Planning for senior care can be stressful, especially when it comes to determining the costs. With so many alternatives, from home care packages to residential aged care and short-term help, knowing what you’ll spend and what the government will cover is critical. Whether you’re assisting a loved one to stay safely at home or planning a move into residential care, this guide will break down the expenses of aged care support in Australia, allowing you to make confident, informed decisions for the future.
Understanding the financial side of aged care means you can protect your loved one’s wellbeing without unnecessary worry or surprises. From daily fees to subsidies and hardship assistance, we’ll explain the key factors you need to consider so you can choose in-home aged care and other care options that match your needs, budget, and peace of mind.
Understanding the cost of Aged care support centers in Australia
How much you should pay depends on the type of support and service, the service provider you choose, and your financial situation. You are expected to make a contribution to the accumulated cost after figuring out the care type you have been assessed for.
The Home Care Package (HCP)
If you are eligible for the home care package (HCP), you may have to pay;
- a basic daily fee or
- an income-tested care fee or a basic daily fee
Being capable of the home care package means the government shall provide subsidies on a certain portion of the cost of care. The total cost of the home care package is made up of; the contribution made by the Australian Government and the contribution fee which you must pay.
How much do the Australian Government contribute to the Home Care Package (HCP)?
The Government pays different subsidy amounts for each care level in the Home Care Package (HCP). The government subsidy for the package is listed below;
Level 1 – $10,931.75 (approx.)
Level 2 – $19,224.55 (approx.)
Level 3 – $41,847.25 (approx.)
Level 4 – $63,440.65 (approx.)
(Note: The government contribution increases every year)
The contribution made by the government is directly paid to the home care provider you choose. These funds won’t affect your pension as these are not income.
How much fee should you pay for the Home Care Package (HCP)?
The contribution made by you is the summation of the basic daily fee, income-tested care fee and additional fee.
The basic daily fee is a standard amount that some Home Care Package providers may ask you to pay. This fee helps cover everyday living costs like meals and cleaning.
From 1 July 2025, the daily fees for each package level are roughly:
Level 1: $11.77 per day
Level 2: $12.45 per day
Level 3: $12.80 per day
Level 4: $13.14 per day
Not all providers charge this fee, so you should check with your provider. If your provider charges the fee, it adds to the money available for your care. If they don’t charge it, your care budget will be smaller.
Income-Tested Care Fee
On top of the daily fee, some people may also need to pay an income-tested care fee. This depends on your income and assets.
If your income is below certain amounts (around $34,000 a year for singles), you usually don’t pay this fee.
If you earn more, you might pay extra—anywhere from about $19 up to $38 per day, depending on your income.
Plan for Affordable Care: Understanding Aged Care Costs in Australia
Gain a clear understanding of aged care costs in Australia and start planning for affordable care options that provide the necessary support and assistance for older individuals.
The Commonwealth Home Support Programme (CHSP)
For eligibility for the CHSP service, you need to pay for the service you receive at a subsidized rate. No financial assessment is needed, as the fees shall be levied on per service basis with no exit cost. The service providers are deemed to charge a different amount for the services.
The Australian Government subsides the fee for reasonability and affordability. You don’t need to cover the full cost. A regular payment is done for the taken service. In case you are not satisfied with the service cost, you can discuss it with the service provider. Even after discussion, if the cost doesn’t suit you, then the providers have policies that protect the least able to contribute.
The contribution does not make any impact on the pension amount, as the amount shall be directly disbursed to the service providers.
Aged Care Homes
Once you become eligible for the aged care homes, you need to bear the following expenses;
- a basic daily fee or
- accommodation fee or a basic daily fee or
- a means-tested care fee or accommodation costs and a basic daily fee.
Aged care homes are available in all sizes, shapes, and prices. The only challenge you have is to find the right one suitable for your preference, needs and budget. Several costs are associated with aged care homes. The basic layout of the possible costs, such as basic daily fees, means-tested carefree, accommodation, extra service fees, and additional service fees.
If you can’t afford the service cost despite getting a subsidy, you can consider the financial hardship.
Short-term care
For short-term care, you must pay a daily fee. The costs depend on the type of short-term service care you receive. These types of care are generally for a set period. There are different types of short-term care depending on your needs, but they assist you in the day-to-day task. Basically, there are three kinds of short-term care;
- Short-term restorative care: This type of care is availed by those who are looking for daily task help instead of long-term support services.
- Transition care: These are the ones who need assistance till they recover and regain the same level of confidence after their stay in the hospital.
- Respite care: This is needed when one needs to take a short career break. It could be a few hours or a short stay at night just to provide everyday care.
The Australian Government subsidises short-term care providers to make the service more affordable. The cost of the service may vary. While the maximum amount you could be asked to pay shall be $10.54 per day (for service in your residence), and $51.21 per day (for service in a residential setting).
Financial Wellness for Aging Loved Ones: Decoding Aged Care Costs
Decode the costs of aged care and prioritize financial wellness for your aging loved ones by gaining insights into available funding options and making informed decisions for their care and support.
How to Plan for Aged Care Costs?
Get an assessment: Contact My Aged Care to start your assessment and find out what care options suit you.
Understand fees: Request detailed fee information from providers before committing.
Seek financial advice: Aged care costs can affect your assets, including your home. Financial advisors or aged care specialists can help you plan.
Consider insurance: Some private insurance policies cover aged care or related health expenses.
Budget for extras: Remember to factor in personal expenses not covered by fees, like haircuts or outings.
For Any Financial Situation
Financial support & advice
Financial planning is important to make execute the plan. If you want to manage your finances, you can straightly approach the Department of Human Services’ free Financial Information Services. This keeps you informed about the financial decisions, investments and financial issues of the present and future needs.
Financial hardship
If your aged care cost is beyond your control, then there is financial hardship assistance to get the care. Once granted, the Australian Government shall take care of the partial fees or the whole of the charges. Each case is assessed on an individual basis that may be relevant to the situation.
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