Aged Care Financial Information

Looking for Residential Aged Care can be a stressful time, especially when you are seeking accommodation under time sensitive circumstances. It is important to understand the aged care financial information, so that you can make the best choice for yourself or your loved one.

We provide you and your loved ones with a comprehensive summary below of the types of fees and costs you are likely to encounter in Residential Aged Care, so that you are informed at every step of your journey.

The aged care fees are comprised of the below two parts:

1. Daily Fees – which cover the cost of aged care services, paid on a day to day basis and  this amount is set by the government; and
2. Accommodation Payments – which is the payment for the room type of your choice at the selected residence. 

Our team members are happy to assist with discussing the best options that will suit your financial situation.

Daily Fees

Daily Fees

The ‘Daily fees’ in Residential Aged Care are paid on a day by day basis and are broken down into three categories:

1. Basic Daily FeesEvery person in residential aged care is required to pay a basic daily fee, which covers all levels of care and assistance. This fee is set by the government and is based on approximately 85% of the single Australian aged pension; 

2. Means tested Fees – The means tested care fee amount is based on an assessment of the prospective resident’s income and assets. All new residents will need to complete and lodge an ‘Income and Assets Assessment Form‘ with the Department of Human Services. The Department of Human Services will determine if a prospective resident is required to pay a means tested care fee in addition to the basic daily fees; and

3. Extra Service Fees A number of our aged care residences offer extra services and provide enhanced daily living and social experiences such as a variety of meal choices and superior lifestyle option which are additional charges.

Accomodation Payments

Accomodation Payments

The ‘Accommodation Payments’ are paid as part of the entry into residential aged care. The total accommodation payment amount will vary depending on the chosen accommodation by the resident.

You can select one of the below payment methods when it comes to accomodation payments:

1. Refundable Accomodation Payment (RAD)A Refundable Accommodation Deposit is a one-off lump sum payment made to the Aged Care Provider. The RAD payment is fully refundable on departure and replaces the old ‘bond’ style of payment;

2. Daily Accomodation Payment (DAP)A Daily Accommodation Payment is a rental-type payment. In this payment method,  an on-going daily payment can be selected and paid. The DAP amount is calculated from the RAD amount at the government set interest rate. Similar to rental payments, there are no funds that are returned when the resident leaves the Arcare community; or

3. A Combination PaymentA Combination payment method is a hybrid of the RAD and DAP method. Residents can opt to pay part of the accommodation payments as a lump sum RAD, and then the remaining balance can be paid through the DAP payment method until the outstanding balance has been paid. DAP payments will be calculated based on the outstanding RAD amount.

How do I know how much RAD to pay?

The details of the full RAD amount for each room type are published on the My Aged Care website at

The government can offer fully or partially supported accommodation which provides a subsidy on your RAD amount.

To check for eligibility for fully or partially supported accommodation, download an Assets and Income Assessment Form at, fill it in and then submit to the government.

For assistance please call Centrelink on 1800 227 475 or the Department of Veteran Affairs on 133 254.

Does the RAD need to be paid upon entry to an Arcare residence?

The government allows you and or your loved one a duration of six months from the date of entry to pay the full RAD balance. There is also added interest that is paid at the current legislated rate from the date of entry until the full RAD amount is paid.

If the RAD is paid within 7 days of entry no interest will be charged.

Is the RAD safe and what happens if a resident leaves or passes away?

The government guarantees all Refundable Accommodation Deposits (RADs) that are paid to Arcare.

In the case that the resident leaves Arcare Aged Care, the RAD is fully refunded to the resident or their estate (less any outstanding fees, charges or interest). If the resident decides to return home, the RAD is refunded within 14 days from discharge.

If the resident passes away, the RAD will be refunded to their estate within 14 days of receipt of a certified copy of Grant of Probate.

What type of accommodation options are available?

There are four types of accommodation types available within Arcare’s aged care residences:

1 Fully Government supported accommodation

We offer fully supported suites where no accommodation payment is required.To check for eligibility for fully supported accommodation, download an Assets and Income Assessment from The Department of Human Services.

2. Partially Government supported accommodation

We also offer partially supported suites where only a very small accommodation payment is required from the in coming resident. To check for eligibility for partially supported accommodation, download an Assets and Income Assessment from The Department of Human Services.

3. Standard accommodation

These are the majority of aged care suites that are available at our aged care residences and are subject to an accommodation payment payable by the resident.

Each suite has a set price that is primarily determined by the features and location of the suite, the location of the residence and housing prices in the vicinity. The accommodation payment can take three forms – RAD, DAP or a combination of these.

4. Extra Service Accommodation

Some residences provide extra service suites and superior lifestyle options that require an additional fee to be paid on top of the standard accommodation payment.

This is a daily charge and depending on the residence covers additional services such as FOXTEL, choice of meals, alcohol with dinner, WIFI and daily newspapers.

Does the family home need to be sold before I enter into Aged Care?

It depends on a case by case basis. It is not necessary to sell the family home to enter into aged care. An individual’s financial situation will determine if the family home needs to be sold to enter care.

We suggest seeking out financial advice to determine the best financial outcome.

Be aware that an individual’s financial structure may impact on their pension and means tested care fee.

Are there any additional aged care costs?

Yes. Residents are responsible for all medication costs, which will be direct billed by the pharmacy. We will advise if allied health costs (e.g. podiatry and physiotherapy) will be an additional cost or if they will be paid for by the government. In general, those with low care needs will be required to pay these costs, whilst those at the higher level required care will have the costs paid for by Arcare.

Other additional costs may depend on the additional luxuries that your loved one would like to enjoy at their Arcare residence. The telephone, hairdresser, beautician, purchases from the café and gift shop, wireless internet and Foxtel do incur additional charges (unless covered under the extra services fee).

How do I lodge an Income and Assets form?

The Income and Asset Assessment Forms can be downloaded from the Department of Human Services or you can order the form by calling 1800 227 475.

All new residents will need to complete and lodge an ‘Income and Assets Assessment Form‘ with the Department of Human Services.

The Department of Human Services will determine if a prospective resident is required to pay a means tested care fee in addition to the basic daily fees.

What if my aged care financial question is not on here?

If you have any additional questions please call 1300 297 189 and we will be happy to help answer them for you.

Our dedicated Client Service Managers can provide you with brochures from a number of financial advisors who specialise in aged care.

Arcare Financial Information

Entry into an Arcare residence PDF

Entry into an Arcare residence PDF

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Request an assessment

To find out your more about your Aged Care needs and eligibility for you or your loved one, please get in touch with one of our team members.