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Aged Care Costs & Nursing Home Fees

Aged Care Costs & Nursing Home Fees

The cost of aged care in Australia ranges between $100,000 to $400,000 per year depending on your circumstances and the available government subsidy.

Nursing home fees are a significant expense that can put serious pressure on families.

It’s really important you understand costs, and that you have a plan thousands of dollars.

What fees should I pay for aged care?

There are four types of fees that you may need to pay for aged care:

  • Accommodation fee - paid for the right to live in a residential service .
  • Basic daily care fee - paid for the cost of aged care.
  • Means-tested fee - you may need to pay certain fees depending on your income and assets.
  • Additional services fee - only payable if you select additional services such as daily newspaper, recreational activities, etc.

The specific types of fees you have to pay as well as the amount largely depend on the aged care facility you want to move into, how much income you have, as well as the value of your assets.

The Australian government sets the rules for calculating the fees. Be sure to check with your resident agreement so you really understand what you are paying for and if you have the option to stop paying.

It is better to work with an aged care specialist from ACFP so you can look at the rates you need to pay and any special rules that can help you minimise the cost.

How much is the aged care accommodation fee?

There’s no fixed cost for aged care accommodation in Australia as each nursing home sets the cost based on different factors such as market demand, type of room, and local property prices.

Our aged care financial advisers can help you determine the cost of accommodation fee depending on your location.

Aside from helping you figure out the cost for aged care accommodation, our advisors can also help you negotiate a lower rate, structure or if you are eligible for government concessions to lower the amount you have to pay.

For more information on aged care costs, you may call ACFP on 1300 000 243