Aged care fees, made clear
Aged care costs are confusing, and the rules changed in November 2025. Here is how residential fees work in Australia, with the parts that matter explained simply. When you are ready, we will sit down and work out exactly what it means for your family.
The four parts of an aged care fee
Almost every fee is built from the same handful of parts. Once you can see them laid out, the whole thing gets a lot less daunting.
Basic daily fee
A daily fee that every resident pays towards everyday living, such as meals, laundry and cleaning. It is set by the Australian Government as a percentage of the age pension and changes when the pension does.
Means-tested care fee
An extra contribution towards the cost of your care. Whether you pay it, and how much, depends on an income and assets assessment carried out by Services Australia or the Department of Veterans’ Affairs. Many residents pay little or nothing.
Accommodation cost
What you pay for your room. This can be paid as a refundable lump sum (a RAD), a daily payment (a DAP), or a combination of both. Accommodation is government-regulated and based on room size.
Everyday living fees
Optional additional services some residents choose, such as certain extras above the standard offering. These are always optional and explained up front, never a surprise.
RAD or DAP, explained
RAD Refundable Accommodation Deposit
A refundable lump sum you pay for your room, like a bond. It is returned in full when the resident leaves, less any amounts you have agreed to draw from it, and it is government-guaranteed up to the legislated limit.
DAP Daily Accommodation Payment
A daily rate for your room instead of a lump sum, a bit like rent. You can also split the two, paying part as a RAD and the rest as a DAP. We will help you decide what suits you.
Indicative accommodation costs
The figures below give families a rough sense of accommodation costs by room type. They are not a quote.
These are third-party-listed figures, not prices published by The Willows. Accommodation is government-regulated and based on room size, and the new November 2025 arrangements may change what applies to you. We will confirm your current costs with you in person before anything is agreed.
Indicative Figures sourced from third-party listings and shown only to give a sense of scale. Your actual costs depend on your room and your means assessment, and will be confirmed with you.
Three steps to knowing your costs
The Willows does not run the government assessments, but we will help you navigate every step and make sense of what comes back.
An ACAT assessment
Register with My Aged Care and arrange a free ACAT assessment. This confirms the level of care your loved one is eligible for. The Willows does not run these assessments, but we will help you understand the process.
A means assessment
Complete an income and assets assessment with Services Australia (Centrelink) or the Department of Veterans’ Affairs. This determines your means-tested care fee and any help you may receive with accommodation.
We sit down together
Bring it all to us. A member of the family will walk you through exactly what your costs would be at The Willows, clearly and patiently, with no pressure to decide.
Fees, answered simply
How are aged care fees worked out?
Fees are made up of a basic daily fee that everyone pays, a means-tested care fee based on your income and assets assessment, and an accommodation cost based on your room. Your personal fees depend on an assessment by Services Australia or the Department of Veterans’ Affairs, so they are different for every family. We are happy to walk you through your situation.
What is a RAD?
A RAD is a Refundable Accommodation Deposit, a lump sum you pay for your room. It is fully refundable when the resident leaves, less any amounts you have agreed can be drawn from it. It is guaranteed by the Australian Government up to the legislated limit.
Can I pay daily instead of a large lump sum?
Yes. Instead of a RAD lump sum you can pay a DAP, a Daily Accommodation Payment, which is a daily rate for your room. You can also pay part as a lump sum and the rest daily. We will help you weigh up what suits your circumstances.
Will Centrelink look at our income and assets?
Yes. Services Australia (Centrelink) or the Department of Veterans’ Affairs carries out an income and assets assessment to work out your means-tested care fee and any assistance with accommodation. This is a separate step from the ACAT care assessment.
What changed on 1 November 2025?
New aged care fee arrangements took effect on 1 November 2025. Depending on your means assessment, fees may now include a basic daily fee, hotelling and non-clinical care contributions, accommodation costs, and optional higher everyday living fees. We can explain how these apply to you and point you to the right Services Australia or DVA assessment.
Does someone need Power of Attorney to handle fees?
It helps to have a Power of Attorney or an authorised representative in place so a trusted family member can manage payments and paperwork. If you do not have this arranged yet, we can point you in the right direction.
Fees are personal. Let us walk you through yours.
Every family’s situation is different, and the paperwork can feel overwhelming. Call us and a real person, often a member of the family, will talk it through with you. No pressure, no rush.
Come and see for yourself.
The kettle’s on.
Choosing a home for a parent is a big, often sudden decision. Leave your details and we will be in touch to arrange a visit, walk you through the government fees so they are easy to understand, and answer every question – no pressure, no rush.
Someone from our family will call you to arrange a time to visit. The kettle’s on.