The Real Costs of Aged Care in Australia (2026)
What families actually pay — and what the government covers. A practical guide to understanding aged care fees, from $0 CHSP services through to $700,000+ residential accommodation deposits.
Last updated: March 2026 | Sources: Department of Health and Aged Care, My Aged Care, Aged Care Financing Authority, Services Australia
Quick Cost Comparison
Here's a snapshot of what different types of aged care cost. The range depends on your parent's income and assets — more detail on means testing below.
| Care Type | Typical Weekly Cost (To You) | Government Contribution | Wait Time |
|---|---|---|---|
| CHSP (entry-level home support) | $0–$15 per service | Covers most of the cost. Client pays a small contribution per visit (e.g., $10 for 2 hours of domestic help). | 2–6 weeks after RAS assessment |
| Home Care Package Level 1 | $0–$35/week | ~$9,500/year. Basic daily fee: up to $12.71/day (2025–26). Income-tested fee may apply. | 1–3 months |
| Home Care Package Level 4 | $12–$420/week | ~$57,000/year. Basic daily fee: up to $12.71/day. Income-tested fee: up to $35.29/day for higher income. | 3–12 months (can be longer) |
| Residential Aged Care (standard room) | $350–$2,450/week | Significant subsidy. You pay basic daily fee ($60.86/day) + means-tested care fee (if applicable) + accommodation. | 1–6 months depending on location and room type |
| Residential Aged Care (refundable deposit) | $200,000–$700,000+ (lump sum, refundable) | The deposit (RAD) is fully refundable when your parent leaves care. Alternatively, pay as a daily rental (DAP). Can combine both. | Payable within 6 months of entering care |
Important: These figures are indicative. Actual costs depend on your parent's income and assets (assessed by Services Australia), the provider they choose, and the level of care needed. All dollar figures are in AUD and reflect 2025–26 rates.
Home Care Package Costs Explained
Home Care Packages provide a coordinated bundle of services to help your parent live at home. There are four levels based on care needs. Your parent chooses their own provider and has a say in how the funding is spent.
Annual budget: ~$9,500 (government contribution)
Basic daily fee: Up to $12.71/day ($88.97/week) — most providers charge this
Income-tested fee: $0–$7.79/day depending on income assessment
What it covers: Light domestic assistance, social support, transport to appointments, basic personal care, podiatry, and minor home maintenance.
Average wait: 1–3 months from approval to assignment
Annual budget: ~$16,700 (government contribution)
Basic daily fee: Up to $12.71/day ($88.97/week)
Income-tested fee: $0–$7.79/day depending on income assessment
What it covers: Regular domestic help, personal care assistance, community nursing visits, allied health (physio, OT, podiatry), Meals on Wheels, and social group activities.
Average wait: 3–6 months from approval to assignment
Annual budget: ~$36,500 (government contribution)
Basic daily fee: Up to $12.71/day ($88.97/week)
Income-tested fee: $0–$35.29/day depending on income assessment
What it covers: Daily personal care, regular nursing, medication management, assistive technology (personal alarms, mobility aids), home modifications, respite care, and care coordination.
Average wait: 6–9 months from approval to assignment
Annual budget: ~$57,000 (government contribution)
Basic daily fee: Up to $12.71/day ($88.97/week)
Income-tested fee: $0–$35.29/day depending on income assessment
What it covers: Extensive personal care, daily nursing, complex medication management, dementia support, assistive technology, major home modifications, overnight care, and full care coordination.
Average wait: 3–12 months from approval (highest demand, longest wait)
Interim support while waiting for a package
If your parent is approved for a higher-level package but waitlisted, they can accept a lower-level package in the interim. For example, approved for Level 4 but offered Level 2 — accept it, start receiving services, and upgrade when Level 4 becomes available. They also remain eligible for CHSP services during the wait.
Commonwealth Home Support Programme (CHSP) Costs
CHSP is the entry-level home support program — lighter touch than Home Care Packages. Services are heavily subsidised, with clients paying a small contribution. There are no income or asset tests for CHSP, but a Regional Assessment Service (RAS) assessment is required.
| Service | Typical Client Contribution | What's Included |
|---|---|---|
| Domestic Assistance | $5–$15 per visit | Vacuuming, mopping, bathroom cleaning, kitchen cleaning, laundry. Usually 1–2 hours per visit, fortnightly. |
| Personal Care | $5–$10 per visit | Help with showering, dressing, grooming, and toileting. Usually 30–60 minutes per visit. |
| Meal Delivery (Meals on Wheels) | $8–$12 per meal | Hot meals delivered to the home. Available daily in most metro areas. Special diets (diabetic, soft, culturally appropriate) available. |
| Transport | $5–$15 per trip | Door-to-door transport for medical appointments, shopping, and social outings. Usually with volunteer drivers. |
| Social Support (individual) | $5–$10 per visit | Companion visits, help with shopping, assistance with technology, letter writing, and community access. |
| Nursing | $0–$10 per visit | Wound care, medication management, health monitoring, continence assessment, and chronic disease management. |
| Allied Health | $0–$15 per session | Physiotherapy, occupational therapy, podiatry, dietetics, speech pathology. Usually limited sessions per year. |
Note: Client contributions are set by each provider and are not mandatory. If your parent genuinely cannot afford the contribution, providers must still deliver the service. Discuss financial hardship directly with the provider — most will waive or reduce fees.
Residential Aged Care Costs
Residential aged care (“nursing homes”) has the most complex fee structure. There are up to four separate fees your parent may pay, depending on their financial situation.
1. Basic Daily Fee (everyone pays this)
Set at 85% of the single basic Age Pension. Currently $60.86 per day ($426.02/week, ~$22,200/year). This covers daily living costs: meals, cleaning, laundry, heating/cooling, and furniture. All residents pay this regardless of income or assets.
For pensioners: This is effectively deducted from their pension, leaving them a small “personal allowance” for personal items (currently ~$30/fortnight from the pension supplement).
2. Means-Tested Care Fee (income and asset dependent)
Assessed by Services Australia based on your parent's income and assets (excluding the former family home in most circumstances). This fee contributes to the cost of care services (nursing, personal care) rather than accommodation.
| Resident Type | Means-Tested Care Fee | Annual Cap (2025–26) |
|---|---|---|
| Full pensioner (low assets) | $0/day | N/A |
| Part-pensioner | $0–$271.49/day | $33,309.10/year |
| Self-funded retiree | $0–$271.49/day | $33,309.10/year (lifetime cap: $79,941.76) |
Key: There is both an annual cap and a lifetime cap on the means-tested care fee. Once the lifetime cap is reached, the government covers the full cost of care for the remainder of the resident's stay.
3. Accommodation (the biggest variable)
This is the cost of the “room” — and where the biggest financial decisions lie. There are three ways to pay:
Option A: Refundable Accommodation Deposit (RAD)
A lump sum paid upfront. Fully refundable when your parent leaves care (minus any agreed deductions). Think of it like a bond. Typical range: $200,000–$700,000 for metro areas. Premium rooms can exceed $1 million.
Pro: No ongoing accommodation costs. The deposit is refundable. Con: Ties up a large amount of capital. Usually funded by selling the family home.
Option B: Daily Accommodation Payment (DAP)
A daily rental payment instead of the lump sum. Calculated as the RAD amount multiplied by the Maximum Permissible Interest Rate (MPIR), divided by 365. For a $400,000 RAD at 8.34% MPIR: approximately $91.40/day ($639.80/week).
Pro: No large upfront cost. Con: Ongoing cost that is not refundable. Can be very expensive over time.
Option C: Combination (RAD + DAP)
Pay part as a lump sum and the rest as a daily payment. For example, $200,000 RAD + DAP on the remaining $200,000. This gives flexibility — keep some capital liquid while reducing the daily cost.
Pro: Flexible. Balances capital preservation with lower daily costs. Con: More complex to calculate and manage.
Full pensioners: If assessed as a “low means” resident, the government sets a maximum accommodation contribution (currently $60.86/day) and covers the rest. Your parent will not need to pay a RAD.
4. Extra Service & Additional Fees
Some facilities offer “Extra Service” rooms with higher-quality accommodation, food, and amenities. These carry an additional daily fee — typically $20–$100/day on top of all other fees. Additional services (hairdressing, newspapers, phone) are charged separately.
Example: What does residential care actually cost?
Full Pensioner (low assets)
- Basic daily fee: $60.86/day
- Means-tested care fee: $0
- Accommodation: $0–$60.86/day (gov. subsidised)
- Total: ~$426–$852/week
Part-Pensioner ($400K assets)
- Basic daily fee: $60.86/day
- Means-tested care fee: ~$50/day
- Accommodation: DAP ~$91/day (or $400K RAD)
- Total: ~$1,413/week (or $777/week with RAD)
Self-Funded Retiree ($1M+ assets)
- Basic daily fee: $60.86/day
- Means-tested care fee: up to $271.49/day
- Accommodation: $500K RAD or DAP ~$114/day
- Total: $928–$3,125/week
The Means Test: How Your Assets Affect Fees
Services Australia assesses your parent's income and assets to determine what fees they pay. The assessment happens automatically when they apply for aged care services through My Aged Care. Here's how it works.
| Situation | Assets Considered | Impact on Fees |
|---|---|---|
| Full Age Pensioner, renting | Savings, superannuation, investments. No home to assess. | Lowest fees. Basic daily fee only. No means-tested care fee. Government-subsidised accommodation in residential care. |
| Full Pensioner, homeowner (home still occupied) | Home value exempt if spouse, dependent child, or protected person lives there. Savings, super, investments counted. | Usually low fees. Home exemption keeps assessed assets low. Basic daily fee applies. Means-tested care fee usually $0 or minimal. |
| Part-Pensioner, homeowner (home vacant) | Home value counted up to a cap ($201,231.20 for 2025–26) plus savings, super, investments. | Moderate fees. Home partially assessed increases means-tested care fee. Accommodation contribution higher than full pensioner. |
| Self-funded retiree, homeowner | All assets including home (capped), super, investments, shares, managed funds, investment properties (full value). | Highest fees. Full means-tested care fee likely. Full accommodation cost. But lifetime cap ($79,941.76) limits total means-tested fees. |
The Family Home Exemption — Key Rules
- • Protected person lives there: If a spouse, dependent child, carer who has lived there 2+ years, or close relative who has lived there 5+ years remains in the home, the home is fully exempt from the means test.
- • Home is vacant: The home is assessed at its market value, but capped at $201,231.20 (2025–26) for means testing purposes. Even a $2 million home is only counted at $201K.
- • Home is rented out: Rental income is counted as income. The home value is still capped at $201K for asset purposes.
- • Home is sold: Sale proceeds become assessable assets at full value (no cap). This can significantly increase aged care fees. Get financial advice before selling.
Hidden Costs Families Don't Expect
Beyond the headline fees, these are the costs that catch families off guard. Budgeting for aged care means accounting for these extras.
Gap Fees for Allied Health
Medicare covers GP visits but allied health (physio, podiatry, dietetics) often has gap fees of $20–$80 per session. Home Care Packages can cover these, but the package budget depletes faster. Out-of-package allied health adds up quickly — a weekly physio session can cost $2,000–$4,000/year in gaps alone.
Medications Not on PBS
Pensioners pay $7.70 per PBS prescription (2025–26), but some medications are not listed. Nutritional supplements, certain eye drops, and some pain medications can cost $20–$100/month out of pocket. In residential care, the facility may not stock your parent's specific brand.
Continence Aids
The Continence Aids Payment Scheme provides ~$650/year, but actual costs for moderate-to-severe incontinence can be $1,500–$3,000/year. In residential care, the facility provides basic supplies, but upgraded products (better absorbency, skin protection) are often family-funded.
Equipment Hire & Purchase
Wheelchairs, walkers, shower chairs, hospital beds, and pressure-relief mattresses. Some can be funded through HCP or NDIS, but there are often waitlists. Buying outright: wheelchair $200–$2,000, hospital bed $1,500–$5,000, pressure mattress $500–$3,000.
Respite Care Costs
When the primary carer needs a break, respite care (residential or in-home) fills the gap. Government subsidises 63 days of residential respite per year at the basic daily fee ($60.86/day). Beyond that, full fees apply. In-home respite through HCP is limited by package budget.
Transport to Appointments
Regular medical appointments, specialist visits, and hospital check-ups require transport. If your parent can't drive, each taxi trip costs $15–$50 even with subsidies. Community transport has limited availability. Over a year, transport can cost $1,000–$3,000.
Family Travel Costs
If you live in a different city from your parent, regular visits add up: flights, accommodation, hire cars, time off work. Families managing aged care from interstate commonly spend $3,000–$10,000/year on travel alone, not counting lost income.
Time Off Work
The Carer's Leave Act provides 10 days of unpaid carer's leave per year, but managing an elderly parent's care — attending ACAT assessments, meeting providers, hospital visits, financial appointments — often requires significantly more time. The financial impact of reduced work hours is rarely factored into aged care budgets.
How to Reduce Aged Care Costs
There are legitimate strategies to manage and reduce aged care costs. The key is planning early — ideally before your parent needs care.
1. Get a Centrelink Assessment Early
Even if your parent doesn't receive a pension, registering with Services Australia (Centrelink) ensures they receive the correct means assessment. Many self-funded retirees are paying more than they need to because they haven't had their fees properly assessed. The assessment is free and can be done online, by phone (13 23 00), or in person at a Service Centre.
2. Consult an Aged Care Financial Advisor
Specialist aged care financial advisors can analyse your parent's situation and recommend the most cost-effective approach. For example, whether to pay a RAD or DAP, whether restructuring assets could reduce the means-tested care fee, or whether keeping vs selling the family home is better financially. A good advisor saves their fee many times over. The Aged Care Financial Advisors Association (ACFAA) has a directory at acfaa.com.au.
3. Apply for Financial Hardship Provisions
If your parent genuinely cannot afford aged care fees, providers are required to accept them regardless. The government's hardship provisions mean that no one can be denied care due to inability to pay. Contact the Department of Health and Aged Care on 1800 200 422 to discuss hardship provisions.
4. Negotiate Accommodation Costs
RAD/DAP amounts are published but some facilities will negotiate, especially if they have vacancies. Compare published RADs across similar facilities in the same area using the My Aged Care website. A $50,000 reduction in RAD saves ~$11.40/day in equivalent DAP. Some facilities offer “partially supported” rooms at lower rates.
5. Combine Services Strategically
Using both CHSP and a Home Care Package can maximise support. CHSP services (e.g., Meals on Wheels at $10/meal) may be cheaper than using HCP funds for the same service (which come out of the package budget and may include provider administration fees of 15–30%). Ask your care coordinator to optimise the mix.
6. Use Technology to Delay Residential Care
Every month your parent stays at home instead of entering residential care saves $2,000–$10,000+ depending on their circumstances. Technology like personal alarms ($30–50/mo), daily companion calls ($4–$69/mo), smart home sensors ($20–$40/mo), and telehealth monitoring can extend independent living by months or years. Many of these can be funded through Home Care Packages.
Free Financial Advice
You don't need to figure this out alone. These services are free and can help your family navigate the financial side of aged care.
| Organisation | Phone | Service |
|---|---|---|
| Financial Information Service (FIS) | 13 23 00 | Free financial guidance from Services Australia. Can explain how aged care fees are calculated, how assets affect pension entitlements, and the impact of selling the family home. Seminar program available. |
| My Aged Care | 1800 200 422 | General information about aged care fees, assessment processes, and available services. Can connect you with local providers and explain fee structures. Interpreter services available (131 450). |
| Aged Care Financial Advisors Association (ACFAA) | acfaa.com.au | Directory of accredited aged care financial advisors. Not free (typical cost $2,000–$5,000 for comprehensive advice), but specialist knowledge can save $10,000–$50,000+ over the course of care. |
| National Debt Helpline | 1800 007 007 | Free financial counselling for people struggling with debt or financial hardship. Can help families who are financially stressed by aged care costs, dealing with estate issues, or managing their parent's finances. |
| Older Persons Advocacy Network (OPAN) | 1800 700 600 | Free advocacy for people receiving or seeking aged care. Can help resolve disputes about fees, quality of care, or access to services. Independent of providers and government. |
| Carer Gateway | 1800 422 737 | Support for people caring for elderly family members. Includes free counselling, emergency respite funding, peer support groups, and coaching on navigating the aged care system. Available 8am–5pm weekdays. |
Related Reading
Government Funding for Daily Calls
How to fund technology through aged care packages
Caring for Elderly Parents from a Distance
Practical guide for long-distance carers
Elderly Care Services Melbourne
Complete local service directory
Elderly Care Services Sydney
Region-by-region guide for NSW families
Elderly Care Services Brisbane
Comprehensive directory for QLD families
Signs Your Parent Needs Help
24-point assessment checklist
Give Them Connection. Give Yourself Peace of Mind.
Start your free 14-day trial today. No credit card required.
Start Free Trial