How much will you pay
Aged care costs (nursing home costs) are the range of fees and charges you need to pay to receive aged care services. The Federal government subsidise a range of aged care services in Australia, but if you have the means, you will be expected to contribute to your aged care costs.
Aged care costs vary depending on the nursing home and type of accommodation, but the Government has regulations in place to ensure everyone can afford to enter aged care.
Basic fees and costs
Before you ‘sign up’ for an aged care home (nursing home), you need to know what fees and costs you will be expected to pay – and what you can afford.
Aged care homes can charge you four types of fees and costs as described in 4.2 The Main Costs Explained.
In summary, these are:
- A Basic Daily Fee
- Hotelling supplement
- Non-clinical care contributions
- An accommodation cost
Plus:
- An optional Higher Everyday Living Fee
Main costs of aged care
The five types of fees and costs are explained in the detail in this section.
- A Basic Daily Fee
- Hotelling Supplement
- Non-clinical care contributions
- Accommodation costs
- An optional Higher Everyday Living Fee
Basic Daily Fee
The basic daily fee covers day to day living costs such as meals, laundry, cleaning and utilities like power and basic telecommunications.
The basic daily fee is set by Services Australia at 85 per cent of the single Age Pension.
Because the Age Pension is increased or ‘indexed’ twice a year to keep up with rising costs of living, the basic daily fee increases twice a year too.
The daily fee is the same for everyone, whether or not you receive the Age Pension.
Remember - You can never be charged more than 85% of the single age pension for your basic daily fee at a government subsidised aged care home.
As a guide, as of 20th September 2025, the maximum basic daily fee was: $65.55 per day.
Because it is tied to the Age Pension rate, this amount goes up twice a year on the following dates each year and you will be notified of the new fee each time:
- 20th March
and:
- 20th September
For some people, the basic daily fee will be the only fee they will need to pay.
Means-tested care fee
If you entered residential aged care before 1st July 2025, you may pay a means-tested fee, a fee for your day-to-day personal care and nursing costs depending on an assessment of your income and assets. Under the new system's 'grandfathering' arrangements and 'no worse off principle' the amount you pay will not increase.
Hotelling Supplements
Depending on the outcome of your means test, you may have to pay a fee towards your daily living costs such as the cost of meals, cleaning and laundry.
You will be required to pay the Hotelling Supplement if you have:
- assets of more than $238,000
or
- income of more than $95,400
or
- a combination of these amounts
The maximum Hotelling Supplement will be $12.55 per day.
Non-clinical Care Contributions
The government will pay for all your clinical care costs in residential aged care. If the means test requires you to pay the full Hotelling Supplement you may also be required to pay a Non-Clinical Care Contribution, which covers costs such as bathing, help with mobility and a program of activities and entertainment.
From 1st July 2025, the Non-Clinical Care Contribution replaces the means Test Care Fee.
The Non-Clinical Care Contribution is:
- 7.8% of your assets over $502,981 or
- 50% of your income over $131,279 or
- a combination of the two.
There is a daily limit on the non-clinical Care Contribution of $101.16.
There is a cap on the Non-Clinical Care Contributions of either:
- $130,000
or
- 4 years
whichever is reached first.
Accommodation Costs
The aged care home can charge a fee for the accommodation they provide. This covers the bricks and mortar and maintenance costs.
The fee is set by individual aged care homes and all homes must clearly advertise their accommodation price.
The accommodation fee will vary according to factors such as local property prices, the type and size of the room and amenities provided (eg. gym, swimming pool, gardens).
