The Basic Daily Fee Explained
The basic daily fee in aged care explained: what it covers, how it is set at 85% of the Age Pension, who pays it, and where to get help.
What the basic daily fee is
How much it is
What it covers
Who pays it
How it fits with other costs
If you cannot afford the fees
Getting clear numbers before you move
Frequently asked questions
How much is the basic daily fee?
It is set at 85% of the single basic Age Pension. As at 20 March 2026 it is $66.80 per day, roughly $24,000 a year. It is indexed twice yearly, on 20 March and 20 September, so always confirm the current rate before you rely on it.
What does the basic daily fee cover?
It covers day-to-day living costs in an aged care home: meals, cleaning, laundry, heating, cooling, utilities and general facilities. It does not cover your clinical care, your room (accommodation cost), or optional extras like premium room packages or lifestyle services.
Does everyone pay the basic daily fee?
Generally yes. Almost everyone entering permanent residential aged care pays it, regardless of income or assets, and it applies to residential respite too. It is the baseline, non-means-tested contribution. Other fees, like accommodation and care contributions, depend on your finances.
What if I cannot afford it?
You can apply for financial hardship assistance through Services Australia. If approved, the government can reduce or cover fees you cannot reasonably meet. You will need a cost-of-care calculation first and evidence of your income, assets and expenses to support the claim.