How do aged care costs work?

As the Australian Government funds providers to keep costs affordable, you won’t be asked to cover the full cost of services. You will make a contribution to your provider – if you can afford it – for as long as you receive services. There are no exit fees.

If you can’t afford to contribute towards your care, you won’t miss out on the help you need. You can talk to your provider about it.

Contributions you might have to pay 

Contributions will be different for everyone, and will be based on:

1. The type of service you receive
   1. Clinical supports: You will make no contribution for clinical services such as nursing and physiotherapy. This is fully funded by the government.
   2. Independence: You will make a moderate contribution for independence services such as personal care and transport.
   3. Everyday living: You will make the highest contributions for everyday living services such as domestic help and gardening.
2. Your income and assets 
   The percentage of your contribution will depend on your financial circumstances. This is determined by an income and assets assessment. Full pensioners will make the lowest contribution, and self-funded retirees who are not eligible for a Commonwealth Seniors Health Card (CSHC) will make the highest contribution. 
    
3. When you were approved for services
   There are different arrangements if you were approved for:
   1. a Home Care Package on or before 12 September 2024
   2. a Home Care Package or Support at Home after 12 September 2024.  

How to work out your contributions  

Getting an estimate 
Use our Support at Home fee estimator if you want to work out how much you might need to pay for Support at Home services and plan your finances accordingly.  

Once that’s done, you can use the Find a provider tool to compare provider costs.

Finding out your actual contribution rates 
This will be determined through your income and assets assessment. For full and part pensioners, this will be based on information already provided for your pension assessment.

• your fee arrangements based on your entry date and circumstances
• your income and assets, as assessed in your aged care means assessment
• the aged care home you choose
• the room price you negotiate with your provider. 

Fee arrangements

If you enter residential aged care on or after 1 November 2025, one of 2 different types of fee arrangements will apply to you, and may include the following fees and contributions:

• 1 November 2025 fee arrangements – basic daily fee, hotelling contribution, non-clinical care contribution, higher everyday living fee
• 1 July 2014 fee arrangements – basic daily fee, means tested care fee, higher everyday living fee.

Learn more about aged care costs if you entered care between 2014 and 2025.

Types of fees in an aged care home

The different types of fees you may have to pay are:  

• basic daily fee – an amount that all aged care residents pay for the everyday living services they receive at the aged care home
• contributions based on your means assessment – this can include hotelling contribution and non-clinical care contribution (1 November 2025 fee arrangements) or means tested care fee (1 July 2014 fee arrangements)
• accommodation costs – an amount that some people pay to contribute towards or cover the full costs of their room, depending on their means assessment
• optional costs – the higher everyday living fee, which replaces the extra service fee and additional service fees, enables aged care residents to pay for and receive higher standard of services. 

Working out how much to pay

Getting an estimate
Use our aged care home fee estimator to understand the different fee types and calculate how much you might have to pay. You will need to answer some questions about your personal and financial situation to get an estimate.  

This tool lets you estimate fees based on 1 November 2025 or 1 July 2014 fee arrangements.

Once you've estimated your fees, you can use the Find a provider tool to compare room costs and services and find a room within your budget. 

Finding out your actual costs
You will need an aged care means assessment and a fee advice letter from Services Australia. Your means assessment will let you know:  

• whether you are eligible for assistance with your accommodation costs
• what your hotelling contribution and non-clinical care contribution will be (1 November 2025 fee arrangements), or what your means tested care fee will be (1 July 2014 fee arrangements).  

There are a few things to keep in mind for each type of short-term care: 

Transition care

Providers can request information regarding your ability to make a contribution (within reason). However, your access to transition care will not be affected by your ability to pay fees. 

Respite care

Residential respite

When you receive residential respite care in an aged care home, you won’t have accommodation payments, hotelling contributions, non-clinical care contributions, or means tested care fees. However, you will be asked to pay a basic daily fee and sometimes a booking fee.

The level of care you have been approved for will:

• determine the level of respite subsidy your provider will receive
• ensure you receive care appropriate to your needs.

What you pay for residential respite care is discussed and agreed upon between you and the provider and is set before you receive the services. 

Community respite

If you’re eligible for community respite, it will be provided under the Commonwealth Home Support Program (CHSP), so the fees you pay fall under the CHSP guidelines. This is usually a daily fee. 

Emergency respite

If you need emergency respite care, contact Carer Gateway on 1800 422 737.

Further information on emergency respite is available on the Carer Gateway website.