How much does an aged care home cost in Australia in 2026?
Residential aged care in Australia is funded by a mix of the Australian Government and the resident. Most residents pay between three and four separate fees. In 2026, the fees remain indexed twice a year, and the new Aged Care Act (effective 2025–2026) is introducing more transparency around quoted costs. This guide explains the four main fees, the caps, and the real weekly budget you should plan for.
Basic Daily Fee
Everyone pays this. It is set at 85% of the single basic Age Pension and is reviewed in March and September each year. As of early 2026 it is around $63 per day, or roughly $441 per week. This covers meals, laundry, cleaning, and basic care.
Means-tested Care Fee
Calculated by Services Australia from the resident's income and assets. It is the government's contribution to personal and clinical care, but means-tested residents pay a portion. There is an annual cap (around $33,000 in 2026) and a lifetime cap (around $80,000). Once the lifetime cap is reached, the resident pays no further means-tested care fee.
Accommodation Payment (RAD or DAP)
A Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination. RAD is a lump-sum bond, refundable when the resident leaves minus any agreed deductions. DAP is a daily interest-only charge on the unpaid RAD balance. Maximum RAD is currently around $750,000 without ministerial approval — anything higher requires approval.
Calculating DAP from RAD
DAP equals the RAD multiplied by the Maximum Permissible Interest Rate (MPIR), divided by 365. In 2026 the MPIR is roughly 8–9% per annum. For a $550,000 RAD, the DAP is roughly $550,000 × 0.085 ÷ 365 = $128 per day. Many residents pay a part RAD and a reduced DAP on the balance.
Extra (or Additional) Service Fee
Optional. Covers premium meals, wine, private rooms, Foxtel, daily newspaper, hairdressing, or excursions. Disclosed up front in the resident agreement and can range from $10 to $100+ per day. Only pay for extras you will actually use.
What about a low-means resident?
If assessed as low-means, the Australian Government covers most of the accommodation cost. You'll pay only the Basic Daily Fee and a small accommodation contribution, if any. This is a common scenario for residents who do not own a home or have modest assets.
Realistic weekly budget in 2026
A typical self-funded resident with a part RAD and modest extras might budget $500–$900 per week out of pocket after the government subsidy. A low-means resident may pay only $450–$550 per week. Costs vary widely by room type and location.
Frequently asked questions
Authoritative sources
The figures and rules in this guide are drawn from the following official and independent sources. Open any link to verify the latest published numbers.
- Residential aged care fees and charges
Department of Health, Disability and Ageing
- Income and assets assessment (SA457 / SA485)
Services Australia
- Aged care fees and costs
My Aged Care
- Aged Care Pricing Authority — accommodation prices
Independent Health and Aged Care Pricing Authority
About this guide
Written and reviewed by the Nursing Home Match editorial team. We update guides at least annually and verify every figure against the official sources listed above. This guide is general information, not personal, medical, financial or legal advice. Always confirm details on Medicare.gov Care Compare (United States) or My Aged Care (Australia), or speak to a qualified adviser before making decisions.