Money & legal

Aged care costs explained

My Aged Care, means-testing, and what you actually pay

Aged care costs are the thing families dread most — not because the money is not there, but because nobody explains the system in plain language. Here it is.

Aged care is changing

Australia's aged care system has changed. The Support at Home program started in November 2025, replacing Home Care Packages and the Short-Term Restorative Care Programme. The Commonwealth Home Support Programme (CHSP) continues for now, and transitions no earlier than 1 July 2027. Some information here may be outdated — always check myagedcare.gov.au for the latest.

The types of fees

Basic daily fee: everyone pays this — it is set as a percentage of the single aged pension, so it moves when the pension does
Means-tested care fee: calculated by Services Australia based on your income + assets. Some people pay nothing; others pay up to a capped amount.
Accommodation cost (residential only): this is the big one. Paid as a lump sum (RAD) or daily payment (DAP) or a combination.

My Aged Care — current fees

Official fee schedule.

Services Australia — income and means assessment

The Refundable Accommodation Deposit (RAD)

A RAD is a large sum, and the amount differs by home and by area — each home must publish its own on its website and on My Aged Care. The key word is REFUNDABLE — it is returned in full when the person leaves or dies. Think of it like a bond, not a fee. You can pay it as a lump sum, a daily payment (DAP, calculated from the RAD at a government-set interest rate), or a combination.

The family home is exempt from the means test if a spouse, dependent child, or protected person still lives there. This is a huge relief for many families.

Find a provider with RAD prices

Compare facilities, fees and star ratings.

Getting financial advice

An aged care financial adviser (independent, fee-for-service) can save a family tens of thousands of dollars by structuring payments optimally. The Financial Information Service at Services Australia is free and handles the basics. For anything involving the family home, super, or pension, get specialist advice.

National Debt Helpline

Call 1800 007 007 · 9.30am–4.30pm Mon–Fri

Financial Information Service (free)

Services Australia's free information service.

Financial hardship

If someone genuinely cannot afford the accommodation cost, they can apply to be a "fully supported" resident. The government pays their accommodation. No one is supposed to be turned away from aged care because they cannot pay.

My Aged Care — financial hardship assistance

Apply to have fees reduced or waived.

Financial advisers register

Check an adviser is licensed before you pay for advice

Choosing a financial adviser

What to ask, and what advice should cost

See all 16 guides in Money & legal →

From bluetulipco.com/library/money/aged-care-costs-expanded — printed 1 October 2026.

General information only — not a substitute for legal, medical, financial, or therapeutic advice. Read the full disclaimer.

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