What are the current aged care fees and caps?
As at 20 September 2026: the basic daily fee is $68.93 a day; the hotelling contribution is up to $22.15 a day; and the non-clinical care contribution is up to $109.45 a day, with a lifetime cap of $140,652.80 or 4 years. A home can set a room price of up to $789,686 without approval, and the MPIR used for daily room payments is 8.51% from 1 October 2026. What a person actually pays depends on Services Australia's means assessment.
The short version
- Basic daily fee: $68.93 a day (as at 20 September 2026). Low means threshold: $73.73 a day.
- Room: up to $789,686 without approval; daily payment at 8.51% from 1 October 2026.
- New residents: hotelling up to $22.15 and non-clinical care up to $109.45 a day; RAD retention 2% a year for up to 5 years.
- Most figures change on 20 March and 20 September; the MPIR changes quarterly; the room price limit each 1 July.
These are the maximums and thresholds the government sets. What a person actually pays depends on when they moved in, the room price agreed with the home, and the means assessment by Services Australia. Each row links to the official page it was checked against.
Everyone in an aged care home
| Item | Figure | Applies | Source |
|---|---|---|---|
| Basic daily fee (maximum, everyone pays it) | $68.93 a day ($25,159.45 a year) | 20 September 2026 | Fee schedule |
| Highest room price a home can charge without approval | $789,686 | 1 July 2026 to 30 June 2027 | Department of Health |
| Maximum permissible interest rate (MPIR), for room prices agreed now | 8.51% | 1 October 2026 to 31 December 2026 | Fee schedule |
| MPIR, previous quarter | 8.43% | 1 July to 30 September 2026 | Fee schedule |
| Daily payment (DAP) formula | Room price × MPIR ÷ 365 | MPIR fixed on the day the price is agreed | My Aged Care |
| Maximum accommodation supplement (also the low means threshold) | $73.73 a day | 20 September 2026 | Fee schedule |
| Government pays the whole room if | Income below $36,454.60 and assets below $66,500 | 20 September 2026 | My Aged Care |
| Average full RAD received by homes (industry survey, not a government figure) | $552,458 | March 2026 survey (year to date) | StewartBrown |
Read more: what aged care costs and RAD or DAP: paying for the room.
Source: schedule of fees and charges for residential care, 20 September 2026; maximum accommodation payment amounts
Moved in from 1 November 2025
| Item | Figure | Applies | Source |
|---|---|---|---|
| Hotelling contribution (maximum) | $22.15 a day; no annual or lifetime cap | 20 September 2026 | Fee schedule |
| Non-clinical care contribution (maximum) | $109.45 a day; no annual cap | 20 September 2026 | Fee schedule |
| Non-clinical care contribution lifetime cap | $140,652.80, or 4 years of payments, whichever comes first | 20 September 2026 | My Aged Care |
| RAD retention | 2% a year of the balance, for up to 5 years | 1 November 2025 | Department of Health |
| DAP indexation | Each 20 March and 20 September | 1 November 2025 | Department of Health |
| Deadline to choose how to pay for the room | None. Daily payments apply until a lump sum is paid | 1 November 2025 | Department of Health |
| Higher everyday living fee | Optional; agreed only after moving in; 28-day cooling off | 1 November 2025 | Department of Health |
Read more: aged care costs in 2026, with worked examples.
Source: My Aged Care: aged care home costs and fees
Moved in before 1 November 2025
People who moved in on or before 31 October 2025, and people covered by the "no worse off" principle, stay on the 1 July 2014 fee arrangements unless they opt in to the new ones.
| Item | Figure | Applies | Source |
|---|---|---|---|
| Means-tested care fee (maximum) | $380.46 a day | 1 October 2026 | Fee schedule |
| Means-tested care fee annual cap | $37,055.98 | 20 September 2026 | My Aged Care |
| Means-tested care fee lifetime cap | $88,934.57 | 20 September 2026 | My Aged Care |
| Asset thresholds for the older formula | Free area $66,500; then $219,858.40 and $526,575.20 | 20 September 2026 | Fee schedule |
| Time to choose how to pay for the room (entered care before 1 November 2025) | 28 days after entry, with up to 6 months to pay a lump sum | Entered care before 1 November 2025 | Department of Health |
Read more: who stays on the older care fee.
Source: My Aged Care: aged care costs if you entered care between 2014 and 2025
Means test thresholds and bands
| Item | Figure | Applies | Source |
|---|---|---|---|
| Income free area, single | $36,454.60 a year | 20 September 2026 | Fee schedule |
| Income free area, each member of a couple separated by illness | $35,726.60 a year | 20 September 2026 | Fee schedule |
| Asset free area | $66,500 | 20 September 2026 | Fee schedule |
| Home value cap (if no protected person lives there) | $219,858.40 | 20 September 2026 | My Aged Care |
| Deeming thresholds | $66,800 single; $110,600 couple (at least one on a pension) | 1 July 2026 | Services Australia |
| Deeming rates | 1.75% below the threshold; 3.75% above | 20 September 2026 | Services Australia |
| Days divisor in the formula | Yearly amount ÷ 364 | 1 November 2025 arrangements | Fee schedule |
| Fee advice letter valid for | 120 days from the assessment | Current | Services Australia |
| Reporting changes to income or assets | Within 28 days (a legal requirement) | 1 November 2025 | My Aged Care |
| Yearly income | Counted at |
|---|---|
| Up to $36,454.60 | 0% |
| $36,454.60 to $90,130.04 | 50% |
| $90,130.04 to $105,048 | 0% |
| $105,048 to $121,173.20 | 50% |
| $121,173.20 to $145,818.40 | 0% |
| Above $145,818.40 | 50% |
| Assets | Counted at |
|---|---|
| Up to $66,500 | 0% |
| $66,500 to $219,858.40 | 17.5% |
| $219,858.40 to $266,000 | 0% |
| $266,000 to $369,366.66 | 7.8% |
| $369,366.66 to $552,858.40 | 0% |
| Above $552,858.40 | 7.8% |
Income tested amount plus asset tested amount, divided by 364, gives the daily means tested amount. Below $73.73 the person has low means. Read more: the means test, step by step.
Source: Department of Health, Disability and Ageing: fee scenarios (worked examples); schedule of fees and charges, 20 September 2026
Respite and transition care
| Item | Figure | Applies | Source |
|---|---|---|---|
| Residential respite: basic daily fee (maximum) | $68.93 a day; no means-tested contributions and no accommodation costs | 20 September 2026 | My Aged Care |
| Residential respite: subsidised days | Up to 63 days a financial year, extendable by 21 days at a time with approval | Current | My Aged Care |
| Residential respite: booking fee (maximum) | The lower of one week of fees or 25% of the fee for the whole stay, deducted from fees on entry, refundable if cancelled more than 7 days before. | Current | My Aged Care |
| Transition care at home (maximum) | $14.19 a day | 20 September 2026 | My Aged Care |
| Transition care in a residential setting (maximum) | $68.93 a day | 20 September 2026 | My Aged Care |
| Transition care length | Up to 12 weeks, plus up to 6 more weeks after reassessment | Current | My Aged Care |
Emergency respite can be arranged through Carer Gateway on 1800 422 737. See how we help with respite.
Source: My Aged Care: short-term care costs and fees; transition care
Support at Home
Support at Home replaced Home Care Packages and short-term restorative care on 1 November 2025. Budgets include 10% for care management and are current as of 1 October 2026.
| Classification | A quarter | A year |
|---|---|---|
| 1 | $2,757.89 | $11,031.56 |
| 2 | $4,120.89 | $16,483.55 |
| 3 | $5,645.23 | $22,580.93 |
| 4 | $7,632.04 | $30,528.15 |
| 5 | $10,202.32 | $40,809.27 |
| 6 | $12,365.48 | $49,461.91 |
| 7 | $14,944.20 | $59,776.80 |
| 8 | $20,073.50 | $80,294.00 |
| Transitioned classification | A quarter |
|---|---|
| Level 1 (transitioned) | $2,823.55 |
| Level 2 (transitioned) | $4,965.14 |
| Level 3 (transitioned) | $10,808.30 |
| Level 4 (transitioned) | $16,385.99 |
| Item | Figure | Applies | Source |
|---|---|---|---|
| Contributions: clinical supports | Nil for everyone. From 1 October 2026 this includes personal care. | Personal care included from 1 October 2026 | My Aged Care |
| Contributions: independence services | Full pensioners 5%; part pensioners and Commonwealth Seniors Health Card holders 5% to 50%; self-funded retirees 50%. | 1 November 2025 | My Aged Care |
| Contributions: everyday living services | Full pensioners 17.5%; part pensioners and card holders 17.5% to 80%; self-funded retirees 80%. | 1 November 2025 | My Aged Care |
| Restorative Care Pathway | $6,179.40 a unit; up to 2 units in 12 months, 16-week episodes | People starting from 1 October 2026 | My Aged Care |
| End-of-Life Pathway | $25,736.57 over 12 weeks (usable for up to 16) | People starting from 1 October 2026 | My Aged Care |
| Lifetime cap on contributions, new participants | Shared with the non-clinical care contribution cap of $140,652.80 | 20 September 2026 | My Aged Care |
| Lifetime cap, people covered by the "no worse off" principle (a Home Care Package held or approved on or before 12 September 2024) | $88,934.57 | 20 September 2026 | My Aged Care |
| Median wait from application to starting ongoing services | 297 days | April to June 2026 | Wait times report |
The Commonwealth Home Support Programme (CHSP) has been extended to 30 June 2029 and will stay a separate program rather than merging into Support at Home (announced August 2026). Read more: Support at Home levels and home care or an aged care home.
Source: My Aged Care: Support at Home costs and contributions; Department of Health, Disability and Ageing: Commonwealth Home Support Program reforms
When these figures change
| When | What changes | Source |
|---|---|---|
| 1 January, 1 April, 1 July, 1 October | The MPIR is reset for room prices agreed in the new quarter. People already in a room keep the rate that applied when they agreed their price. | Fee schedule |
| 20 March and 20 September | The schedule of fees and charges is reissued: the basic daily fee, the respite and transition care maximums, the hotelling and non-clinical care caps, the means-tested care fee caps, the free areas and thresholds, the home value cap and the maximum accommodation supplement. Daily accommodation payments for new residents are indexed on the same dates. | Fee schedule |
| 1 July | The highest room price without approval is indexed to CPI. Agreed higher everyday living fees are indexed. Support at Home classification budgets are indexed (they were also raised on 1 October 2026, for the nurses award increase). | Department of Health |
| When the Minister decides | Deeming rates and thresholds are set by the Minister for Social Services. The thresholds last changed on 1 July 2026 and the rates on 20 September 2026. | Services Australia |
When a cap is indexed, the amount that applies to a resident is the one current when they reach it, not the one current when they moved in. The date each figure applies from is shown next to it; the official schedule always has the latest.
Source: Department of Health, Disability and Ageing: schedule of fees and charges (all versions); My Aged Care: changes to fees while in an aged care home
Where each rule is explained
- What aged care costs, in plain English: the three parts of the bill.
- Aged care costs in 2026, with worked examples: four situations worked through to a daily figure.
- The aged care means test, step by step: income, assets, the home, couples and forms.
- RAD or DAP: paying for the room: the formula, retention, drawing down and refunds.
- Aged care and the Age Pension: how the two tests fit together.
General information only. This page explains how aged care fees and accommodation payments work, using the rates and rules published by the Australian Government as at 20 September 2026 (the interest rate for daily accommodation payments as at 1 October 2026). It is not financial, legal or tax advice, and it doesn't take anyone's personal circumstances into account. The fees a person actually pays are worked out by Services Australia after an income and assets assessment, and the accommodation price is agreed with the home in an accommodation agreement (it can't be more than the home's published price). Rates change several times a year. For an official estimate, use the fee estimator on My Aged Care (myagedcare.gov.au, 1800 200 422). For free information about your options, call the Services Australia Financial Information Service on 132 300.
We're not financial advisers. Best Aged Care (Boring Ventures Pty Ltd) does not hold an Australian Financial Services Licence or an Australian credit licence and is not a registered tax agent. We give factual information about how aged care fees and payment options work. We don't recommend how to pay accommodation costs (a RAD, a DAP or a mix), whether to sell, keep or rent the family home, how to arrange assets, or which financial, superannuation, insurance, credit or investment products to use. For those decisions you can call the free Financial Information Service on 132 300, see a licensed financial adviser who specialises in aged care, or speak to a lawyer about powers of attorney and contracts. We don't receive any fee, commission or other benefit from anyone we mention. Before you engage an adviser, check them on the Financial Advisers Register at moneysmart.gov.au.
Questions families ask
What is the basic daily fee for aged care in 2026?
$68.93 a day, or $25,159.45 a year, as at 20 September 2026. It is set at 85% of the single basic Age Pension, everyone in an aged care home pays it, and it changes each 20 March and 20 September.
What is the maximum RAD in 2026?
A home can set a room price of up to $789,686 (1 July 2026 to 30 June 2027) without approval. Above that it needs approval from the Independent Health and Aged Care Pricing Authority. In every case the price can't be more than the home publishes for that room, and it can be negotiated down.
What is the MPIR now?
8.51% for room prices agreed from 1 October 2026 to 31 December 2026. It was 8.43% for 1 July to 30 September 2026. The daily payment is the room price × MPIR ÷ 365, and the rate is fixed on the day the price is agreed.
Is there a lifetime cap on aged care fees?
For people who moved in from 1 November 2025, the non-clinical care contribution stops at $140,652.80 or after 4 years of payments, whichever comes first; the hotelling contribution has no cap. For people on the older arrangements, the means-tested care fee is capped at $37,055.98 a year and $88,934.57 in a lifetime (as at 20 September 2026). The basic daily fee and the room have no cap.
When do aged care fees change?
The MPIR changes each quarter (1 January, 1 April, 1 July, 1 October). Most government fees, caps and thresholds change on 20 March and 20 September. The highest room price without approval changes each 1 July.
What does residential respite cost?
Only the basic daily fee, up to $68.93 a day (as at 20 September 2026). There are no means-tested contributions and no accommodation costs, and no means assessment is needed. A home may also ask for a booking fee: the lower of one week of fees or 25% of the fee for the whole stay, deducted from fees on entry, refundable if cancelled more than 7 days before.
What are the Support at Home budgets?
The yearly budget is $11,031.56 at classification 1, rising to $80,294.00 at classification 8, current as of 1 October 2026. Personal care has no contribution from 1 October 2026; independence and everyday living services have contributions that depend on pension status.
Sources
Last reviewed October 2026. We checked this guide against the official pages below. Rules and figures change, so check the source before you rely on a detail.
- Department of Health, Disability and Ageing: schedule of fees and charges for residential care (20 September 2026)
- Department of Health, Disability and Ageing: schedule of fees and charges
- Department of Health, Disability and Ageing: maximum accommodation payment amounts
- My Aged Care: aged care home costs and fees
- My Aged Care: understanding aged care home accommodation costs
- My Aged Care: means assessments for residential aged care
- My Aged Care: changes to fees, contributions and accommodation costs while in an aged care home
- My Aged Care: aged care costs if you entered care between 2014 and 2025
- Department of Health, Disability and Ageing: RAD and RAC retention
- Department of Health, Disability and Ageing: DAP indexation
- Department of Health, Disability and Ageing: managing accommodation costs
- Department of Health, Disability and Ageing: higher everyday living, additional and extra service fees
- Services Australia: deeming
- Services Australia: how to apply by form
- My Aged Care: short-term care costs and fees
- My Aged Care: respite care
- My Aged Care: transition care
- My Aged Care: Support at Home costs and contributions
- Department of Health, Disability and Ageing: Commonwealth Home Support Program reforms
- Department of Health, Disability and Ageing: wait times report, April to June 2026
- StewartBrown Aged Care Financial Performance Survey, March 2026 (year to date)
This is general information, not legal, financial or medical advice. Best Aged Care is a private placement service run by Boring Ventures Pty Ltd, not part of or acting for the Australian Government or My Aged Care. How we check our facts.