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How can I afford aged care?
The Australian Government takes measures to make aged care more affordable and accessible.
FEES AND CHARGES- WHATS CHANGING FROM 1 NOVEMBER 2025
As we transition to the new Aged Care Act from 1 November 2025, the Australian Government will introduce updated arrangements for how aged care fees and charges are structured. These reforms are part of broader changes to strengthen the aged care system and ensure greater fairness, transparency, and consistency in how residential care services are funded and delivered.
If you entered care as a permanent resident before 1 November 2025, you will remain under the current system (known as Grandfathered arrangements), unless you choose to opt into the new rules.
The changes apply to four key areas of residential care fees and charges: the Basic Daily Care Fee, Means Tested Care Fee, Accommodation Payments, and Additional Services (which will transition to the new Higher Everyday Living Fee.
Further information is available below.
The Palm Lake Care Customer Experience Team can guide you through each step, tailored to your individual circumstances.
Understanding the fees and charges associated with aged care is made easier by the knowledgeable Palm Lake Care Customer Experience Team, who will explain them in a simple yet comprehensive manner, using our Quoting Tool.
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Refundable Accommodation Deposits shown may not apply to you based on your affordability
Each person entering permanent care will have their income and assets assessed by Services Australia- either directly or through the submission of a Combined Income and Assets Assessment Form.
Permanent Residential Aged Care Request for a Combined Assets and Income Assessment
or
Residential Aged Care Property details for Centrelink and DVA customers
Services Australia will provide you with a Fees Summary using the outcomes from the Assessment.
If you entered care before 1 November 2025, there will be no change to your accommodation charges or rules under your current Residential Care Agreement. However, if you choose to leave permanent care and remain at home for more than 28 days, you will no longer be eligible under the Grandfathered arrangements.
Should you later return to care, the new fees and charges (effective 1 November 2025) will apply.
Low Means
You pay the Basic Daily Care fee and the government will pay for the balance of your care and accommodation costs.
Partly Supported (Govt contribution)
You pay the Basic Daily Care fee PLUS a contribution towards your accommodation costs, a Daily Accommodation Contribution. The Government will fund the balance of the care and accommodation costs related to the specified care and services required by law.
Non-supported
If your income and/or assets are above a financial threshold, you will pay the Basic Daily Care fee, the accommodation costs-a Refundable Accommodation Deposit and a Means Tested Care fee.
The very best 24/7 care and support.
Fees and payments
- Basic Daily Fee
- Means Tested Care Fees
- Accommodation Payment
Basic Daily Fee
Everybody contributes to the day-to-day living expenses such as meals, cleaning and laundry.
- Indexed at 85% of Standard Aged Pension
- Pensions continue to be paid into nominated bank account, and billed monthly
- Also applies for respite stays, payable in advance of admission via credit card or bank transfer.
Means Tested Care Fees
A contribution that some people pay toward the cost of their care, determined by a means assessment.
Means Tested Care Fee (MTCF)
Services Australia calculates this fee based on your personal income and assets.
Residents who are already in care before 1 November 2025 will remain on the current MTCF system unless they choose to opt into the new structure.
For new residents entering care on or after 1 November 2025, the MTCF will be divided into two parts:
- Hotelling Contribution
This helps aged care homes meet the cost of services such as catering, cleaning and gardening. From 1 November 2025, residents who can afford it will contribute towards some or all of the Hotelling Supplement. The government will continue to pay the rest, including the full Hotelling Supplement for those who are unable to afford to contribute.
Fee: up to $22.15 per day (subject to change).
- Non-Clinical Care Contribution
The government will now fully fund all clinical care costs in aged care homes.
A new Non-Clinical Care Contribution (NCCC) will be introduced to cover things such as bathing, mobility assistance and lifestyle activities. Those who can afford it will make a contribution towards their NCCC based on their means assessment.
A lifetime cap will mean residents will no longer have to pay the NCCC once they reach $130,000 (indexed) in total contributions, or after 4 years — whichever comes first. Fees paid under the Support at Home Program also count towards the lifetime cap.
To find out how much you might have to pay under the current funding arrangements, go to the My Aged Care webpage : fee estimator tool – it can give you an estimate to help you plan.
Accommodation Payment
An amount that some people pay to contribute towards or cover the full costs of their room, depending on their means assessment.
What are Accommodation Costs, and how do I pay them?
New Residents from 1 November 2025
Accommodation costs are an amount that people pay to contribute towards or cover the full costs of their room depending on their means assessment. You can pay in two ways:
- Refundable Accommodation Deposit (RAD): A lump sum payment that’s refundable when you leave, minus any amounts used for other aged care costs. RAD Retentions (introduced by the Australian Government from 1 November 2025) allows providers to retain 2% annually of the RAD paid up to 10% over 5 years from the initial payment date. The retention is calculated daily and deducted monthly.
- Daily Accommodation Payment (DAP): A daily payment option if you prefer not to pay a RAD or want to combine both. The DAP is non-refundable and calculated based on the RAD amount and a government-set interest rate. On the 20 March and 20 September annually, the DAP will be indexed in line with the Consumer Price Index (CPI).
For pricing, please contact our Customer Experience Team on 1800 246 677
There are three ways you can choose to pay for your accommodation explained below.
The 3 payment options
1
A lump sum Refundable Accommodation Deposit (RAD)
2
Rental style Daily Accommodation Payment (DAP)
3
Combination part lump sum and part ongoing payments
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Our Customer Experience Team can help with information tailored to individual circumstances. We can give you peace of mind.