Costs And Fees
How Much Does Aged Care Cost In Australia?
Understand the main costs families can ask about before choosing an aged-care home.
Short answer
The cost of residential aged care in Australia depends on the room price, how accommodation is paid, the resident's fee arrangements, income and assets assessments, and any optional services. A full written fee schedule can make room comparisons easier before a family agrees to a room.
Which fee arrangements apply?
Entered on or before 31 October 2025 usually means the 1 July 2014 fee arrangements, unless the resident has opted in to newer arrangements. Entered from 1 November 2025 usually means the newer arrangements, although no-worse-off protections can preserve the older fee arrangements for some people. The fee arrangement affects whether the person may pay a means-tested care fee, or a hotelling contribution and non-clinical care contribution. Means status is set on entry to that home, but fee amounts can still change through indexation or changed means.
- 1 July 2014 fee arrangements: basic daily fee, accommodation costs, means-tested care fee where applicable, and higher everyday living fee if agreed.
- 1 November 2025 fee arrangements: basic daily fee, accommodation costs, hotelling contribution, non-clinical care contribution where applicable, and higher everyday living fee if agreed.
- Moving to a different aged-care home can mean a new means assessment.
Cohort note
Applies mainly to residents on the 1 July 2014 fee arrangements. If your parent entered residential care from 1 November 2025, check whether the newer hotelling contribution and non-clinical care contribution rules apply instead.
Why costs vary
Two families can see different costs for similar rooms because accommodation choices, personal finances, and government assessments can change the final mix of fees.
Questions to ask the provider
Before comparing homes, collect the same fee information from each provider.
- What is the advertised room price?
- What is the equivalent daily accommodation payment?
- Which fees or higher everyday living services are optional?
- What happens while the means assessment is pending?
Turn this into a family decision.
Folra can help model RAD/DAP scenarios and turn the numbers into calmer questions to discuss before anyone signs.
Start the free calculatorCheck the current rates
Folra keeps a separate rates page for the MPIR and basic daily care fee currently used in calculator examples.
View current ratesCommon questions
Is the room price the total cost?
No. The room price is only the accommodation component. Daily fees, assessed contributions, and optional services may also apply.
Sources
Rate and fee claims are checked against Australian Government sources where applicable.
Related guides
Disclaimer: Folra guides are educational only. They do not provide financial, legal, tax, or aged-care advice. Confirm current rules and consider independent advice before making decisions or signing agreements.
