Aged care services, costs and eligibility explained  

How much you have to pay for aged care depends on:

• the type of aged care services you need – whether in-home care or, residential aged care
• the aged care provider you choose
• your financial situation. 

Depending on the above, you may need to undergo an assessment of your income and/or assets (called means testing). Although the government subsidises aged care in Australia, you’re expected to contribute to the cost of your care if you can afford to. 

From 1 November 2025, the aged care system introduced new fee arrangements for both Support at Home services and residential aged care. The changes generally increased the contribution required, particularly for those with the financial capacity to contribute more towards their care costs. However, grandfathering provisions were introduced so that many people who were already approved for or receiving Home Care Package services or in residential aged care, could continue under previous fee arrangements.

If you are receiving services under the Support at Home program, you may be required to make a contribution towards some services. Contributions are generally calculated as a percentage of the cost of the service received, with the percentage depending on the type of service and the person's income and assets. 

If you’re entering a residential aged care home, some of the fees you’ll be asked to pay are determined by your means-tested amount. This is calculated by Services Australia and includes both your assessable income and assets. 

Your means-tested amount includes your financial and other assets including (but not limited to) bank accounts, shares, term deposits, income streams, super (if you are over age pension age), investment properties, household contents, and personal effects. 

For residential aged care, your home is excluded from aged care means testing if it’s occupied by your partner. It may also be excluded if it’s occupied by a ‘protected person’ such as your carer or family member who meets specific criteria. If your home is not excluded, the government caps the amount that is included in the means tested amount calculation. As at 1 July 2026 the capped value is $214,884.00. 

To see if you’re eligible for subsidised aged care you’ll need to be assessed through the government’s MyAgedCare service. 

To qualify for an assessment, you generally need to be aged 65 or older (50 or older for Aboriginal or Torres Strait Islander people) and answer some questions online or over the phone about how much help you need with everyday tasks. 

Based on the information you provide you may be referred for an assessment to better understand your support needs. Assessments are generally done in person, at your own home. 

The assessment helps determine the type and level of support that best meets your needs, whether that is entry-level assistance through the Commonwealth Home Support Program (CHSP), more comprehensive care through Support at Home, or residential aged care if you can no longer live independently at home.

Under the Commonwealth Home Support Program

Under this program, aged care providers receive funds from the federal government to keep costs affordable. There is no means test for this program but you may be expected to make a contribution, agreed with your provider, for as long as you receive services. 

Under the Support at Home Program

Under the Support at Home program you may be asked to contribute towards the cost of some services. The amount you pay depends on your financial circumstances and the type of service provided. 

There is no contribution for clinical care services, while contributions for independence services generally range from 5% to 50% of the service cost and contributions for everyday living services generally range from 17.5% to 80%.

• Clinical care (0% contribution) includes services such as nursing, physiotherapy and occupational therapy. 
• Independence services (5% to 50% contribution) include services such as personal care, transport and social support. 
• Everyday living services (17.5% to 80% contribution) include services such as cleaning, meal delivery, gardening and home maintenance.

Grandfathering arrangements may apply to those approved for or receiving a Home Care Package at 12 September 2024.

If you enter residential aged care under the post-1 November 2025 fee arrangements, there are up to five types of fees and contributions that may apply: 

• Basic daily fee
• Hotelling contribution
• Non-clinical care contribution
• Accommodation costs
• Higher everyday living fee (optional)

Grandfathering rules apply for those who were already in residential aged care on 1 November 2025 or who were approved for or receiving a Home Care Package at 12 September 2024.

Basic daily fees

Every resident of a residential aged care home can be asked to pay a basic daily fee to help cover the costs of daily living. This fee is set at 85% of the maximum daily amount of the single basic Age Pension ($66.80 per day as at 1 July 2026). 

Hotelling contribution

Some residents may be required to pay a Hotelling Contribution, which helps cover day-to-day living costs in the aged care home. The amount is determined by a means assessment completed by Services Australia.  The maximum fee payable is $8,084 p.a

Non-clinical care contribution

Some residents may also be required to pay a Non-Clinical Care Contribution (NCCC) towards personal care and support services. The contribution is means tested and is generally only payable by residents with higher financial capacity. The NCCC is generally payable until the earlier of reaching the lifetime cap or four years from the date of entry into residential aged care. The maximum fee payable is $39,171 p.a

Accommodation costs

When entering an aged care home, you’ll need to agree on a room price. Whether or not you need to pay the agreed amount will depend on your means assessment. 

• If you’re not eligible for government assistance with your accommodation costs (not ‘low means’), you’ll pay the agreed room price as an accommodation payment.
• If you’re eligible for government assistance (‘low means’), the government will pay some or all of your accommodation costs to your provider. However, you may be asked to pay an accommodation contribution based on your means assessment. 

If you need to pay an accommodation payment, you can pay either as a refundable accommodation deposit (RAD), or as daily rental payments, or by a combination of the two. 

If you decide to pay your accommodation payment as a RAD, it is fully refundable when you leave the aged care home or is returned to your estate if you die. 

Higher Everyday Living Fee

A Higher Everyday Living Fee may apply if you choose to receive optional services or amenities that go beyond the standard care and services provided by the aged care home.