What are the changes to fees and charges for residential care under the new Act? 

After 1 November 2025 the following fees and charges apply when accessing residential aged care. The amount you pay will depend on your level of government support, as well as your income and assets. 

Levels of government support

The three levels of support are: 1. Fully supported (by the government). 2. Partially supported (by the government) and 3. Non-supported (self-funded).  For more information on the current thresholds that determine your level of support visit our Fees and Charges page. 

Accommodation Payments 

This payment covers the cost of your room and living spaces. There are three ways accommodation payments can be paid; either as a lump sum, daily payment or a combination of the two.  

• Lump sum payments are called a Refundable Accommodation Deposit (RAD) if you’re non-supported by the government, and a Refundable Accommodation Contribution (RAC) if you are partially supported by the government. You will get the majority of this amount refunded to you when you leave. From 1 November 2025, the Residential Care provider will retain 2% of the RAD or RAC each year, limited to 5 years. 
• Daily payments are called a Daily Accommodation Payment (DAP) if you are non-supported by the government, and a Daily Accommodation Contribution (DAC) if you are partially supported. The DAP is indexed twice a year and is not refundable. The DAC is not indexed and not refundable.

To learn more about how the DAP and DAC is calculated visit the government website here.

Basic Daily Fee 

This is a fee that all residents in residential aged care pay. It covers essential services like meals, cleaning, laundry and utilities. The amount is currently set at 85% of the single basic age pension.

Means Tested Fees  

These are fees that apply to residents who can contribute to the cost of their care. The fees are calculated by Services Australia, depending on your income and assets.

• Hotelling Contribution (HC): This fee is means-tested and supports the costs associated with care, such as catering, cleaning, maintenance, heating, cooling, and laundry.
• Non-Clinical Care Contribution (NCCC): You only pay the NCCC if you’re paying the full hotelling contribution. This fee covers personal care services like bathing, mobility assistance, and lifestyle activities. There is a daily and lifetime cap that apply to this fee.

Higher Everyday Living Fee (HELF) 

This is an optional fee and replaces ‘additional services’ and ‘extra services’. Some homes offer services that are at a premium level to the standard services, for example offering wine with dinner. These premium services fall under HELF and the prices are set by the provider.  Anglicare is currently finalising its higher everyday living goods and services, and its pricing, with a plan to launch in early 2026. To learn more about HELF download the government fact sheet here. 

Interim Means Tested Fee  

While waiting for a resident’s means assessment, residential aged care providers can choose to charge an interim means tested fee. Once the means assessment has been received if you have been overcharged you will receive a refund for the difference or if you were undercharged you will be required to pay the difference.

Bed reservation fee 

Anglicare will charge this fee for each day you are absent from the residential aged care home on extended hospital leave (continuous period of 30 days or more) or on social leave more than the 52 days in a financial year. The fee is the sum of what you would have paid for that day and the amount the government would have paid to the provider for your care.

To learn more about fees and charges click here.