Accommodation supplement for aged care

This supplement helps people in residential aged care who can’t pay their full accommodation costs. Find out who’s eligible to get this supplement and how much you get on behalf of eligible residents.

Applies to 

This supplement is for residential aged care providers. 

What is the supplement? 

Residents of aged care homes contribute towards the cost of their accommodation, if they can afford it. 

This supplement is paid to residential aged care providers on behalf of residents to whom all of the following apply:  

  • They entered care on or after 20 March 2008.
  • They cannot pay for some or all of their accommodation costs.
  • They are eligible for help with accommodation costs based on an assessment of their financial circumstances.

Supplement rate 

View the current supplement rate in the Schedule of Subsidies and Supplements.  

Eligibility 

Services Australia determines eligibility for the accommodation supplement.

Services Australia assesses the resident’s financial circumstances at the time they enter care. Services Australia will do this through one of the following methods: 

  • a combined assets and income means test, if they entered care on or after 1 July 2014 
  • an assets test, if they entered care between 20 March 2008 and 30 June 2014 

The accommodation supplement paid for an eligible resident may be reduced if: 

  • the person entered care between 20 March 2008 and 30 June 2014, and had net assets over the threshold amount on the day they entered care 
  • the person entered care from 1 July 2014 and have either net assets or income over the relevant threshold 

The accommodation supplement is not payable for residents who occupy an extra service place.

Higher accommodation supplement 

Providers are eligible for a higher accommodation supplement if one of the following applies: 

  • The home was newly built on or after 20 April 2012.
  • The home was significantly refurbished on or after 20 April 2012.

How to apply 

You do not need to apply. 

Services Australia automatically pays this supplement for eligible care recipients. 

Payment 

Up to 30 September 2022, the maximum rate of accommodation supplement in a service was reduced by 25% on any day the service did not have over 40% supported residents (excluding respite care recipients and residents in extra service places).

From 1 October 2022, the 40% supported resident rule has been simplified so that the 25% reduction is calculated over a calendar month rather than on individual days.

This means, that if over a calendar month as a whole, the service had 40% or more supported residents (excluding respite care recipients and residents in extra service places) the 25% reduction will not apply on any day in that month.

However, if over a calendar month as a whole, the service had less than 40% supported residents (excluding respite care recipients and residents in extra service places) the 25% reduction would apply on every day in that month.

For the 40% rule, supported residents are permanent residents who are eligible for either concessional resident supplement or accommodation supplement.

Contact

Aged care subsidies and supplements contact

Email us if you have questions about aged care subsidies or supplements for approved providers.
Date last updated:

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