Aged Care Fees For Pensioners

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.

Cohort note

Applies mainly to residents on the 1 July 2014 fee arrangements. If your parent entered residential care from 1 November 2025, check whether the newer hotelling contribution and non-clinical care contribution rules apply instead.

Do not assume the pension answers everything

The pension is important, but aged-care costs can also depend on assets, accommodation choices, and provider fees.

What to ask early

Ask how fees are handled while income and assets assessments are pending, and whether the family home affects the estimate.