Costs in Aged Care Homes
Aged care service costs and processes could often be complicated, we have summarised information to make the structure of fees and charges as clear as possible. Please see below for details and also you can download the brochure and forms from our website. If you're not sure what the best option for you is, or if you would like to talk to someone about your financial situation, please don't hesitate to get in touch at 9153 8224 or make a booking to visit our home.
Basic Daily Fee
- This is a standard amount set by the government that everyone in residential carepays,including both respite and permanent care.
- This fee goes towards care needs and living expenses such as clinical care, meals, andaundry.
- lt is set as a proportion of the aged care pension, equivalent approximately to 85% ofsingle Centrelink pension.
- The basic daily fee is indexed in line with increases to the age pension. lf the pensionamount increases, your aged care fees can also increase. The rates are published anoindexed twice yearly by the Australian Government.
Hotelling Supplement Contribution (HSC)
- If your income and assets exceed thresholds set by the Australian Government, you will also be asked to pay HSC.
- This is a fee payable on top of the Basic Daily Fee for those who being assessed that need to pay.
- A Centrelink Income and assets Assessment needs to be done prior to permanent admission so to determine how much HSC you need to pay.
Non-Clinical Care Contribution (NCCC)
- If your income and assets exceed thresholds set by the Australian Government, you will also be asked to pay NCCC.
- This is a fee payable on top of the Basic Daily Fee for those who being assessed that need to pay.
- A Centrelink Income and assets Assessment needs to be done prior to permanent admission so to determine how much NCCC you need to pay.
- Annual Cap and Life Time Cap for : There are annual and life-time caps that apply to NCCC.
Accommodation Fee
Aged care providers set a price for each room within a service, this is know as the accommodation fee. This amount is set by the aged care home, depending on the on type and its features. This price is published publicly and is available on our website as well as My Aged Care website for all OLC Care homes.
What if I can not afford to pay the accommodation fee?
If you are eligible, the government will contribute towards the accommodation fee for you. This is determined by the Centrelink Income and Asset Assessment.If you are verified for fully supported subsidy from the Government, the accommodation fee will not apply and the government will pay the aged care provider a daily rate towards the accommodation fee.
Some residents might be eligible for partially supported subsidy from the Government. This means you will need to pay a daily accommodation contribution and the Government will pay the aged care provider the rest of the daily rate towards the accommodation fee.
Payment Options
If you are verified to needing to contribute towards the accommodation fee, there are a few payment options for you to choose from:- 1. Refundable Accommodation Deposit (RAD)
- A lump sum payment that’s refundable upon your exit of service.
- The lump sum payment will be refunded to you within 14 days of receipt of a certified copy of Grant of Probate.
- 2. Daily Accommodation Payment (DAP)
- A daily payment calculated based on interest rate set by government at time of admission.
- Payment is non-refundable upon exit of service.
- 3. Combination Option
- A Part lump sum —— Part daily payment combination.
- If payment is partially by lump sum, then the remaining daily payment can, if re-quested, be withdrawn from the lump sum amount.
- The remaining lump sum balance is refundable upon exit of service.
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 keeps 2% of your lump sum per year. This amount is not refunded when you leave care. 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. Indexation does not apply to daily accommodation contributions (DAC) paid by residents eligible for government assistance with their accommodation costs.
Government Care Subsidy
The government pays a subsidy to aged care providers based on the care support that a person requires. Each person is assessed with respect to their care needs to determine the subsidy rate that will be paid.
If you choose not to have the Income and Means Assessment done by Centrelink, then the government will not pay the aged care provider the subsidy. This means you will be asked to pay the maximum fees and charges including the government subsidy to cover the full costs.
Estimator for Aged Care Costs
If you would like to know how much you might have to pay towards your aged care home costs, a fee estimator from My Aged Care can give you an estimate to help you plan.
Costs involved in Aged care can be complex. Speak to us about your financial situation and how we can assist.
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