic daily fee + means-tested cap rates regulated by the Department of Health, effective 20 March 2026 and indexed twice yearly. MPIR effective 1 January 2026 set by the Federal Government quarterly. RAD ranges from our verified facility data.

Average published RAD by city — verified data · Click any header to sort
Provider ⇅ Avg RAD ⇅ Basic daily fee ⇅ Means-tested cap (annual) ⇅ Means-tested cap (lifetime) ⇅
Sydney $723,111$66.80$33,575 cap$80,584 cap
Melbourne $798,091$66.80$33,575 cap$80,584 cap
Brisbane $487,917$66.80$33,575 cap$80,584 cap
Perth $533,750$66.80$33,575 cap$80,584 cap
Adelaide $508,750$66.80$33,575 cap$80,584 cap

Averages from our 56 verified facilities across capital cities. Wide variance within each city — premium harbour/parkland suburbs cluster $750k–$1.5M+; mid-tier $400k–$700k; entry-tier $250k–$400k. Basic daily fee + means-tested caps are regulated nationally (same in every state).

Walking through a typical example

Consider a single resident, $25,000 annual income (Age Pension + a small superannuation pension), $300,000 assets excluding home (which is means-test protected because their spouse lives there). They choose a Sydney facility with a $550,000 RAD, paying half-half.

Their daily cost:

  • Basic daily fee: $66.80/day
  • Means-tested care fee: ~$25/day (income-tested only — assets below threshold)
  • Half DAP: $275,000 × 8.38% / 365 = $63.13/day
  • Total: ~$155/day = ~$56,500/year

The half RAD ($275,000) is refundable on departure. If they pass away within 3 years, the family receives the $275,000 back (less government-deducted fees). The home stays with the surviving spouse — never enters the means test.

How RAD versus DAP affects your decision

The fundamental choice: pay the RAD as a lump sum (large up-front, refundable on departure) or pay the equivalent as DAP (daily payment at the MPIR rate, NOT refundable). The break-even depends on length of stay + alternative-use return on the lump sum.

If you can earn >8.38% net on the lump sum (above MPIR), DAP is mathematically better. Most residents and families can't reliably earn 8.38% net after tax + risk, so RAD is the default for those who can fund it. Half-half is the practical compromise — partial cash deployment + some lump sum protection from market risk.

When the means-tested fee becomes meaningful

For most retirees on the Age Pension with modest assets, the means-tested fee is $0–$30/day. It scales significantly only when income above $33,508 (single) or assets above $498,889 (kick into the 2% bracket). Self-funded retirees with $1M+ assets typically hit the annual $33,575 cap quickly — but ALSO benefit from a lifetime cap of $80,584. After 2.4 years at the annual cap, you stop paying means-tested fees for life.

Use our means-test calculator to model your specific situation across single/couple, home treatment, and RAD price scenarios.

The "RAD negotiation" most families never know about

Published RAD is the asking price; many facilities will negotiate, particularly if you offer to pay a higher daily ratio or commit quickly. Standard discount range: 5–15% off published RAD. Negotiation tactics: (a) ask for a Maximum Permissible RAD by income, (b) compare to similar nearby facilities, (c) ask whether the facility has end-of-financial-year occupancy targets, (d) compare premium-vs-standard room categories. Bring our RAD comparison data to the tour conversation.

Common questions

What is the basic daily fee for aged care in Australia 2026?
The basic daily fee is $66.80/day ($24,382/year) as at 20 March 2026. It is regulated at 85% of the single Age Pension and indexed twice yearly (20 March + 20 September). Every resident pays this fee regardless of income or assets — it covers core living costs (meals, laundry, utilities, basic care).
What is a RAD and how much does it cost?
A RAD (Refundable Accommodation Deposit) is the lump sum a resident pays for their accommodation. Across our 56 verified facilities, published 2026 RADs range from $325,000 (entry-level shared rooms) to $1,400,000 (premium harbour-view single suites in major capitals). Median: $550,000. Sydney average $723,111; Melbourne $798,091; Brisbane $487,917; Perth $533,750; Adelaide $508,750. The RAD is government-guaranteed up to $187,000 and fully refundable on departure (death or transfer).
What is the means-tested care fee?
The means-tested care fee is an additional contribution from residents with income or assets above the safe-harbour thresholds. Calculated as: 50% of income above the income-free area ($33,508 single / $51,892 couple) PLUS asset-based contribution (17.5% of assets $61,500–$206,663, 1% of $206,663–$498,889, 2% above). Capped at $33,575/year and $80,584/lifetime. Most residents pay $0–$50/day. Use our means-test calculator for an estimate.
Do I have to sell my home to pay the RAD?
No. There are five lawful ways to fund the RAD without selling the home: (1) Half RAD / half DAP — pay part lump sum, part daily, (2) Full DAP — pay daily fee only, no lump sum, (3) Sell home — pay full RAD lump sum, (4) Mortgage / reverse mortgage on the home, (5) Family contribution. The home is means-test exempt if a "protected person" (spouse or carer dependent) lives there. Always submit Services Australia form SA457 before agreeing to anything.
What is the Maximum Permissible Interest Rate (MPIR)?
The MPIR is the rate the government sets quarterly that converts a RAD lump sum to a daily DAP. As at 1 January 2026, MPIR = 8.38%. Formula: DAP/day = (RAD × MPIR) / 365. Example: $500k RAD × 8.38% / 365 = $114.79/day DAP. The MPIR reflects current interest rate environment and updates every 3 months.
How much do families typically pay all-in per year?
Typical annual all-in cost for a residential aged-care resident in 2026: Lower means-test bracket: $24,000–$35,000/year (basic daily fee + minimal means-tested + half RAD/half DAP). Median: $40,000–$60,000/year. Premium: $70,000–$100,000+/year (full DAP at high MPIR + extra services). Important: the RAD is a lump sum, not an annual cost — it is refundable. Most families consider total all-in cost over 3-5 years (the average length of stay).
What's the difference between basic daily fee, means-tested fee, and accommodation?
Three separate components. (1) Basic daily fee: $66.80/day for everyone, covers food + laundry + power, regulated. (2) Means-tested care fee: extra contribution based on your income + assets, $0–$92/day, covers clinical care. (3) Accommodation: how you pay for your room — RAD (lump sum) or DAP (daily) or half/half. These three add together to your total daily cost. Submit Services Australia form SA457 to get your official means-test result before signing.
Are home care packages cheaper than residential aged care?
Generally yes — Home Care Packages (HCP Levels 1-4) cost $9-$11/day basic fee + means-tested fee up to $35/day. Level 4 HCP funding: ~$60,000/year. But "cheaper" depends on care needs. A resident needing 24-hour clinical care will accrue costs in HCP that exceed residential care. Most families use HCP first, transition to residential when needs escalate. Commonwealth Home Support Programme (CHSP) is the lower-acuity entry-level option.
Does Medicare cover aged care?
Medicare does NOT cover residential aged care fees or RAD. Medicare covers medical services delivered within aged care (GP visits, specialist consultations, allied health, pharmaceuticals). The Federal Government subsidises aged care through the Aged Care Subsidy + Supplements paid directly to the facility — this is the major government contribution. Residents pay the basic daily fee + means-tested fee + accommodation as outlined.
Where do I get the official means-test result?
Submit Services Australia form SA457 (Aged Care Calculation of your cost of care). The assessment uses your income + assets data to calculate the means-tested fee. You should do this BEFORE signing a resident agreement with a facility. Centrelink processes the assessment; result valid for 2 years. Free to apply. Australian Government provides Aged Care Financial Advice subsidy ($800) for one-off financial advice from an Accredited Aged Care Professional adviser.

Next step

Run our means-test calculator to estimate YOUR exact daily fee + RAD/DAP cost in 60 seconds. Then browse 56 verified facilities with their published RAD prices visible — no callback gates, no broker forms, no "request a quote" walls.