Understanding fees

Understanding your care costs at Boandik

Moving into Residential care is a major life event, and we know that navigating the financial side can feel overwhelming.

Our friendly team is here to walk you through the process and help you understand every fee, ensuring your transition is as smooth as possible. 

While the Australian Government subsidises Residential Aged Care, all aged care residents pay a minimum charge called the Basic Care Fee. You may be asked to contribute to your accommodation and care costs based on your financial means. To determine your specific contribution and any available Government assistance, an income and asset assessment will be conducted by Services Australia or the Department of Veterans’ Affairs.

Types of aged care fees

Accommodation Costs 

The outcome of your government means assessment will determine how much, if any,  you will contribute towards your accommodation. 

If you’re assessed as needing to pay for the value of your room, this is the agreed price you will pay for your room in an aged care home.

You can find our room values for each location here:

For people who are not eligible for full or partial government assistance for accommodation costs you have three options in how you make this payment:

• 1. Lump Sum Payment

  • Refundable Accommodation Deposit (RAD): A refundable lump sum you pay yourself at the time of entry.
  • Refundable Accommodation Contribution (RAC): This is when the government helps with the costs. It is based on the Daily Accommodation Contribution (DAC) determined by Services Australia.

  If you choose to make a lump sum payment under the new Aged Care Act, providers will retain up to 2% per year for up to 5 years. These deducted amounts do not need to be refunded on exit.

  It is recommended that you seek independent financial advice to decide which payment option works best for you.

• 2. Daily Payment

  • Daily Accommodation Payment (DAP – room rental): A daily payment you choose to pay yourself that accrues daily and is charged fortnightly. The DAP will be indexed biannually in March and September each year.
  • Daily Accommodation Contribution (DAC): This is when the government helps with the costs. The amount is determined by Services Australia based on your means assessment.

  Daily payments are not refunded when you leave care.

• 3. Combination of a Lump Sum Payment and Daily payment

  A combination payment that includes both a refundable partial lump sum and non-refundable daily payments.

Everyday Living Costs

• Basic Daily Fee

  Every person who enters permanent care pays a Basic Daily Fee. This is set at 85% of the basic single aged pension. The fee covers daily running costs such as laundry and cleaning. 

  The Basic Daily Care Fee is adjusted by the Federal Government each March and September in line with Age Pension increases. All aged care residents pay the Daily Care Fee regardless of their financial circumstances.

• Hotelling Supplement

  This includes things such as catering, cleaning, and gardening. Your government means assessment will let you know if you can afford to contribute more towards everyday living costs.

Non-Clinical Care Contribution

This includes bathing, mobility assistance and lifestyle activities. Your government means assessment will let you know if you can afford to contribute towards non-clinical care.

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Residential Age Care Costs if you entered care between 2014 and 2025 

If you were already in permanent residential aged care before the 1 November 2025, or if you were receiving a Home Care Package as of 12 September 2024, or if you were approved for a Home Care Package as of 12 September 2024 your fees would sit under the previous 1 July 2014 fee arrangements. 

My Aged Care has information on this: 

Receiving care already? Aged care home costs and fees