Before making a Residential Aged Care application

What providers need to know about residential aged care, cost of care and estimating fees before starting an application.

Residential Aged Care

Before starting an application, you need to know about the 3 assessments that affect a care recipient’s government funding for permanent residential aged care. These assessments are:

  • an aged care needs assessment to learn the person’s needs and recommend and approve suitable services
  • a residential aged care funding assessment to look at a care recipient’s functional, cognitive and physical capability and work out the right funding for their care needs
  • an aged care calculation of cost of care to work out how much they will pay towards their aged care costs.

When a care recipient starts care, you need to register the aged care entry record in the Aged Care Provider Portal (ACPP).

If a care recipient gets a means tested income support payment from Department of Veterans’ Affairs (DVA), they’ll need to call the DVA general enquires line to discuss their aged care costs.

When care recipients complete the Residential aged care calculation of your cost of care form, we use their financial details to work out how much the care recipient will pay and how much funding you will get towards their care.

Care recipients can apply online using their Centrelink online account through myGov. Find out how care recipients can apply online for an Aged Care Calculation of cost of care.

Care recipients can complete the aged care calculation of your cost of care up to 120 days before they enter into residential aged care. We’ll send your care recipient a fee notification letter if an assessment was completed.

Fees

Before starting a residential aged care application, you should understand the main fees a care recipient may be asked to pay.

Basic daily fee

The maximum basic daily fee for all aged care residents is 85% of the single basic Age Pension daily payment.

All care recipients pay this amount for living costs in residential care. This fee is paid to you, as the service provider, for costs such as meals, electricity and laundry. For some people, this is the only fee they need to pay.

Means-tested fee

We ask care recipients for details about their income and assets to work out how much they can pay for their aged care services. The amount they pay is based on their individual circumstances.

People who don’t provide income and asset details will pay the maximum fees for aged care services. There are annual and lifetime caps that affect how much the care recipient may be asked to pay.

Accommodation payment

The accommodation payment covers the care recipient’s accommodation in residential aged care. The amount they pay is based on their income and assets assessment. Some care recipients may need to pay an accommodation price, which is agreed between you and the care recipient.

Additional fees

Additional fees may apply if the care recipient chooses a higher standard of accommodation or extra services. These services and fees are arranged between you and the care recipient.

Aged care home fee estimator

The aged care home fee estimator can help care recipients estimate their residential aged care fees and charges. Use this tool when explaining likely residential aged care fees to care recipients. The Aged care home fee estimator is only a guide and isn’t a substitute for financial advice.

You can find the aged care home fee estimator on the My Aged Care website. Care recipients can also call My Aged Care on 1800 200 422 or have a free face-to-face appointment with an Aged Care Specialist Officer (ACSO) in one of our service centres or by video chat.

Page last updated: 12 August 2026.
QC 74133