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How much does aged care cost?

Costs vary for each person

The Australian Government subsidises a range of aged care services for eligible older people.

If you can afford to, you’re expected to help with the cost of government-funded services. How much you pay depends on:

  • your financial situation
  • how many services you receive
  • the types of services you receive
  • where you receive the care
  • the fees the aged care provider charges

Entry-level care in your home

You can receive entry-level support in your home and in the community through the Commonwealth Home Support Programme.

You are expected to contribute to the cost of the services you receive, if you can afford to do so. Any fees you are asked to pay will be agreed between you and the service provider before you start receiving services.

Find out more about Commonwealth Home Support Programme costs.

Complex care in your home

You can receive care in your home for more complex needs through a Home Care Package.

You may need to have an income assessment to work out what fees you need to pay. Your care provider may ask you to pay:

  • a basic daily fee
  • an income-tested care fee
  • fees for additional services not otherwise covered by your home care package

Find out more about:

Residential care in aged care homes

You can receive accommodation and 24 hour support in an aged care (nursing) home.

You may need to have an income and assets assessment to work out what fees you need to pay. Your provider may ask you to pay:

  • a basic daily fee
  • a means-tested care fee
  • accommodation fees
  • fees for extra and/or additional services or a higher standard of accommodation (if you choose them)

After you enter an aged care home, the staff will assess the level of care that you need.

Find out more about:

Short-term care

You can receive short-term care in your home, an aged care home or in the community.

You may have to pay a fee for each day you receive care. This fee is a percentage of the single person rate of the Age Pension. It’s higher if you receive the care in an aged care home.

Find out more about:

How residential aged care fees are controlled

Maximum amounts and caps

The Australian Government sets a maximum amount for daily fees and accommodation fees.

The Government also sets yearly and lifetime caps for care fees that are income-tested or means-tested. Once you reach these caps, your care provider cannot ask you to pay any more care fees.

Approval needed to charge more

Aged care providers must get approval from the Aged Care Pricing Commissioner if they want to:

  • increase their fees for extra services such as better accommodation and food
  • charge new fees for extra services
  • charge accommodation fees that are higher than the allowed maximum rate

Cost to the Australian Government

In 2017–18, the Australian Government spent over $18 billion on aged care. Of this total amount:

  • 67% was on residential care (over $12 billion)
  • 28% was on home care and support services (over $5 billion)

For more facts and figures, go to aged care research and reporting

Last updated: 
11 April 2019
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