Residential Aged Care Fees & Costs Explained

All residents must pay a standard Daily Care Fee to cover meals, cleaning, laundry, heating, and cooling. This fee is equivalent to 85 percent of the standard full aged pension ($61.96 a day at present). Like the aged pension, it is indexed with increases every March and September.

Good to know: The Daily Care Fee can be charged up to seven days before you move into residential aged care and must still be paid if you are on social leave or hospital leave from your aged care home.

Depending on your income and assets, you may also be required to pay for your accommodation in an aged care home. This comes in the form of a refundable lump sum, non-refundable daily payments, or as a mix of both (hybrid). Remember, we list the accommodation price for all BlueCare beds throughout Queensland.

There are a few thresholds that apply to government assistance here.

• If your income is less than $32,819.80 and your assets are below $59,500 you do not have to pay the Accommodation Fee at all.
• If your income is more than $82,425.72 a year and your assets more than $201,231, you will need to pay the full amount.
• If your assets or income sit between those two thresholds, you may be entitled to some government subsidies. Visit My Aged Care to find out more.

Lump sum

If you choose to pay the full lump sum when you leave Residential Aged Care your lump sum (less any deductions you agree with the aged care home) is refunded. The Australian Government guarantees this refund.

Good to know: If family members want to contribute to the full bed price (lump sum), it is recommended they seek legal advice because the refund is paid to the estate of the former resident.

Daily payment

If you do not pay a lump sum for the refundable Accommodation Fee, you can instead pay a non-refundable daily Accommodation Fee. It is non-refundable because it is charged at a rate intended to reflect the interest earnings on the price of the room – currently set at 8.38%.

For example, if a room cost $400,000, your daily fee would be charged at 8.38% of the $400,000 or $91.84 a day.

Good to know: The rate charged can change four times a year.

Hybrid fee

There is also the option to pay part of the lump sum and then make a smaller daily payment. This would be calculated at 8.38% on the remainder of the lump sum amount.

Good to know: The rate charged can change four times a year.

You may be required to help pay the costs of your individual healthcare needs, depending on your financial situation. The amount you are expected to pay increases in accordance with your wealth. But there is a safety net in place, with a yearly cap and a lifetime cap on the amount you have to pay.

The annual cap is currently $33,309.29 and the lifetime cap is $79,942.44.

Good to know: If you have been contributing to a Home Care Package for home care services prior to entering residential care, the money you have paid will count towards your annual and lifetime safety net.