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Fees Guide

Residential aged care costs and fees explained

Fees are set by the government and means-tested — what you pay depends on your income and assets. Understanding them upfront avoids surprises.

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6 min readUpdated April 2026Free for families
Means-tested
Fees depend on income & assets
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The short version

Residential aged care fees are set by the government and means-tested — meaning what you pay depends on your income and assets.

There are several fee types, and understanding them upfront avoids surprises. Most families find the structure clearer once they break it into its parts.

The main fee types

Fee type 1
The basic daily fee
All residents pay this
Everyone in residential aged care pays the basic daily fee. It is set by the government as a percentage of the aged pension and covers day-to-day living costs — meals, laundry, and utilities. The rate is reviewed periodically by the government.
The exact rate is indicative and subject to government review. Confirm the current rate with the facility before signing.
Fee type 2
The means-tested care fee
Depends on your finances
This is an additional contribution toward your care costs, based on an assessment of your income and assets. Not everyone pays this — it depends on your individual financial situation. The government assesses your circumstances and determines your contribution. There are annual and lifetime caps on how much you can be required to pay.
Cap amounts are set by the government and indexed periodically. Check current cap figures with your adviser or the government contact line.
Fee type 3
Accommodation costs
Varies by facility
If you are assessed as able to contribute toward your accommodation, you may pay an accommodation fee. This can be structured as a lump sum (a refundable accommodation deposit, or RAD), a daily accommodation payment, or a combination of both. For those who cannot afford to contribute, the government covers accommodation costs. Amounts vary significantly by facility and room type.
RAD amounts and daily payment equivalents are indicative and vary by facility. Lump sums are generally refunded when you leave.

What's included vs what may be extra

Your fees generally cover core care and accommodation. Additional services may be charged separately — always confirm with the facility before signing.

Typically included
Meals and nutrition
Accommodation (room and common areas)
Personal care (bathing, dressing, grooming)
Basic nursing care
Laundry and linen
May be charged extra
+
Allied health services (physiotherapy, podiatry)
+
Hairdressing and beauty services
+
Organised outings and social activities
+
Specialist medical services
+
Premium room features or higher-tier room selection

Getting financial advice

Residential aged care costs are complex — particularly accommodation decisions involving lump sums. A financial adviser who specialises in aged care can help you model the options and understand the impact on your estate.

This is separate from WithSally's role. We help families find the right facility — we do not provide financial planning advice. We will always recommend seeking specialist financial advice before committing to an accommodation arrangement.

WithSally is always free for families. We are paid by the facility when you sign a Resident Agreement — you never pay us directly.

How WithSally helps

We walk you through what to expect financially, help you understand what questions to ask facilities, and make sure you are not caught off guard by fees that were not clearly disclosed upfront.

We also connect you with the right facility for your loved one's care needs — location, specialist support, and the feel of the place all matter as much as the fees.

How WithSally helps

Want to understand what you'll pay?

We can help you navigate the fees and find a facility that fits your needs — free, always. An adviser will call back within one business day.

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