Fees & Charges

When moving into an aged care home for permanent residential care, it is important to understand what fees you may have to pay, and whether you are eligible for government assistance with your accommodation costs. This information can help you make the right choice for your care needs and financial situation.

Everyone who moves into an aged care home agrees on a room price before moving in. The types of fees and how much you pay will depend on:

  • your income and assets, as assessed in your aged care means assessment
  • the level of care you require
  • the home you choose

As you consider NECH as an option for your aged care needs, we will offer a meeting with our onsite finance officer who will be able to discuss the funding models and how this applies to individual needs and circumstances.

What does the government contribute?

The Australian Government subsidises aged care homes across Australia to provide affordable, accessible care. Residential care subsidies and supplements are paid directly to your aged care home. 

The amount the government contributes is based on an assessment of your ongoing care needs once you have entered care. In addition, if your means assessment shows you have less capacity to pay, the government will contribute more. 

Care and accommodation costs

There are a number of costs associated with permanent care in an aged care home. The same costs also apply for palliative care in an aged care home.

If you moved permanently into an aged care home on or before 31 October 2025, your current resident fees and accommodation costs will stay the same while you remain in care – unless you opt in to the 1 November 2025 fee arrangements. For instance, if you pay a means tested care fee, you will continue to do so.

They include: 

  • Basic daily fee: An amount that everyone pays for daily living services they receive at the aged care home.
  • Means tested care fee: This is an amount that can be paid by people on the 1 July 2014 Fee arrangements towards the cost of their care This is based on your means Assessment.
  • Hotelling contribution: For residents on the New 1 November 2025 fee arrangements. A contribution that some people pay toward the cost of their care, determined by a means assessment.
  • Non-clinical care contribution: For residents on the New 1 November 2025 fee arrangements.  This fee contributes to personal care costs. This is based on your means Assessment
  • Accommodation costs: An amount that some people pay to contribute towards or cover the full costs of their room, depending on their means assessment.
  • Additional service fees: Fees for services that go beyond the minimum care and service requirements.

To learn more about the different types of accommodation costs and fees and how they are calculated, visit the My Aged Care website

Payment Options

Residents can choose to pay for their accommodation as a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination of both.

  • A refundable deposit is paid as a lump sum amount
  • A daily payment is calculated on the balance of the Refundable Accommodation Deposit outstanding and is calculated daily and billed monthly
  • A combination payment includes both a partial lump sum and daily charges (billed monthly)
New Accommodation Arrangements

If you first enter permanent residential aged care on or after 1 November 2025, the new accommodation arrangements will apply. These include:

  • Refundable Deposit Retention – If you pay a lump sum, your provider will keep 2% of your lump sum per year. After 5 years in care, no further retention amounts will be deducted.
  • Daily accommodation Payment (DAP) Indexing – if you pay by DAP, this amount will increase due to indexation on 20 March and 20 September each year.

Before making any decisions, we recommend you seek independent financial advice from an Aged Care specialist.

For more information about individual room fees, contact us on (08) 8366 8261 or email [email protected]