Residential aged care in Australia is funded partly by the government and partly by the resident, and the fees changed under the new Aged Care Act that started on 1 November 2025. There are generally four parts: the basic daily fee (a set percentage of the Age Pension, around A$63 a day), a means-tested care contribution (based on your income and assets), an accommodation payment, and — depending on the home — a hotelling contribution for everyday living services.
The accommodation payment: RAD or DAP
You can pay for your room as a Refundable Accommodation Deposit (RAD) — a lump sum that is refunded (less any agreed deductions) when you leave — or as a Daily Accommodation Payment (DAP), a rental-style daily amount, or a combination of both. RADs are commonly in the range of A$400,000–A$550,000 at many homes, though they vary widely.
The means assessment
Services Australia works out how much you contribute through an income and assets (means) assessment. There are annual and lifetime caps on care contributions, and full pensioners on low means are protected. Ask each home for a written breakdown for your situation.
A ready-to-send message
Hello,
we are looking into a residential aged care place for my parent and would like to understand the costs.
Could you send a written estimate of the basic daily fee, means-tested care fee, RAD/DAP and any hotelling contribution for our situation?
Do you accept residents who are fully supported (low means) as well as those paying a RAD?
Thank you,
[Name]
[Phone]
How to use this guide in practice
Don’t read this as general information — use it as a worksheet. Write down the details of the person who needs care, the current limits of the situation at home, the monthly budget, the documents you already have, whether they’ve registered with My Aged Care and had an assessment, and who you’ve already spoken with. Then turn every unclear point into a specific question. A family that arrives with a clear picture usually gets more useful answers than one calling under stress with scattered information.
Keep one simple rule: anything about admission, cost, funding, waitlists and whether a home fits must be confirmed directly with the aged care home or the competent authority serving your area. This guide prepares the search — it does not replace official decisions.
Want a clear shortlist before you start calling?
If you don’t know which aged care homes to contact first, Curalune Care Help can prepare an ordered shortlist of 3–5 suitable homes — with Star Ratings, contacts, useful links and a ready-to-send enquiry.
The service helps you organise the search.A$109, one-off. If you don't receive at least 3 homes matching the area and criteria you gave us, we refund you in full. It does not replace the home’s own assessment or the My Aged Care process, and it does not guarantee admission, price or a room.
Important limit
Curalune offers practical help with the search and orientation. Admission, pricing, room availability, eligibility and the final assessment always rest with the aged care homes and the competent authorities (My Aged Care, Services Australia for the means assessment, and the Aged Care Quality and Safety Commission).
Paying less is mostly a paperwork problem
The advertised room price is only part of the picture. What a family actually pays is set by the income and assets assessment at Services Australia — it decides the means-tested care fee and how much of the accommodation cost the government covers. Lodge it before a room is offered, not after: doing it late costs weeks at the worst possible moment. Two things families miss: if paying the fees would cause genuine hardship you can apply for financial hardship assistance, and the choice between a lump sum (RAD) and a daily payment (DAP) can be changed within the first 28 days after entry.