There are three typical payments usually associated with moving into permanent residential aged care. These fees do not always apply to everyone, but should be viewed as the norm. Please see below a brief description of each charge.

If you have any questions about these fees, it is best to speak with a Financial Advisor who can recommend the best options for your particular circumstances.

Basic Daily Care Fee (BDCF)

The Basic Daily Care fee (BDCF) covers the basic cost of living expenses such as three meals per day, electricity, water etc. This rate is determined by the Commonwealth Government and is based on 85% of the single person rate of the basic Age Pension.

Means Tested Care Fee (MTCF)

The majority of the costs of your care are subsidised by the Commonwealth Government, however if your income and assets are assessed as being above certain limits you may be asked to contribute toward the cost of care by way of a Means Tested Care Fee (MTCF).  If a Means Tested Care Fee is assessed as being applicable, it would be subject to an annual cap and a lifetime cap.

Both of these charges are determined by the Commonwealth Government, therefore for more information in relation to these charges you should refer to

Accommodation Charge (RAD, DAP or Both)

The final cost is associated with the price of a place in a Residential Aged Care Facility.  This is the Accommodation Charge.

If your income and assets are determined to be under certain limits you may be assessed as being subject to a maximum Accommodation Contribution or not required to pay any accommodation charge (the government will pay the amount above the Accommodation Contribution on your behalf).  This assessment is completed by the Commonwealth Government and in these circumstance this will apply rather than the Accommodation Charge.

Otherwise, you will be asked to pay the Accommodation Cost applicable.  There are a number of rates for the various facilities and room configurations across the Organisation.

There are (3) three possible methods of payment of the Accommodation Cost:

Refundable Accomodation Desposit (RAD)

This amount is essentially a lump sum payment and is fully refundable to you or your estate at the time you exit the facility (unless it has been agreed for any amounts to be deducted from the refundable deposit in which case it would be the balance that would be refunded).

Daily Accommodation Payment (DAP)

This amount is like a regular rental or interest only payment if you choose not to pay as a lump sum.  It is calculated based on the Maximum Permissible Interest Rate (MPIR) as advised by the Commonwealth Government. This interest rate is fixed at your date of entry and will not change over your time at the facility. Since it is similar to a rental or interest only payment it is not refundable at the time of exit.

RAD/DAP Combination

This is essentially choosing a combination between a lump sum and a daily payment.  For example if a combination was chosen you could elect a 50% RAD (lump sum) which would be refundable at the time you exit the facility and the Daily Accommodation Payment (DAP) would be calculated on the remaining 50%. These percentages could be adjusted to suit your own needs.

Incidental Charges

Please note that from time to time other incidental charges may apply (e.g. bus fees for voluntary excursions).

For more information please visit the My Aged Care website or call the Commonwealth Department of Social Services on 1800 200 422.

See our Facility Accomodation Costs here:


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