How much does aged care actually cost?
If you’re starting to consider residential aged care for your Mum or Dad, you’re probably wondering how much it will cost - and if they can afford it.
Your loved one will only be charged what they can afford, and there are options to suit everyone.
The good news is that in Australia, everyone can afford residential aged care because the government provides assistance to people who don’t have enough funds. Let’s look at how residential aged care costs work.
What are the costs involved?
Residents contribute towards their accommodation and daily care through a schedule of accommodation and care payments:
Accommodation costs – To secure an aged care suite, residents need to pay a refundable accommodation deposit (RAD). The amount will vary depending on the room type and community. There are four different payment options to choose from:
Option 1: A once-off lump sum payment for the full RAD. This is refunded in full when the resident exits.
Option 2: A daily accommodation payment (DAP). This is a monthly interest charge on the amount of the unpaid RAD. The interest rate is set by the government and these payments are not refundable when the resident exits.
Option 3: A combination of RAD and DAP. The resident can opt to pay a part RAD deposit and then a daily payment on the unpaid RAD amount. Only the RAD deposit is refundable when the resident exits.
Option 4: Government assistance. An income and assets assessment will determine if you qualify for full government support for your accommodation, or whether you’ll be required to contribute.
Care and support costs – There are two daily care fees a resident is required to pay:
A basic daily care fee. This covers living expenses such as meals, laundry, personal and nursing care, and electricity. This fee is set by the Government and adjusted twice a year. The fee is standard in every Australian aged care community.
A means-tested daily care fee. This is an additional contribution towards the cost of a resident’s daily care. The amount of this fee is determined by a resident’s income and assets assessment.
More information
For more information, read our Aged Care Guide.
You can also estimate the amount your loved one may be asked to pay towards their care by visiting www.myagedcare.gov.au, searching for ‘fee estimator’ and completing the form. Some families also seek advice from a Financial Planner.
We have additional resources to help you with your aged care journey here [add link]. Read why residents love living at Tenterfield Care here, and why our team members love working with us here.
Got questions?
We understand that residential aged care costs can be confusing. That’s why our knowledgeable and friendly team is here to help you. We’ll guide you through the options, answer your questions and help you at every stage. We can also arrange a private tour of our community. Call us on (02) 6736 0300 or email us at info@tenterfieldcare.org.au.
