Basic fees and costs
Before you ‘sign up’ for an aged care home (nursing home), you need to know what fees and costs you will be expected to pay – and what you can afford.
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View transcript of video hereAged care homes can charge you four types of fees and costs as described in 4.2 The Main Costs Explained.
In summary, these are:
- A Basic Daily Fee
- Hotelling supplement
- Non-clinical care contributions
- An accommodation cost
Plus:
- An optional Higher Everyday Living Fee
What you need to know:
- The Australian Government subsidises a lot of the cost of aged care but you will have to pay some of them, depending on an assessment of your income and assets.
- This assessment is done by the Services Australia or the Department of Veterans’ Affairs.
- You can choose not to have a means test but it is strongly recommended even if you are not counting on government support.
- Fees set by the government are increased twice a year – 20 March and 20 September – in line with increases to the Age Pension.
- You can download a copy of the current schedule of fees and charges at schedule of fees and charges here.
- If you can’t afford to pay for aged care services, the Commonwealth government will cover the costs of your government subsidised aged care home.
I have a question. I'm already an aged care resident but I've heard there's a new aged care system coming in. Will my fees change under the new system?
Under the new aged care system, existing aged care residents will have their fees 'guard fathered' which means how much you pay won't change. However, you can opt into the new system if you wish, but it's important to understand the financial consequences if you do. Speak to a trusted person who understands the financial implications before you decide.
Annie Donaldson
agedcare101 Registered Nurse and Carer
