Understanding the cost of Residential Care can be confusing, which is why we've put together some simple resources on this page to help you.
Residential aged care fees changed on 1 November 2025 under the Aged Care Act 2024. These changes affect new residents only. Existing residents, or those who entered care before 1 November 2025, will continue under their current fee arrangements unless they choose to switch.
Learn more: Understanding Fees from 1 November 2025
Key Aged Care Costs Explained
It is important that you fully understand the different fees and charges you may need to pay, before signing up for any residential care services. There are several costs associated with permanent care and palliative care in an aged care.
1. Basic Daily Care Fees
This fee helps pay for your day-to-day services such as meals, cleaning, facilities management, and laundry. You pay this fee directly to your aged care home, generally on a monthly basis. The fee applies for every day you are a resident, including days when you might be away overnight—for example, on holiday or in hospital. The basic daily fee is set at 85% of the single person rate of the basic age pension. The government updates it on 20 March and 20 September each year in line with increases to the age pension. Prices are published on the Department of Health, Disability and Ageing website.
2. Means Tested Care Fees
This fee is an extra contribution that some people pay, as determined through a means assessment. It is an ongoing fee towards the cost of your person and clinical care. The means tested care fee is different for everyone, and not everyone will have to pay it. If you do need to pay it, Services Australia will let you know the amount once you enter care Your means tested care fee does not remain fixed when you enter an aged care home; it can change over time.
a. Do I need to pay a means tested care fee?
You can use the fee estimator to get an idea of:
- The basic daily fee
- Your means tested care fee, and
- Whether you may be eligible for assistance with your accommodation costs.
To know more about the fees and charges for residential aged care, please visit:
- Schedule of fees and charges for residential and home care
- Factsheet on understanding fees for aged care homes
3. Accommodation Payment
Everyone entering an aged care home needs to agree on a room price in writing with their provider before they enter care. Whether or not you need to pay the agreed amount will depend on your means assessment with Services Australia. As a general guide:
- If you are eligible for government assistance (referred to as low means), the government will pay some or all of your accommodation costs to your You will be asked to pay an accommodation contribution if the government does not pay the full amount.
- If you’re not eligible for government assistance with your accommodation costs (not low means), you will pay the room price you agreed to with your aged care home as an accommodation payment.
The amount you contribute is calculated by Services Australia based on your income and assets.
a. What are my accommodation payment options?
You have three options as to how you can pay for your accommodation.
Depending on the outcome of your Means Tested Assessment, you can choose to pay either a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination of both.
If you don’t make a choice, or your Means Tested Assessment is not yet finalised (or your means are not disclosed), you will be required to pay via Daily Accommodation Payments (DAP) until your assessment is complete.
b. Refundable Accommodation Deposit (RAD)
A lump-sum payment of the accommodation cost. If this is paid, Catholic Healthcare is entitled to retain 2% of the RAD, capped at 5 years. Under your accommodation and service agreement, we may also deduct other amounts from the RAD,
e.g. unpaid contributions. Otherwise, the balance of the RAD is refunded after you leave the residential care home.
c. Daily Accommodation Payment (DAP)
A regular payment spread over time, equivalent to the RAD plus interest on unpaid parts of the RAD amounts. The interest rate is set by the Australian Government. DAPs are indexed twice annually.
d. Combination Payment
A payment option consisting of a part RAD payment supplemented with a DAP e.g. 50% RAD + 50% DAP. Catholic Healthcare is entitled to retain 2% of the RAD, capped at 5 years.
- non-refundable daily payments, or
- a combination of both
e. Refundable Accommodation Deposit (RAD) Retention
Aged care providers can retain 2% per annum of the lump sum payment (RAD/RAC balance). This deduction applies for a maximum of 5 years. A total maximum retention of 10% of the initial lump sum payment over the five-year period. This means the amount refunded to the resident (or their estate) when they leave the home will be the original RAD minus any agreed deductions (like daily accommodation payments) and this new retention amount.
Please note, we can only accept a RAD once you have received a final Means Tested Assessment or have a Means Not Disclosed Status.
Learn more: Accommodation payments and contributions for residential aged care
4. Other Costs
a. Enhanced Services
Our residential care homes offer a range of Enhanced Services that you may choose to purchase. These services are designed to provide extra support, comfort, choice, and control. Our Enhanced Services go beyond the minimum care and service requirements. These include social outings, wellbeing programs, additional in-room extras, and a range of options. For more information, please speak with our friendly team on 1800 225 474.
b. Pharmacy
Residents are required to pay for the cost of all prescribed medication, where the Catholic Healthcare contracted pharmacy is utilised, Catholic Healthcare will meet all packaging and delivery costs to the Home.
We’re here to help
Catholic Healthcare remains committed to providing support to those in financial need. Contact our friendly team at 1800 225 474 to learn more about your options and get assistance tailored to your needs.
If you would like more information about the Aged Care Reforms and changes that may impact you, please speak with our team to understand what applies to you or read more about the Aged Care Reforms here.
Find residential care homes near you
Residents can choose from 41 residential care homes across New South Wales and South East Queensland, ranging in size, style and price.
All of our residential homes offer high-quality facilities in warm, friendly welcoming environments where residents are sure to feel right at home.
What can you expect when you move into a Catholic Healthcare residential home?
We understand that adjusting to living in a residential aged care home can signify a major change in lifestyle and so it is important to have time to adjust to this change. This will likely impact you’re your family and loved ones. Catholic Healthcare understands this and will be here every step of the way.
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Acknowledgement of Country
Catholic Healthcare acknowledges the Traditional Custodians of the lands on which we live, work, and care. We pay our respects to Elders past and present and honour the enduring connection of Aboriginal and Torres Strait Islander peoples to Country.