Residential Care
Fee Categories

Residential Care Guide

Residential Care Fee Types and Categories

Australian Government Residential Care Fee Types and Categories

Navigating the landscape of residential care fees in Australia can be complex. The Australian Government offers various fee types and categories to support individuals seeking residential aged care services.

Understanding these fees is crucial for individuals and families planning for aged care placement. Here’s a comprehensive breakdown of the key fee types:

Basic Daily Care Fee (BDCF)

The Basic Daily Care Fee is a standard contribution towards the cost of day-to-day living expenses in residential aged care. The BDCF is applicable to all residents and is determined by the Australian Government.

The Basic Daily Care Fee is set at 85% of the Age Pension.

Means Tested Care Fee (MTCF)

The Means Tested Care Fee is an additional contribution towards the cost of care and is means-tested based on an individual’s income and assets assessment.

The MTCF aims to ensure that residents contribute to their care costs in accordance with their financial capacity.

The Department of Human Services or Department of Veterans’ Affairs conducts an assessment to determine the Means Tested Care Fee.

Refundable Accommodation Deposit (RAD) / Daily Accommodation Payment (DAP)

The Refundable Accommodation Deposit (RAD) is a lump sum payment made by residents as an accommodation payment. The RAD is refunded when the resident leaves the aged care facility.

Alternatively, residents can choose to pay a Daily Accommodation Payment (DAP), which is a periodic payment calculated based on the outstanding RAD amount.

Residents have the flexibility to choose either payment method based on their preferences and financial situation.

Additional Service Fees (ASF)

Additional Service Fees cover extra services or amenities provided by the aged care facility beyond the basic care needs. These services might include access to higher-standard accommodation, premium meal options, or additional leisure activities.

The costs and services covered under Additional Service Fees vary between aged care facilities, and residents can choose whether to opt in or out for these additional services.

Understanding the nuances of these fee structures empowers individuals and families to make informed decisions regarding residential aged care. It's essential to seek information and explore various options to find a suitable arrangement that meets both care needs and financial capabilities.


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