Understanding Residential Aged Care Fees

Making sense of the details before you make decisions.

If you’ve ever tried to wrap your head around residential aged care fees, you’ll know it can feel like trying to read another language. There are basic daily fees, means-tested care fees, accommodation payments, supplements, and more, and on 1 November, there are even more changes coming.

It’s a lot. And if you’re helping a parent or loved one make the move into residential aged care, it can be really difficult to figure out what you’re actually going to pay and what decisions have to be made, like whether or not you need to sell the family home.

So, what are all the different fees?

At a simple level, most aged care fees fall into a few main buckets:

• Basic daily fee: This covers everyday living costs like meals, cleaning, and laundry.
• Means-tested care fee: Based on your income and assets, this helps cover the cost of your personal and clinical care.
• Accommodation costs: These are the fees for your room and facilities, which vary depending on your financial situation and the service you choose.
• Additional or extra service fees: Optional extras for higher-end services or amenities.

That’s the short version. But in reality, there are layers upon layers of assessments, forms, and formulas that all influence what ends up on your statement.

Why it feels so confusing

A big part of the confusion comes from the number of agencies and assessments involved. You might start with a My Aged Care assessment to determine eligibility, then a Centrelink or Department of Veterans’ Affairs income and assets assessment, followed by fee advice from an aged care provider, each using slightly different terms and timeframes.

So while one letter tells you one thing, another might seem to contradict it. And in between, you’re trying to figure out what’s due when, what’s refundable, and what might change over time.

If you’ve ever felt like you’re drowning in paperwork or second-guessing what you’ve been told, you’re definitely not alone.

“I just want to know what it’s going to cost.”

That’s the line we hear most often. Families want clarity, not complicated explainations or government jargon, just a clear understanding of what they actually need to budget for.

But getting to that answer isn’t always simple. For example, two people with the same care needs might pay completely different fees depending on their income, assets, or whether they keep or sell the family home. The result? A lot of uncertainty, and sometimes, unnecessary stress at an already emotional time.

Taking the guesswork out of aged care

Understanding how aged care fees work isn’t just about numbers, it’s about making confident decisions for yourself or someone you love. When you’re clear on what’s involved, you can plan properly, compare options fairly, and avoid surprises later on.

That’s exactly what our Financial Information Service is designed to help with.

We take the time to understand your personal situation and explain what each type of fee means for you, in plain English. We’ll walk you through what to expect upfront, what might change down the track, and how the new November fee updates could affect you or your family.

Whether you’re looking at residential aged care, home care, or just starting to plan ahead, we can help you feel more confident and in control of the financial side.

No jargon. No pressure. Just clarity.

We know money conversations can be uncomfortable. But we also know that with the right information, people feel empowered to make better, more confident decisions. Our approach is simple: we provide clear information, you decide.

You’ll come away with a clear picture of your options and what they’ll mean for your situation – no sales pitch, not a push to sign up for anything – just understanding.

Because when you understand the financial side of aged care, everything else starts to make more sense too.

Want more clarity about aged care costs?

If you’re feeling unsure about aged care fees or just want someone to walk you through it all, our team can help.

Chat with our team for clear, independent advice that helps you make confident care decisions.