What you pay in aged care
If you move into an aged care home from 1 November 2025, your costs are made up of up to four parts. Only the first is the same for everyone.
1. Basic daily fee
Everyone pays this. It's $68.93 a day, set at 85% of the single Age Pension, and covers meals, cleaning, laundry and power. It rises every March and September with the pension.
2. Hotelling contribution
A means-tested top-up towards everyday living costs, up to $22.15 a day. You only pay it once your means-tested amount is above the government's accommodation supplement of $73.73 a day. It has no time limit.
3. Non-clinical care contribution
A means-tested contribution towards help with bathing, dressing, getting around and activities, up to $109.45 a day. You only pay it if you already pay the full hotelling contribution. It stops after four years, or once you've paid $140,653, whichever comes first. Nursing and clinical care is fully paid for by the government.
4. Your room
If your means-tested amount is low, the government pays for your room, or most of it. Otherwise you pay the home's room price as a lump sum (RAD), a daily payment (DAP), or a mix. Use the RAD to DAP calculator to compare.
How the means test works
Services Australia works out a yearly amount from your income and from your assets, adds them, and divides by 364 to get a daily figure. That one number decides whether the government helps with the room and how much hotelling and non-clinical care contribution you pay. The full bands are on the 2026 fees and thresholds page.
For a couple, half of your combined income and assets is counted for each person. If one partner stays at home, the home isn't counted at all.
What happens to the family home
The home isn't counted while a partner, dependent child, or a carer or close relative who qualifies still lives there. Otherwise it counts, but only up to $219,858. A $1.5 million house and a $300,000 house are treated the same.
Selling turns the home into cash that is counted in full, which can move someone from having the room paid by the government to paying the full price. See selling vs keeping the home to compare both.
Common questions
How much does a nursing home cost in Australia in 2026?
Everyone pays the basic daily fee of $68.93 a day, about $965 a fortnight. Depending on income and assets you may also pay a hotelling contribution of up to $22.15 a day, a non-clinical care contribution of up to $109.45 a day, and the price of your room.
Is there a cap on aged care fees?
The non-clinical care contribution stops once you've paid $140,653 in total or after four years, whichever comes first. The basic daily fee, the hotelling contribution and room costs have no cap.
Does the Age Pension count as income?
Yes. The Age Pension, deemed income from savings, rent and super income streams all count. A full pensioner with modest savings is usually below the income free area of $36,455 a year.
My parent went into care before 1 November 2025. Does this apply?
No. People already in care stay on the older rules, with a means-tested care fee instead, unless they opt in. Opting in can't be undone, so get advice first.
Will paying a lump sum (RAD) change my fees?
Not your aged care fees: the lump sum still counts as an asset in the aged care means test. It does change the Age Pension, because a RAD isn't counted in the pension assets test.
How accurate is this calculator?
It follows the department's published formula and current rates, but it's an estimate. Only Services Australia can give an official assessment. It doesn't cover respite care, extra service fees, granny flat interests, special disability trusts or hardship help.
Where these figures come from
- Department of Health, Disability and Ageing: Schedule of fees and charges for residential care
- Department of Health, Disability and Ageing: Residential aged care fee scenarios
- My Aged Care: Aged care home costs and fees
Last checked 5 October 2026. Results are estimates, not financial advice. For an official estimate call My Aged Care on 1800 200 422.