Aged care placement - fees and charges

Common questions and concerns

While each family situation has a different set of requirements, there are a number of standard questions that seem to be asked by our family clients. We hope the answers provided here will help you in your aged care placement activities.

What are the main types of fees and charges that we will need to pay?

There are three types of fees that a resident of a residential aged care home (nursing home or hostel) may be asked to pay:

1. Basic daily care fees

For pensioners and part pensioners these can be no more than 85% of the maximum single rate pension. Self-funded retirees can be asked to pay a slightly higher rate. Important note: Some payments from the Department of Veteran's Affairs (DVA), e.g. the Disability Pension and the War Widows Pension, are not means tested income support payments. Residents receiving these allowances, unless they receive an income support payment as well, are considered to be self-funded retirees and can be asked to pay the basic daily care fee at the self-funded retiree rate and may also be asked to pay an income-tested fee. If a resident is in this position, he or she should test their eligibility for means tested income support with DVA.

2. Income-tested fees

Residents who entered permanent care after 1 March 1998 and who have private income may be asked to pay an income-tested fee. Exempt from income-tested fees are full pensioners, residents with dependent children, former prisoners of war who receive care at the high (i.e. nursing home) level, protected residents (those who were in care between 1/10/97 and 28/2/98), residents who die before the home is notified of their eligibility to pay income-tested fees, residents with the lowest care classification, and residents for whom a hardship determination is in force.

3. Accommodation bonds and accommodation charges

These are paid by residents whose assets are valued above a set amount (currently $40,500) on entry to permanent care. This set amount will change over time. Residents whose assets are valued below this amount cannot be asked to pay an accommodation bond or charge.

Accommodation bonds:

These may be levied on residents accepting a low care place (i.e. hostel care) and also on residents accepting an Extra Service Place regardless of their level of care. The amount of accommodation bond that can be requested is determined by market forces, however, residents must be left with assets of at least a set amount (i.e. currently $40,500) after paying their bond.

Accommodation charges:

These charges may be levied on residents accepting a high care place (i.e. nursing home care) if they hold assets in excess of currently $40,500. Residents with limited assets above this amount may pay a reduced charge. Residents in permanent high care prior to 1 October 1997 cannot be asked to pay an accommodation charge.

What are the current rates for these types of fees?

The current rates can be found here.

Send an enquiry if you need more information