Fees and contributions you may pay
It is important that you fully understand the different fees and charges you may need to pay, before signing up for any residential care services. There are several costs associated with permanent care and palliative care in an aged care.
1. Basic Daily Care Fees
This fee helps pay for your day-to-day services such as meals, cleaning, facilities management, and laundry. You pay this fee directly to your aged care home, generally on a fortnightly basis. The fee applies for every day you are a resident, including days when you might be away overnight—for example, on holiday or in hospital. The basic daily fee is set at 85% of the single person rate of the basic age pension. The government updates it on 20 March and 20 September each year in line with increases to the age pension. Prices are published on the Department of Health, Disability and Ageing website.
2. Means Tested Care Fees
This fee is an extra contribution that some people pay, as determined through a means assessment. It is an ongoing fee towards the cost of your person and clinical care. The means tested care fee is different for everyone, and not everyone will have to pay it. If you do need to pay it, Services Australia will let you know the amount once you enter care Your means tested care fee does not remain fixed when you enter an aged care home; it can change over time.
Do I need to pay a means tested care fee?
You can use the fee estimator to get an idea of:
- The basic daily fee
- Your means tested care fee, and
- Whether you may be eligible for assistance with your accommodation costs.
To know more about the fees and charges for residential aged care, please visit:
- Schedule of fees and charges for residential and home care
- Factsheet on understanding fees for aged care homes
3. Accommodation Payment
Everyone entering an aged care home needs to agree on a room price in writing with their provider before they enter care. Whether or not you need to pay the agreed amount will depend on your means assessment with Services Australia. As a general guide:
- If you are eligible for government assistance (referred to as low means), the government will pay some or all of your accommodation costs to your You will be asked to pay an accommodation contribution if the government does not pay the full amount.
- If you’re not eligible for government assistance with your accommodation costs (not low means), you will pay the room price you agreed to with your aged care home as an accommodation payment.
The amount you contribute is calculated by Services Australia based on your income and assets.
What are my accommodation payment options?
You have three options as to how you can pay for your accommodation.
Refundable Accommodation Deposit (RAD)
A lump-sum payment of the accommodation cost. If this is paid, Aminya is entitled to retain 2% of the RAD, capped at 5 years. Under your accommodation and service agreement, we may also deduct other amounts from the RAD,
e.g. unpaid contributions. Otherwise, the balance of the RAD is refunded after you leave the residential care home.
Daily Accommodation Payment (DAP)
A regular payment spread over time, equivalent to the RAD plus interest on unpaid parts of the RAD amounts. The interest rate is set by the Australian Government. DAPs are indexed twice annually.
Combination Payment
A payment option consisting of a part RAD payment supplemented with a DAP e.g. 50% RAD + 50% DAP. Aminya is entitled to retain 2% of the RAD, capped at 5 years.
- non-refundable daily payments, or
- a combination of both
Refundable Accommodation Deposit (RAD) Retention
Aged care providers can retain 2% per annum of the lump sum payment (RAD/RAC balance). This deduction applies for a maximum of 5 years. A total maximum retention of 10% of the initial lump sum payment over the five-year period. This means the amount refunded to the resident (or their estate) when they leave the home will be the original RAD minus any agreed deductions (like daily accommodation payments) and this new retention amount.
Learn more: Accommodation payments and contributions for residential aged care
From the 2021-2022 financial year onwards, approved providers who are required to lodge a GPFR to the Department, are also required to publish their GPFR online. Please see the link below to Aminya's 2024-2025 GPFR Publication.