Aged Care Fees Explained: Every Cost Type
Aged care fees explained: every cost type across home and residential care, from participant contributions to the basic daily fee, RAD and DAP.
Two settings, different fees
Home care fees: participant contributions
Residential fee 1: the basic daily fee
Residential fee 2: the means-tested care fee
Residential fee 3: accommodation (RAD and DAP)
Residential fees 4: the new contributions
Frequently asked questions
What fees do you pay for aged care?
At home under Support at Home you pay participant contributions towards the services you use. In residential care you may pay a basic daily fee, a means-tested care fee, accommodation (RAD or DAP), and, for newer residents, a hotelling supplement contribution and non-clinical care contribution.
What is the basic daily fee?
It's a fee paid by everyone in residential aged care, covering day-to-day living costs like meals and cleaning. It's set at 85% of the single basic Age Pension — indicatively around $66.80 per day in 2026 — and updated in March and September each year.
What's the difference between a RAD and a DAP?
Both pay for your room in residential care. A RAD is a refundable lump sum, returned (less agreed deductions) when you leave. A DAP is a daily rental-style payment instead of a lump sum. You can also pay a combination of the two.
What are the new aged care contributions?
For people entering residential care from 1 November 2025, two means-tested contributions can apply: a hotelling supplement contribution towards everyday living costs, and a non-clinical care contribution towards non-clinical care, each capped daily. Residents already in care before the reforms are…