What is an Aged Care Home?

An Aged Care home is a residential home provided to support older people with their accommodation needs and everyday living when they can no longer support themselves in their own homes.  An Aged Care Home can also be called a Nursing Home or Residential Aged Care Facility.


How do you know when it’s time to move into Aged Care?

Your elderly loved one may need to move to Aged Care if they need assistance with any of the following:

Accommodation – If living in their own home is just no longer viable.

Everyday Living – Housework, Shopping, Cooking and Social Interaction.

Health Care – Nursing, Physio or Medical Care.

Personal Care – Dressing, Eating, Bathing and Toileting.

Safety Modifications – Needing Handrails and Ramps to move around.

Aided Equipment – Such as Walking Frames are required to walk.


What are the types of Aged Care?

Long Term Residential Care – for a permanent move into Aged Care.

Short Term Residential Care – such as after hospital recovery or respite care.


Who provides Aged Care?

  • Not-for-profit Organisations
  • Government Organisations
  • For-profit Organisations


Who is Eligible for Aged Care?

  • If you are aged 65 years or older (50 or older if you identify as an Aboriginal or Torres Strait Islander person) and
  • Need assistance to complete tasks and errands you used to do.
  • Some people may be eligible at an earlier age, depending on their circumstances.


What are the costs of an Aged Care Home?

Each home sets their own prices within a prescribed limit and costs vary.  How much you pay will depend on the place you choose, as well as an assessment of your income and assets by the Government.  There are three types of costs associated with Aged Care Homes:

Basic Daily Care Fees

Every resident is charged a daily fee which is currently $60.86 per day. This is capped at 85% of the Centrelink Single Full Aged Pension and is revised in March and September each year. This covers the day-to-day services received at the home.

Accommodation Payment

This was formerly known as the bond paid to the facility. The amount paid depends on your assessed income and assets. This can be paid the following ways:

  • Refundable Accommodation Deposit (RAD) – this option involves paying a contribution or full payment towards the requested room cost.
  • Daily Accommodation Payment (DAP) – the DAP is calculated as the interest payable on the unpaid RAD. The current interest rate is determined by the Government and should be checked here.
  • RAD payments made to accredited Aged Care homes are government-guaranteed and repaid in full upon death or moving to another facility.  In some circumstances, some types of fees can be deducted from the RAD lump sum, and this means that less than 100% of the amount paid is refunded.

Means Tested Care Fee

This is calculated by the Centrelink Aged Care Assessment team and is determined based on the resident’s income and assets. This fee varies depending on your means and can be a minimum of $0 per day to a maximum of $400.08 per day.

Extra Services or Additional Services Fee

Some Aged Care homes also offer extra services that can attract an additional charge.  For example, these services may include in-room telephone, Wi-Fi, or a daily newspaper.  Fees charged depend upon the facility.

If you would like to talk to us about fees and charges and book a complimentary appointment, please book an Information Session with us here.


Finding the right Aged Care home for your loved one takes time, so it’s best to start searching earlier rather than later.  There are Aged Care Consultants who specialise in guiding families through the, often confusing, If you would like to know more about our short-term or long-term accommodation options, you can phone us on 1300 104 663 or contact us here. We have aged care homes in Geelong as well as Melbourne.



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