Step 4

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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View transcript of video here

Summary of tasks in this section:

Check once completed

  • 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

STEP 4.1

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...

STEP 4.2

What are the main costs of an aged care home?

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

STEP 4.3

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...

STEP 4.4

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...

STEP 4.5

How is my family home assessed?

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

STEP 4.6

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...

STEP 4.7

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.

STEP 4.8

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

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

STEP 4.9

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?

STEP 4.10

Am I entitled to financial hardship assistance?

How to go about applying for financial hardship assistance.

Looking for aged care?

Did you know it could be 13 weeks or more to secure an aged care home?

agedcare101 makes aged care easy with 9 steps to an aged care home. You’re likely feeling the pressure to do something now but it’s equally important to invest the time to complete each of the steps and get the best result.

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A special thanks to our contributors

Jill Donaldson


Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.