An Aged Care Home (also known as a Nursing Home or Residential Aged Care Facility) provides accommodation and daily living support for older people who can no longer live independently.
When is it time to move into Aged Care?
Your loved one may need to move into aged care if they require assistance with:
- Accommodation (when living at home is no longer viable)
- Everyday living (housework, shopping, cooking, social interaction)
- Health care (nursing, physiotherapy, medical care)
- Personal care (dressing, eating, bathing, toileting)
- Safety modifications (handrails, ramps)
- Aided equipment (walking frames, etc.)
Types of Aged Care
- Long-term residential care (permanent move)
- Short-term residential care (respite or post-hospital recovery)
Who provides Aged Care?
- Not-for-profit organisations
- Government organisations
- For-profit organisations
Who is eligible?
- People aged 65+ (or 50+ for Aboriginal or Torres Strait Islander people) who need help with daily tasks.
- Eligibility may be granted earlier depending on circumstances.
What are the costs of an Aged Care Home? (Effective 20th March 2026)
The new fee structure applies to residents entering care from 20th March 2026. Fees are set within government guidelines and depend on your chosen facility and a government assessment of your income and assets. The main fees are:
1. Basic Daily Fee
- All residents pay this fee for daily living services (meals, cleaning, laundry, utilities).
- Set at 85% of the single basic Age Pension (currently $66.80 per day, but subject to change).
- This fee is reviewed in March and September each year.
2. Accommodation Payment
- Covers the cost of your room.
- Payment options:
– Refundable Accommodation Deposit (RAD): Lump sum, now subject to a retention of up to 2% per year (max 10% over five years) by the provider. The remainder is refunded when you leave.
– Daily Accommodation Payment (DAP): Interest on unpaid RAD, indexed to inflation twice a year.
- The amount depends on your means assessment and the room price negotiated with the provider.
3. Means-Tested Fees (from 20th March 2026)
- Hotelling Contribution: A means-tested daily fee (up to $22.15/day) for services like meals, cleaning, and laundry. Only payable by those with higher means.
- Non-Clinical Care Contribution (NCCC): A means-tested daily fee (up to $107.32/day, with a lifetime cap of $137,917.01) for personal care (bathing, mobility, lifestyle activities). No annual cap, but a higher lifetime cap applies.
- Clinical Care: Fully funded by the government for all residents.
4. Higher Everyday Living Fee
- Replaces previous “extra” and “additional” service fees.
- Optional, for premium or extra services (e.g., in-room phone, Wi-Fi, newspapers).
- Negotiated after moving in, with cooling-off periods and regular reviews.
Important Notes
- If you entered care before 20th March 2026, your existing fee arrangements continue under the “no worse off” principle.
- All residents must report changes in financial circumstances within 28 days.
- Seek independent financial advice before opting into new fee arrangements, as this decision cannot be reversed.
