Costs of Residential Care

Information on the costs associated with residential care services

Page last updated: 03 December 2007

Aged care homes may charge a number of fees and charges, although a resident may not be eligible to pay all of them.

Residents of aged care homes may be asked to pay a basic daily care fee. This fee contributes to living expenses like meals, laundry, heating/cooling, and nursing and personal care.

Residents (other than respite residents) may also be asked to pay an income-tested fee, depending on their income and level of care. Residents will not be asked to pay more than they can afford and no resident will pay more than the cost of their care.

In addition, residents may be asked to contribute towards the cost of their accommodation in an aged care home by paying an accommodation bond or accommodation charge. A resident can only be asked to pay a bond or charge if their assets exceed an amount set by the Australian Government.

A resident may be eligible for Government assistance with the cost of their accommodation. In order for a person to test their eligibility for assistance, an assets assessment needs to be undertaken.

Centrelink and the Department of Veterans' Affairs (DVA) undertake assets testing of new residents entering aged care homes. People wishing to have an assets assessment will need to complete a Request for an Assets Assessment form and submit it to Centrelink or DVA (in the case of veterans).

The Request for an Assets Assessment form is distributed by Aged Care Assessment Teams (ACATs), the My Aged Care on 1800 200 422 and through the Request for an Assets Assessment Form.

Information about recent changes to the rules about gifts of assets and income streams under the assets assessment for entry into aged care may be obtained through:

Gifted assets and income streams changes

For more detailed information on fees and charges please contact My Aged Care on 1800 200 422.
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