How much does aged care cost in Australia?
The honest answer is: it depends, and anyone who gives you one flat number is guessing. But the pieces are knowable. Here is what home care and residential care actually cost, how each fee works, and the caps that stop it running away.
Home care (Support at Home)
If care happens at home, the government sets a quarterly budget based on your assessed needs, across eight classification levels running from about $11,010.01 to $80,137.12 a year (as at 1 July 2026). You contribute a share of the cost of some services, and the government funds the rest. The key fairness points:
- Clinical care, such as nursing and allied health, is fully government funded. You contribute nothing toward it.
- Independence services start at a 5% contribution for full pensioners; everyday living services start at 17.5%. Your exact rate is set by Services Australia from your income and assets.
- Care management is capped at 10% of your budget.
- Your budget follows you. If a provider is not delivering, you can switch, and exit fees are banned.
Estimate your Support at Home budget and contribution.
Residential aged care
Moving into a home has three separate costs, and it helps to keep them apart in your head:
- The basic daily fee: $66.80 a day (as at 20 March 2026), set at 85% of the single Age Pension. Everyone pays this.
- A means-tested care fee: depends on your income and assets. Many people pay little or nothing; those with more means pay more, up to annual and lifetime caps.
- An accommodation payment: for your room. You can pay a refundable lump sum (a RAD), an equivalent daily payment (a DAP) calculated using the government interest rate of 8.43% (as at 1 July 2026), or a mix.
Compare paying a RAD lump sum versus a daily payment.
The protections that matter
Two things stop aged care costs spiralling. Refundable deposits are guaranteed by the Australian Government, so your lump sum is safe and refunded when you leave. And lifetime caps limit total non-clinical contributions to $137,917.01 (or $86,185.23 under grandfathered arrangements). From 1 October 2026, personal care becomes free for everyone.
Common questions
How much does a nursing home cost per week in Australia?
There is no single figure, because residential aged care has three parts: a basic daily fee ($66.80 a day as at 20 March 2026, the same for everyone), a means-tested care fee that depends on your income and assets, and an accommodation payment set by the home. Two people in the same home can pay very different amounts. Use the calculators to estimate your own figure.
Is aged care free for pensioners?
It is heavily subsidised but not entirely free. Full pensioners still pay the basic daily fee and may pay an accommodation contribution, but clinical care such as nursing is fully government funded, and lifetime caps limit what anyone pays over time. From 1 October 2026, personal care also becomes free for everyone.
What is a RAD?
A Refundable Accommodation Deposit is a lump sum you can pay for your room in residential care. It is fully refunded when you leave, and it is guaranteed by the Australian Government. Instead of the lump sum you can pay an equivalent daily amount (a DAP), or a mix of both. Our RAD and DAP calculator shows how the two compare.
Is there a limit on how much I will pay?
Yes. There are lifetime caps on non-clinical contributions: $137,917.01 under the current rules (grandfathered arrangements are capped lower, at $86,185.23). Once you reach the cap, you stop paying those contributions.
See the real options, with costs, near you
Ask June for a free shortlist and get the actual homes and home care providers for your area, with official ratings, side by side.
Figures are current government rates as at the dates shown and are indexed regularly. This is general information, not financial advice. Confirm your own situation with Services Australia and a financial adviser.