The fees attached to residential aged care — a basic daily fee, a means-tested care contribution, and an accommodation payment — can look frightening, especially the lump-sum Refundable Accommodation Deposit. But Australia’s aged care system is built on the principle that no one should be denied care they need because they cannot afford it. A set of protections — hardship assistance, government contributions, caps and the RAD guarantee — sit underneath the headline fees. Knowing them removes a great deal of fear.
Financial hardship assistance
If paying your aged care costs would leave you unable to afford essentials like food, housing, clothing or medical care, you can apply to Services Australia for financial hardship assistance. If approved, the government pays some or all of the fees you cannot meet — this can apply to the basic daily fee, the means-tested care fee, and/or the accommodation cost. It is assessed on your genuine financial circumstances, including assets you cannot readily access. Hardship assistance exists precisely so that a temporary or structural inability to pay does not cost someone their place in care.
The low-means safety net
Separately from hardship, residents assessed as low-means through the means assessment have their accommodation paid, in full or in part, by the government. They are not asked to fund a room they cannot afford. Homes are required to keep a proportion of places available for supported residents, so being low-means does not shut you out of quality homes — ask each home directly how many supported places it offers.
The RAD guarantee
Families are often anxious about handing over a large Refundable Accommodation Deposit — sometimes several hundred thousand dollars — to a private provider. The reassurance: RADs are guaranteed by the Australian Government under the Accommodation Payment Guarantee Scheme. If a provider becomes insolvent and cannot refund your deposit, the government refunds it to you. The balance of a RAD is also refundable to the resident or their estate when they leave the home, less any amounts that were agreed to be drawn down. Your capital is protected.
The fee caps
The means-tested care contribution is subject to annual and lifetime caps. Once you reach a cap, you stop paying that contribution and the government covers the rest. This prevents open-ended care costs from consuming an estate without limit. As with all the protections here, the caps only work if your fees are correctly assessed and recorded — another reason to complete the means assessment promptly.
How to actually get help
The steps are practical: (1) complete the means assessment so your entitlements and low-means status are established; (2) if fees would still cause hardship, lodge a financial hardship application with Services Australia with evidence of your circumstances; (3) ask prospective homes how many supported (low-means) places they offer; (4) consider specialist aged care financial advice, which frequently pays for itself by structuring things so you qualify for more help and pay less. No one should walk away from needed care believing it is simply unaffordable without first testing these protections.
Short on time? Curalune Care Help (A$149, one-off) reads your situation and emails you an ordered shortlist of 3–5 suitable aged care homes — with contacts, why each one fits and a ready-to-send message — usually within 24 hours.
Finding homes that offer supported places for low-means residents is part of building the right shortlist — not every home has the same number, and it is worth targeting those that do.
Not sure where to start with the paperwork? Curalune Paperwork Help (A$199, one-off) maps the exact documents to gather, the right order of steps and ready-to-send messages for your case — delivered within 24 hours.
Frequently asked questions
What if I cannot afford aged care fees?
You can apply to Services Australia for financial hardship assistance. If paying the fees would leave you unable to afford essentials, the government can pay some or all of your basic daily fee, means-tested care fee and/or accommodation cost. Separately, low-means residents have their accommodation paid in full or part automatically.
Is my Refundable Accommodation Deposit safe?
Yes. RADs are guaranteed by the Australian Government under the Accommodation Payment Guarantee Scheme — if a provider becomes insolvent, the government refunds your deposit. The balance is also refundable to you or your estate when you leave, less any agreed drawdowns.
Can I get into a good home if I am low-means?
Yes. Homes are required to keep a proportion of places for supported (low-means) residents, whose accommodation is government-funded. Ask each home how many supported places it offers — the number varies, so target homes with more of them.
Is there a limit to how much I pay for care?
Yes. The means-tested care contribution has annual and lifetime caps; once you reach a cap you stop paying it and the government covers the rest. Completing the means assessment is what ensures these caps are applied.