If you’re thinking about moving into Aged Care, it can sometimes be a little bit confusing to understand the costs involved. When looking into how much is Aged Care, you might have heard of different cost considerations, like daily fees, means testing and accommodation fees, to name a few.
At TriCare, we believe in making this journey as transparent and supportive as possible for you. So we’ve broken down the aged care costs below in a way that’s clear and easy to understand, so you have the information you need to make the best financial decision for your situation.
Breaking down Aged Care costs
Within Australia’s Aged Care system, there are four possible fees you may be required to pay. They are:
1. Basic Daily Fee
This is a standard fee everyone in Aged Care pays, covering day-to-day services like meals, cleaning and laundry. It’s indexed at 85% of the single retirement pension, making it manageable and within reach for many families. Based on the Current Full Age Pension (single) rate, it works out to about $71.40 per day.
2. Means-Tested Fees
The Hotelling Supplement Contribution (HSC) and the Non-Clinical Care Contribution (NCCC) are both means-tested fees. The HSC is an additional daily fee that helps cover the hotel-style services provided in aged care, such as meals, laundry, cleaning and general accommodation amenities. It supplements the standard basic daily fee to support the overall living environment offered by the facility.
The NCCC is a fee that contributes to non-clinical support services, including social engagement, lifestyle programs and general wellbeing activities. It helps fund the everyday assistance residents receive that sits outside clinical or medical care.
The Australian Government has a process in place to make Aged Care accessible to everyone, no matter how much money or assets you have, so this fee is only for those who can afford it. The amount you’re asked to pay will depend on your financial assessment, which is performed by Services Australia in most cases. We’ll cover that in a moment.
3. Accommodation Fee
This fee will vary depending on the type of accommodation and location. You also have flexible payment options – a lump sum up-front payment (called a Refundable Accommodation Deposit or RAD), daily payments (Daily Accommodation Payment or DAP) or a combination of both. These options mean you can pay in a way that works best for you. For example, a RAD (lump sum) of around $350,000 – $400,000 is realistic for a standard room. The comparable DAP (if you choose daily payments instead of RAD) would be $70 – $80 per day (depending on the agreed room price and interest rate at the time of admission).
4. Higher Everyday Living Fee (HELF)
The Higher Everyday Living Fee is an additional daily charge that supports the increased cost of providing essential day-to-day services in aged care, such as meals, cleaning, laundry and general household support. It helps facilities maintain higher service standards and meet rising operational costs beyond the basic daily fee. It provides an opportunity for residents to purchase additional goods and services beyond the minimum required. Based on goods and services only. Not currently offered by TriCare.
The first steps: getting assessed
If you’ve decided that Residential Aged Care is the best option for you, the first step is your Aged Care Assessment Team (ACAT) assessment. It’s an essential step to keep in mind when considering how long the process may take.
You can apply for the ACAT assessment through My Aged Care. This is an important test because it determines whether you will be eligible to access government-subsidised care services. An ACAT test involves:
- A discussion about your daily living needs, including mobility, personal care and household tasks.
- Questions about your medical history, current health conditions and medications.
- An evaluation of your mental and emotional health.
- A look at your home and any safety issues.
- Input from your carer or family members, if you want them involved.
- Recommendations for the types of care and services you may be eligible for.
It’s very important that you have your ACAT assessment booked in as soon as possible. You can book an emergency ACAT assessment within 48 hours, but a regular assessment can take up to six weeks, and then another two weeks to get the report.
Means testing for clarity on Aged Care costs
Understanding aged care fees can feel overwhelming, especially when different charges apply depending on your financial situation. Means testing helps work out what’s fair for you. It makes sure you’re only paying what makes sense for your circumstances.
What does it mean to do a means test (or assessment) for Aged Care?
A means assessment checks your income and assets to see if you can pay the full amount, a partial amount or if the Australian Government will cover some or all of your fees. You will need to give information like your bank balances, investments, property ownership, pension statements and other financial information in order to finish the assessment.
If your assessable income and assets are below certain levels set by Services Australia, you may be able to get government help under the aged care means assessment framework.
Now, let’s talk about actual Aged Care costs. Some of the costs of living in residential Aged Care are based on your means, usually determined by Services Australia or agreed between you and your Aged Care provider.
To access any subsidies you might be entitled to, you’ll be asked to submit an Aged Care Calculation with your cost of care form (SA457) Services Australia. You can complete this form online, print it, sign and send it to Services Australia with your supporting documents.
Services Australia will review your financial situation and decide whether you’ll be asked to contribute towards the cost of your care.
Your Home Care Package can cover Short-Term Care costs
If you’re applying for Short-Term (Respite) Care, you can sometimes use your current Home Care Package to help pay for a stay in a residential care facility. This can provide you with practical flexibility, allowing you to access higher-level support when needed without losing your ongoing services.
The Australian Government has transitioned to the Support at Home program, which is designed to simplify and strengthen in-home aged care. Under this program, older Australians now have access to a single, streamlined support system that brings together multiple existing programs while providing more personalised, flexible and coordinated services that help people live independently at home for longer.
To find out if you’re eligible for residential Short-Term Care, call Carer Gateway on 1800 422 737. People who qualify can receive Commonwealth funding for Short-Term Care for up to 63 days each financial year.
To Find out more about TriCare’s Short-Term Care click here.
Note: For most people, the means assessment is completed by Services Australia. However, if you receive a means-tested payment from the Department of Veterans’ Affairs (DVA), your assessment will be carried out by DVA instead.
Choosing the right Aged Care residence for you
Every Aged Care residence is unique, so it’s helpful to look around and find one that feels right for your needs, lifestyle and preferences.
Some residences are designed to support specialised or complex care needs, while others may be co-located within a retirement village or elderly care residence to keep couples close when their care requirements differ. These options mean you can choose an environment that suits your level of support, social needs and long-term goals.At TriCare, our Aged Care Specialist Team is equipped to ask the right questions and guide you through your options to help you find the residence that fits you best. They can also arrange a tour so you can get a feel for the community and facilities before making your decision.
Moving out: no fees or charges
If you decide to move out, whether it’s to another Aged Care Residence, in with family or back into your own home, there are usually no fees or charges. This ensures that the transition is smooth and stress-free.
Need some more help?
At TriCare, we understand that Aged Care is more than just a service – it’s about people, families and finding the right support at the right time. Our goal is to provide transparency, support and a sense of community, helping you navigate this important journey with confidence.
Our Aged Care Specialist Team is available to discuss the ACAT assessment process and answer any questions you may have about means testing and your aged care cost.
Get in touch or call us at 1300 TRICARE (13008742273) and let us support you in finding the right Aged Care Residence for you.
