Costs and means testing
What aged care actually costs in Australia.
Aged care costs in Australia are heavily subsidised by the government, but there are still fees — and they can be confusing. Here is the shape of it.
Three kinds of fees
- Basic daily fee — a flat amount everyone is asked to contribute (set as a percentage of the single Age Pension)
- Means-tested care fee — calculated by Services Australia based on income and assets, for people above certain thresholds
- Accommodation costs (residential only) — paid as a lump sum (RAD), a daily payment (DAP), or a combination
There are caps and safety nets
There are annual and lifetime caps on the means-tested care fee. People with very low income and assets can have their accommodation costs fully paid by the government — they’re called “fully supported residents.”
No one is supposed to be turned away from aged care because they cannot pay.
The means assessment
For most people, you’ll need to fill in a means assessment with Services Australia. This decides what fees apply. You can do it before or after you start receiving care, but doing it early helps you plan.
Get independent financial advice
Aged care financial decisions — especially around the family home, RAD vs DAP, and selling assets — can have long consequences. A specialist aged care financial adviser (independent, fee-for-service) is almost always worth it. The Financial Information Service at Services Australia is free and can help with the basics.
See all 53 guides in Care & end of life →
From bluetulipco.com/library/end-of-life/costs — printed 1 October 2026.
General information only — not a substitute for legal, medical, financial, or therapeutic advice. Read the full disclaimer.
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