Aged Care Financial Advice

An aged care package, now known as the Support at Home program, can be used to fund a wide range of services and supports that help you remain living safely and independently at home. 

The package must be used for care and services that are directly related to your assessed care needs and goals, as outlined in your care plan. The funds can be used on nursing care and personal care, shopping, home delivered meals, garden maintenance, assistive technology, home modifications, mobility aids, social support and companionship. The aged care package can be spent on any daily tasks and age care related needs, to keep the elderly person safe, socially engaged and living in their own home. 

Caring for an elderly person can be time consuming and stressful. Fortunately respite care in aged care provides a solution for this. Respite gives the carer a rest from their caring duties. Respite care means the elderly person moves into the aged care facility, they have their own room and ensuite, 24-hour care and support and will be encouraged to join in any of the activities or social events at the facility during their stay. The Government subsidises 63 days in a financial year for respite care. The respite recipient will be required to pay a Basic Daily Fee and any additional service fees offered by the individual aged care facility.  

As of March 2026, asset thresholds for aged care determine government support: assets below $64,500 mean the government pays full accommodation costs. If assets are $64,500–$214,884, you pay a partial amount, and assets above $214,884 mean you pay full costs. The family home is capped at $214,884 in the assessment. 

RAD and DAP are two ways of paying for your accommodation in residential aged care.  

A Refundable Accommodation Deposit (RAD) is a lump sum payment made to the aged care provider when you enter care.  

Post 1 November all RAD’s will have a retention rate of 2% per annum deducted on a monthly basis but only for five years from the date you first make payment.  

A Daily Accommodation Payment (DAP) is the ongoing daily fee you pay instead of a lump sum. It is calculated based on the RAD amount and an interest rate set by the government, known as the Maximum Permissible Interest Rate (MPIR). 

If you choose to pay the daily payment, the DAP payable is indexed in March and September in line with inflation.  

Essential living expenses are fees you contribute towards expenses such as meals, cleaning, laundry and electricity. They replace what you might have paid in your own home. 

The amount you might be asked to pay are split into two fees: 

• Basic daily fee – this is paid by all residents at the current rate of $66.80 per day. This equals 85% of the single basic age pension and will increase in March and September in line with age pension changes.   

• Hotelling contribution – this is an additional daily fee up to $22.15 per day $22.15 per day (indexed). It might be payable if you entered care from 1 November 2025 and are not a grandfathered home care recipient or you have opted-into the new fees. If applicable, much you pay is means-tested and is recalculated every month. 

It’s important to keep Services Australia/Centrelink/Veterans’ Affairs informed of changes to your income and assets (including protected person changes).