Aged Care Fees Explained In Australia

Which fee arrangements apply?

Entered on or before 31 October 2025 usually means the 1 July 2014 fee arrangements, unless the resident has opted in to newer arrangements. Entered from 1 November 2025 usually means the newer arrangements, although no-worse-off protections can preserve the older fee arrangements for some people. The fee arrangement affects whether the person may pay a means-tested care fee, or a hotelling contribution and non-clinical care contribution. Means status is set on entry to that home, but fee amounts can still change through indexation or changed means.

• 1 July 2014 fee arrangements: basic daily fee, accommodation costs, means-tested care fee where applicable, and higher everyday living fee if agreed.
• 1 November 2025 fee arrangements: basic daily fee, accommodation costs, hotelling contribution, non-clinical care contribution where applicable, and higher everyday living fee if agreed.
• Moving to a different aged-care home can mean a new means assessment.

The main fee buckets

It can help to separate aged-care costs into daily living costs, accommodation costs, assessed contributions, and optional services.

• Basic daily fee for everyday living costs.
• RAD, DAP, or a combination for accommodation.
• Means-tested care fee for residents on the 1 July 2014 fee arrangements, where applicable.
• Hotelling contribution for some residents on the 1 November 2025 fee arrangements, capped at the hotelling supplement.
• Non-clinical care contribution for some residents on the 1 November 2025 fee arrangements who pay the full hotelling contribution.
• Higher everyday living fee (HELF), if the resident chooses to agree to one. HELF is optional, cannot be a condition of entry, and replaced extra service and additional service fee arrangements on 1 November 2025.

Hotelling and non-clinical care contributions

Under the 1 November 2025 fee arrangements, the hotelling contribution is a means-tested contribution towards everyday living services and is capped at the hotelling supplement, currently $22.15 per day. If the resident pays the full hotelling contribution, they may also be asked to pay a non-clinical care contribution towards support such as bathing, mobility assistance, and lifestyle activities. The non-clinical care contribution is capped at $107.32 per day and stops once the lifetime cap of $137,917.01 is reached, or after 4 years of cumulative contributions, whichever comes first.

Current basic daily fee

The maximum basic daily fee is $66.80 per day under the government schedule from 1 July 2026 for residents on the 1 July 2014 or 1 November 2025 fee arrangements. This fee is indexed in March and September, so confirm the current schedule when comparing costs.

What to check before signing

Ask the provider for every fee in writing and check which fees are refundable, non-refundable, optional, or dependent on a government assessment.