Residential Aged Care Costs Example Ascott Gardens, Orange NSW

01 | Basic Daily Fee             

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

02 | Means-tested Fee         

These fees apply to residents who are able to contribute to the cost of their care. The fees are calculated by Services Australia, based on your income and assets. Residents who do not provide these details will be required to pay maximum fees for aged care services.

Hotelling Contribution: This fee is means-tested and supports the costs associated with care, such as meals, cleaning,  and laundry.

Non-Clinical Care Contribution: You only pay this fee if you’re paying the full hotelling contribution. This fee covers personal care services like bathing and mobility assistance. It currently has a daily cap of $105.30 and a lifetime cap of $135,318.69 or four years, whichever comes first.  The maximum amount changes with indexation in March and September.

03 | Accommodation Cost

This payment covers the cost of your room and living spaces.

  • If you are fully supported by the government, you don’t need to pay this.
  • If you are partially supported, you’ll need to pay a contribution and
  • if you’re non-supported you will need to pay the full amount.

There are three ways accommodation payments can be paid; either as a lump sum, daily payment or a combination of both.

  • Lump sum payments:
  • For non-supported residents, this payment is known as a Refundable Accommodation Deposit (RAD).
  • For partially supported residents, this payment is known as a Refundable Accommodation Contribution (RAC).

The remaining RAD is refunded to you when you leave. The residential care provider retains 2% of your RAD or RAC each year, limited to five years. This amount is not refundable, and no further retention is deducted after 5 years. Please refer to Refundable accommodation deposit and contribution (RAD and RAC) retention | Australian Government Department of Health, Disability and Ageing for Retention Calculation.

  • Daily payments:
  • For non-supported residents, the daily payments are known as Daily Accommodation Payments (DAP).
  • For partially supported residents, they are known as a Daily Accommodation Contribution (DAC).

The DAP is indexed twice a year, in March and September. The DAC is not indexed. The DAP and DAC are not refundable.

Combination of both: You can also choose to pay your accommodation as a combination of both RAD and DAP or both RAC and DAC to best suit your financial situation.

FEE TYPE DESCRIPTION / ROOM TYPE RAD / FIXED AMOUNT DAP / DAILY AMOUNT
Basic Daily Fee Standard daily charge $65.55/Day $917.70/Fortnight
Means-tested Fee Hotelling Contribution Services Australia will advise the fee you may need to pay Services Australia will advise the fee you may need to pay
Means-tested Fee Non-Clinical Care Contribution Services Australia will advise the fee you may need to pay Services Australia will advise the fee you may need to pay
Accommodation Cost Poppy Dementia Single Room – No Ensuite (10m²) $750,000 $157.19
Accommodation Cost Single Room + Ensuite (21m² to 23m²) $750,000 $157.19
Combination Option 50% RAD + 50% DAP $375,000 + $78.60 daily Available for both room types

The table above is an example of potential costs based on the current fees and interest rates as of 01 November 2025. UPA processes billing on a fortnightly basis, aligned with the pension payment cycle.