Aged care costs

You contribute to the cost of services via a regular payment to the provider but don't cover the full cost. The remainder is covered by the federal government and will not impact your pension.

Services will only go ahead if you have agreed to the fee with your provider. If you are experiencing financial hardship, please discuss with your provider.

You can register to have your needs assessed and find a provider via the My Aged Care website.

A Home Care Package consists of the federal government contribution (the subsidy) and your contribution.

The fees you may be asked to pay include a basic daily fee, an income-tested care fee and additional fees.

There are four levels of Home Care Package, ranging from Level 1 (basic care needs) to Level 4 (high care needs).

Learn more about the costs here.

The current waiting list for Home Care Packages is almost 100,000 and will continue to climb unless immediate action is taken.

That's why National Seniors is calling on the government to strengthen home care services and implement urgent aged care reforms.

Learn more by visiting our campaigns page.

Short-term care can be provided for a few days or a few months at a time. There are three types:

• Restorative care - help with everyday tasks while you develop a longer term management plan
• Transition care - help to recover after a hospital stay
• Respite care - help to give you or your carer a break.

While the federal government subsidises the cost of short-term care, you may be asked to pay a maximum of:

• $10.75 per day if you receive care while living at home
• $52.25 per day if you receive care while living in a residential care facility.

If you want to remain at home but are not sure about the level of help you need, it is a good idea to discuss your options with a GP.

They may be able to organise a Care Plan or connect you with services in your area.

Learn more about home care options here.

Things can get a little complicated when it comes to aged care homes and fees. That's why we have a dedicated section to help you assess your options. Learn more here.

Here's a quick rundown of possible costs:

• Basic daily fee (this is set on 20 March and 20 September each year by the government and you pay directly to your provider).
• Means-tested care fee (covered by government subsidy)
• Accommodation (covered by government subsidy)
• Extra service fees (these are not covered by government subsidy)
• Additional service fees (these are not covered by government subsidy).

For more information on how much you will pay for cost of care and accommodation, read the section below titled 'How your assets and incomes affect residential care costs.'

More information on the other costs can be found here.

It is recommended that you seek independent financial advice from a qualified professional before making a decision. Financial hardship assistance is also available. Learn more here.

On top of your basic daily fee, you might have to pay a means-test care fee if your assets and/or income are assessed above a certain threshold. Your assets and income are used to determine the means tested fee.

You may also have to contribute to the cost of your accommodation when in care, but only if your assets and/or income are above a certain threshold. As a general guide:

• if you have income below $27,840.80 and assets below $50,500, the Australian Government will pay your accommodation costs
• if you have income above $70,320 or assets above $171,535.20, you will need to pay for the full cost of your accommodation, negotiated and agreed to with the aged care home
• if you need to pay for part of your accommodation, the Australian Government will pay the rest.

That includes the value of the family home.

However, the full value of the family home will not be included in the assets test if you don’t sell it. Instead a capped amount is included or the net market value of your house, if lower.

Your family home is not counted as an asset if either:

• your partner or dependent children are still living there, or
• a carer eligible for an Australian Government income support payment has been living there for at least two years, or
• a close relative who is eligible for an Australian Government income support payment has been living there for at least five years.

The value of your family home is not counted for two years for the assets test from the date you move into care.

If you move into residential care without selling your home (to pay for the lump sum required for accommodation), it will be exempt from the Age Pension assets test for two years from the date you move into care. The start date will vary if you are, or were, a member of a couple.