Published: 16 October 2025
Your residential care provider may calculate and deduct retention amounts. These deductions will help aged care homes maintain and improve their facilities.
Your provider may deduct these retention amounts from your lump sum accommodation payments.
This will apply to most people entering permanent residential care for the first time from 1 November 2025.
If this change applies to you, your provider will keep 2% per year, calculated on the daily balance. This will be deducted at least once every three months, but deductions are limited to 5 years.
To find out if this applies to you, visit the Department of Health, Disability and Ageing website.
This information was printed 11 November 2025 from https://www.servicesaustralia.gov.au/changes-to-residential-care-lump-sum-accommodation-payments-are-coming. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/site-notices when using this material.