Age Care•
Aged Care Fees: Understanding the Costs in 2026
Breaking down the Basic Daily Fee, Means-Tested Care Fee, and RAD/DAP costs for residential care.
Demystifying Aged Care Costs
The Australian aged care system can be financially complex. Here's a breakdown of the three main fees you might encounter.
1. Basic Daily Fee
Paid by everyone in aged care. It covers living costs like meals, cleaning, and laundry.
2. Means-Tested Care Fee
An additional contribution toward the cost of your care, based on your income and assets.
3. Refundable Accommodation Deposit (RAD)
A lump sum payment for your room, which is fully refundable when you leave the facility.
Seeking financial advice from a specialist aged care advocate is highly recommended before making any commitments.