The Australian government provides funding for aged care services through various programs and subsidies. The funding for aged care typically comes from a combination of government allocations, user contributions, and other sources.
The Basic Daily Fee is a contribution towards day-to-day living costs in an aged care facility, including meals, cleaning, laundry, and utilities, such as heating and cooling. Everyone entering an aged care home is obliged to pay; this fee and it is linked to a percentage of the basic Age pension.
As at March 20, 2023, the basic daily care fee for new residents, including respite residents, is $58.98 per day ($21,527.70 per annum) – the equivalent of 85% of the maximum single person rate of the basic Age Pension.
For some people, the basic daily fee will be the only fee they will need to pay. For example, at 20th March 2023, a single person on an annual income below $30,568.20 (or $24,117 for each member of a couple) and whose assets are less than $57,000 will pay only the basic daily fee at an aged care home.
Means-tested care fee. Depending on your income and your assets, you may be asked to pay a means-tested care fee. This is an additional contribution to your cost of care and will be determined by Centrelink. This is not a fixed cost and it might adjust if your assets, income, or cost of care changes.
The maximum means-tested fee you may be asked to pay is $28,087 per year and $67,409 over a lifetime. Means-tested care fees are paid by direct debit fortnightly in advance.