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Explaining Costs & Fees in Residential Care

Moving into a residential care home is a big decision and it is important to understand the costs and fees associated with care so that you and your family can choose the home, accommodation type and payment option that best meets your needs. The fees that you pay cover the cost of the care you receive and your accommodation in an aged care home.

While aged care fees are subsidised by the Australian Government, you may be asked to contribute to the cost of your care and accommodation if you can afford to do so.

We strongly recommend that you seek independent financial advice to help you choose the right option for you.

Understanding fees and charges set by the government

Basic daily fee

This fee contributes to the costs of your day-to-day living expenses.

  • Helps to cover the costs of meals, cleaning, laundry, electricity.

  • The Basic daily fee is calculated by the Australian Government at 85% of the pension.

  • This fee increases biannually.


Means tested care fee

In addition to the resident fees and charges, the Australian Government subsidises the cost of care for individuals based on their care needs. If you have the means to support the cost of your care, you will be required to contribute.

  • May Shaw does not retain this fee – it is paid directly to the Australian Government.

  • This fee is determined by the Centrelink Income and Assets Assessment.

  • The fee cannot be higher than the resident’s cost of care.

  • The Means Tested Care Fee is assessed quarterly and can change.

  • There are annual and life-time caps associated with this fee.

Understanding Centrelink's income and assets test

The Income and Assets Assessment is a Government assessment to determine your ability to contribute to your accommodation and care costs.

  • This Assessment can be completed prior to admission – valid for 120 days.

  • The Assessment is not mandatory, however the maximum fee charges will be applicable for those who do not have a valid Assessment, or until the Assessment is completed.

  • If a resident is assessed as having the means to pay their own accommodation costs, no reassessment can be requested at a later date.

  • If a resident is assessed as Low Means, they will retain this supported status for the duration of their admission in residential aged care.

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