How much does Aged Care in Australia Cost?

Due to there being multiple fees of varying costs due to personal circumstances, it can be difficult and confusing to figure out just how much aged care costs and how the process works.


For permanent care, where an individual lives full time in an aged care facility, there are three different costs:

  1. Daily Care Fee
  2. Means Tested Care Fee
  3. Accommodation Payment Fee


Daily Care Fee

The Daily Care Fee is set by the Australian Government and is a flat fee that all aged care residents are expected to pay. The amount charged is based on 85% of the annual basic aged care pension. This fee covers basic costs for a resident’s living expenses such as food, cleaning and utilities


Means Tested Care Fee

The Means Tested Care Fee is determined by Services Australia. The initial defaulted cost varies across providers until the actual rate is advised. An Asset & Income Assessment (SA457) from Centrelink will determine whether someone is eligible to have any accommodation costs or the Means Tested Fee covered by Services Australia. If this rate changes based on the assessment, the balance will be fixed up and repayments will be made back to an individual if they have been overpaying or there will be more due if their means tested fee is determined too be higher than the default rate.


Accommodation Payment Fee

There are three ways to pay the Accommodation Payment Fee which covers the cost of a room. This includes:

  • Refundable Accommodation Payment (RAD)
  • Daily Accommodation Payment (DAP)
  • Hybrid Accommodation Payment


RAD = Refundable Accommodation Payment. This is the cost of the room, which varies. Paying the full or partial amount will lower the cost of the daily fees, and upon discharge the full amount is refunded back to the estate of the resident. If the RAD cannot be paid (or only a portion), then a DAP will be paid instead.


DAP = Daily Accommodation Payment. This is the cost of the interest on the room price. The interest rate is aligned with the set interest rate by the Government. When accepted into an aged care village, you are locked into the current interest rate at the time of transitioning to permanent care. Upon discharge, no amount paid towards the DAP is refunded back to the estate of the resident.


The Hybrid Accommodation Payment is when someone pays part of the RAD and then pays the DAP interest on a smaller principle amount.


Club Scalabrini

At Scalabrini, we can also have a fee called Club Scalabrini. This care fee covers costs for the services Scalabrini provides outside of minimal care.


Therefore, if you’re looking to put your loved one into aged care at one of our Scalabrini villages, the costs include:

  • Daily Care Fee
  • Means Tested Care Fee
  • Daily Accommodation Payment OR Refundable Accommodation Payment
  • Club Scalabrini


To enquire further about the exact costs that these fees incur based on the unique situation of you or your loved one, please contact our informative staff at 1800 722 522 or