How much does residential aged care cost in Australia in 2025-26?

All residential aged care residents pay a basic daily fee of $61.96/day ($22,615/year), which is 85% of the single Age Pension. On top of this, you may pay a means-tested care fee (based on your income and assets, capped at $33,309.20/year and $79,942.08 lifetime) and an accommodation cost (either a refundable lump sum RAD or a daily DAP). Optional extra services fees may also apply.

What is the difference between RAD and DAP?

The RAD (Refundable Accommodation Deposit) is a lump sum payment that is fully refundable when you leave care. The DAP (Daily Accommodation Payment) is a daily fee calculated as RAD multiplied by the MPIR (Maximum Permissible Interest Rate, currently 8.36%) divided by 365. You can pay any combination of RAD and DAP. You have 28 days after entering care to decide.

How is the means-tested care fee calculated?

The means-tested care fee is based on the higher of an income test or an assets test result. For income, you pay 50% of income above $33,021.60/year. For assets, the threshold is $197,735.20 for homeowners or $457,111.20 for non-homeowners. The fee is capped at $33,309.20 per year and $79,942.08 over your lifetime.

How much does a Home Care Package cost?

Home Care Package recipients pay a basic daily fee of $12.54/day ($4,577/year) plus an income-tested care fee if income exceeds $33,021.60/year. The government funds the rest of the package, which ranges from ~$10,526/year (Level 1) to ~$60,961/year (Level 4) depending on your assessed care needs.

Is my home included in the aged care assets test?

Your principal home is generally excluded from the assets test for aged care fees, but whether you are a homeowner affects which asset threshold applies. Homeowners have a lower threshold ($197,735.20) than non-homeowners ($457,111.20). If your home is occupied by a protected person (spouse, dependent child, or close relative), it remains exempt. If no protected person lives there, a capped value may be counted after 2 years.

What is the MPIR and how does it affect my DAP?

The MPIR (Maximum Permissible Interest Rate) is set by the Department of Health and Aged Care and is used to calculate the DAP from the RAD amount. As of January 2026, the MPIR is 8.36%. For example, a $380,000 RAD converts to a DAP of approximately $87.07/day ($31,781/year). The MPIR is reviewed quarterly.

Aged Care Fees Calculator

Estimate the cost of residential aged care or a Home Care Package in Australia. Calculate your basic daily fee, means-tested care fee, accommodation costs (RAD vs DAP), and see how annual and lifetime caps apply to your situation.

Last verified: 20 March 2026

Type of care

Residential aged care

Nursing home / residential facility

Home Care Package

Government-subsidised care at home

Annual income (before tax)*

Include Age Pension, superannuation income streams, employment income, investment income, and any other assessable income.

Total assessable assets*

Include investments, super (if pension age), bank accounts, and other assets. Your home is excluded from the assets test but affects which threshold applies.

I own my home (or paying it off)

Homeowners have a lower asset threshold for the means-tested fee. Your home value is excluded from the assets test.

Room price (RAD)*

The Refundable Accommodation Deposit set by the facility. Typically $200,000 to $550,000. This is the advertised room price.

How do you want to pay accommodation?

RAD (lump sum)

Pay the full amount upfront. Fully refundable when you leave.

DAP (daily payment)

Pay a daily fee instead. Calculated using the MPIR (currently 8.36%).

Combination (part RAD + part DAP)

Pay some as a lump sum and the rest as a daily fee.

You have 28 days after entering care to decide. You can change your mind later.

Extra services fee (per day)

Optional higher standard of accommodation, food, or services. Typically $10-$120/day. Enter $0 if not applicable.

General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.

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