Aged-care costs: separate the room from the care

Accommodation: lump sum, daily payments or a mix

A refundable accommodation deposit (RAD) is the agreed lump-sum accommodation price for a person paying the full accommodation cost. A refundable accommodation contribution (RAC) applies where the means assessment establishes a contribution with government assistance. Daily accommodation payments or contributions are called DAP and DAC. Daily payments are not refundable deposits.

The appropriate option depends on the means assessment and agreement. Request the actual room’s published maximum, negotiated price and dated payment schedule. Do not treat a maximum advertised RAD as an all-in price or a requirement to pay everything upfront.

Source: Accommodation options and room-price rules ↗

Daily charges, assessed contributions and extras

Your costs can also include daily living charges, means-assessed contributions and optional additional services. The applicable fee arrangements depend on entry history and transition protections. Confirm the fee categories, assessment outcome and current rates with My Aged Care and Services Australia rather than applying one generic formula to everyone.

Source: Current and earlier care-fee arrangements ↗

Refundable does not always mean returned in full

For people first entering permanent residential aged care on or after 1 November 2025 who pay accommodation partly or wholly as a RAD or RAC, accommodation retention is 2% a year calculated on the daily balance, for up to five years. Other permitted deductions can also affect the remaining balance. Earlier care-fee protection does not, by itself, resolve accommodation-retention eligibility.

Transfers, returning residents and opt-in circumstances need an individual check. Do not use our retirement-village deferred-fee calculator for aged care.

Source: Retention, deductions and accommodation rules ↗

Ask for a budget you can actually compare

• Which room and fee arrangements are quoted, and when were they checked?
• What must be paid upfront, what is charged daily, and what can be deducted later?
• What changes under the means assessment or if the payment mix changes?
• Which optional services can I decline, and what are their separate charges?
• What happens when I transfer, leave or die, and what documents are needed?

Use the official fee information and obtain independent financial advice before deciding to sell, retain or transfer a home. No property, pension or estate recommendation is made here.