How do I calculate aged care costs?

You might have already begun to look at the costs associated with moving to an aged care home (nursing home).  If you haven’t, now is the time. 

An important point to note is that you will never be denied care because you can’t afford it.


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In this section you will learn:




  • What fees and costs you might have to pay
  • What the different costs are for
  • How costs are calculated
  • What’s involved in the combined income and assets test


What are the basic aged care fees?

Before you ‘sign up’ for an aged care home (nursing home), you need to have a good idea of what fees and costs you will be expected to pay – and what you can afford.


What are the main costs of an aged care home?

The four types of fees and costs are explained in detail in this section.


How do I complete an income and assets test?

If you want to go into a Commonwealth-subsidised aged care home (nursing home), and you want the government to contribute to your care costs, you MUST have an income and assets test.


What do I need for the income and assets test?

This requires you to provide details of your personal financial situation to work out if you should contribute to the costs of your care and accommodation and, if so, how much.


How is my family home assessed?

For the combined income and assets assessment, the family home is treated differently to other assets.


What debt details do I need to provide on the income and assets test?

You will be asked to provide information about any debts you have. Generally, any debt secured against a particular asset is deducted from the value of that asset.


What are the options for my contribution to age care costs?

Once you know the result of your income and assets assessment, you will know whether you are expected to contribute.


How do I calculate my daily accommodation payment (DAP)?

Quickly convert a RAD to a DAP to save you having to do the maths.


What are my financial options to move into an aged care home?

If you haven’t got a family home or don’t want to sell it, what options do you have?


Am I entitled to financial hardship assistance?

How to go about applying for financial hardship assistance.