Schedule of Fees and Charges for Residential and Home Care

When it comes to Aged Care services, one of the biggest considerations for older Australians and their families is the cost associated with care. Navigating the financial landscape of Aged Care can be complex. Therefore, it’s important to understand the Schedule of Fees and Charges for Residential and Home Care released by the Australian Government on 01 November 2025.

This comprehensive guide will shed light on the different components of these schedules, helping you to make informed decisions about Aged Care for yourself or your loved ones.

The Aged Care System in Australia

Australia’s Aged Care system is designed to offer subsidised support and services to senior Australians who may require assistance with daily living activities, health or personal care, and accommodation. However, while subsidised, these services do come with associated costs.

The Australian government provides subsidised support through Residential Aged Care and Home Care.

1. Residential Aged Care (also known as Aged Care Homes or Nursing Homes)

This includes services and accommodation provided in Aged Care Homes. It caters to older Australians who can no longer live safely and independently in their own home and require 24/7 care due to health or mobility issues.

2. Home Care

There are two streams of Home Care support available: the Commonwealth Home Support Programme (CHSP) and Support at Home, which commences on 1 November 2025 and replaces Home Care Packages. Home Care allows older Australians to receive support while continuing to live in their own homes. It provides various services like personal care, cleaning and gardening, and domestic assistance. Home Care services are tailored to the needs of each individual.

Fees and charges for Residential Aged Care

1. Basic Daily Fee

The Basic Daily Fee is a standard daily fee that everyone in Residential Aged Care must pay. It covers general day to day living costs such as meals, laundry, and cleaning services. The government sets this fee at 85% of the full Age Pension, which means that it is subject to adjustments in line with increases in the Age Pension. These adjustments occur every March and September.

The current Basic Daily Fee for Residential Aged Care is $63.57 (01 November 2025).

2. Means Tested Care fee

The Means Tested Care fee is an income and asset-tested fee that some individuals pay depending on their financial situation. The government takes into account an individual’s income, assets, and other factors to determine this fee. Those with higher income or assets are required to pay a higher means tested care fee.

3. Accommodation payment

In Residential Aged Care, you may have to pay an accommodation payment or contribution for your room. There are several ways in which you can pay for the cost of your room:

• Refundable Accommodation Deposit (RAD): an upfront, lump sum payment (likened to paying for your home outright). This amount is then returned to you or your estate once you are no longer living in the Home.
• Daily Accommodation Payment (DAP): a daily payment that accrues and does not need to be paid as a lump sum (likened to paying rent). Daily Accommodation Payments are not refunded once you are no longer living in the Home.
• Combination Payment: a combination of RAD and DAP, which allows you to pay part of the accommodation costs as a lump sum and the rest as a daily payment. The RAD portion is refunded once you leave the Home and the DAP is not.

The exact amount for the accommodation payment is determined by the Aged Care Home itself and is subject to government regulations. It’s essential to discuss accommodation payment options and costs with each Home you are considering. Just like buying or renting a property, the location, size and amenities available will determine how much you pay.

4. Extra or additional fees

Some Aged Care Homes offer extra service options that provide additional amenities and services beyond the standard level of care, such as Foxtel or other pay TV. These extra services come with an associated fee, and the costs can vary significantly between Homes. It’s important to enquire about these fees.

Learn more about Aged Care Home fees.

Fees and charges for Home Care

Under Support at Home, older Australians receive government-subsidised services with participant contributions that replace the former Home Care Package fee structure. Contributions are charged only for services actually delivered, vary by service type and a person’s means, clinical supports attract no contribution, a lifetime contribution cap applies across home care and the non-clinical component of residential care, services are paid in arrears, and participants receive clear monthly statements.

Participant contributions (replaces Basic Daily Fee)

• The basic daily fee does not apply under Support at Home.
• Participant contributions are calculated as a percentage of the approved price for services you receive.
• Clinical supports such as nursing and allied health have a 0% contribution; independence and everyday-living services have set contribution rates.
• Contributions are collected by providers for delivered services and appear on monthly statements.

Participant contributions by means and service type (replaces Income-Tested Fee)

• The income-tested care fee is replaced by service-based contributions that reflect both your means and the type of service.
• Rates differ for full pensioners, part pensioners and self-funded retirees, with hardship provisions available.
• A lifetime contribution cap applies across home care and the non-clinical component of residential care.

Package management fee

• There is no separate package management fee under Support at Home.
• Services are paid in arrears with transparent monthly statements that show charges, payments and balances.
• Your classification sets a quarterly budget that funds approved services.

Care management delivered by a care partner (replaces Care management fee)

Providers coordinate and claim only for approved, delivered services; any participant contribution is applied to those services in line with the rules.

Care management is provided by a care partner who works with you to set goals, plan services and review progress.

Care management sits within the Support at Home service model, with capped national prices commencing from 1 July 2026.

Understanding fee caps and income/asset thresholds

The Australian government has implemented fee caps and thresholds to ensure that individuals are not overwhelmingly burdened by the costs of Aged Care.

Means tested and income tested care fee cap

Both the means tested and income tested care fees have annual and lifetime caps. Once an individual reaches the annual cap, they won’t pay these fees until the next anniversary of the date they first began receiving aged care. If an individual reaches the lifetime cap, they won’t be required to pay any further means or income tested care fees.

November 2025 means and income tested care fee caps

Income and asset thresholds

The government sets income and asset thresholds to ensure that older Australians are only contributing toward the cost of their care if they can afford to do so.

The income threshold is $63,559.60 (November 2025). If your annual income is less than this, you will be subject to the first income tested fee cap and if it exceeds this amount, you are subject to the second income fee cap. If your annual income is less than $33,027.80 (November 2025), you will not be required to pay an income tested fee for your Home Care. 

There are two thresholds for the means tested care fee. The first is $210,555.20 and the second is $505,665.60 (November 2025). if your total assets are less than $63,000 (November 2025) you will not need to pay accommodation fees towards Residential Aged Care, but you will still be required to pay the Basic Daily Fee and any extra fees if they are applicable.

CareAbout is here to help!

The Schedule of Fees and Charges for Residential and Home Care is a vital resource for older Australians and their families trying to navigate types of Aged Care in Australia. However, there is a lot of information to get your head around and when you’re trying to make the right decision for yourself or a loved one, the last thing you want to be doing is sifting through government documentation.

Let CareAbout help. Our expert Care Advisers understand the costs and fees associated with Aged Care and are looking forward to helping you make a choice that’s right for your family. Call us today and get free, no-obligation access to our team of Aged Care Specialists.