Aged Care Understanding

Understanding the Financials of Aged Care

When facing the emotional impact of placing a loved one in care it is important to understand what it financially means.

Both the Income and Assets of the future resident determine what fees will be required.


There are four different fees that can apply in permanent Aged Care:

  • Daily Care Fee:

The daily care fee is paid by all those who receive residential care. For people who have assets below the Asset Free Threshold and receive the full Age Pension this is likely to be the only fee they need to pay.

  • Entry Fee:

The entry fee is the cost of securing you room in your chosen facility.  The amount payable will be subject to your Income and Asset assessment.  There are options to pay this as a lump sum or a daily payment determined by a government set interest rate.

  • Means Tested Fee:

A means tested care fee is an extra daily contribution towards the cost of care that residents may need to pay, on top of the Daily Care Fee and Entry Fee, subject to Income and Assets.

  • Additional Services Fee:

Fees for additional services are an extra payment residents can be asked to pay if a higher standard of accommodation is chosen or additional services such as hairdressing or pay TV in rooms is elected.

These four levels of fees are determined on both the individual’s Income and Assets along with rates specific to the chosen facility.  To understand what this means for your circumstances please work through our fee estimator.

In understanding the fees that are payable it is also important you understand your options.  As Accredited Aged Care Professionals™ we can assist you in determining the best use of your assets to meet these fees. For many the urgency of care will result in fees commencing prior to the understanding of your available options. Our strategies can explain these initial costs along with options for the family home, the use of available funds, impact on cash flow and Age Pension entitlements.  It is also critical to understand the timeframe of options before funds are exhausted.

A step by step strategy paper to ensure you are achieving the best financial outcome can provide you the answers and peace of mind you are looking for.

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