Understanding fees, charges and financial decisions

We understand that moving into aged care is a significant financial investment. We cannot provide financial advice and advise you seek assistance from an independent financial advisor if needed. You can also visit My Aged Care, established by the Australian Government to provide information on aged care.

There are two different fee types – Care Fees and Accommodation Payments.

Care Fees

There are two types of care fees – the Basic Daily Fee and the Means-Tested Daily Care Fee.  The Australian Government subsidises and regulates the maximum costs you will be required to pay, depending on your financial situation.

The Basic Daily Fee helps to cover the costs of day-to-day living, including meals, cleaning, laundry, heating and cooling.

The Australian Government sets the Basic Daily  Fee,  currently 85% of the basic single aged pension. Services Australia will mail you a letter confirming your Basic Daily Fee.

The Means-Tested Care Fee is an additional contribution towards the cost of aged care. Services Australia  will conduct an assessment of your income and assets and advise if, and how much, you pay.

Caps apply to a Means-Tested Care Fee – both yearly and lifetime. Once these caps are reached, the Means-Tested Care Fees cease to apply. If you have been receiving home care services and paying means tested care fees before moving into residential aged care, this will also contribute to your yearly and lifetime caps.

Accommodation Payments

The Accommodation Payment covers your accommodation costs. In some cases, the Australian Government will cover all or part of the accommodation costs. If you do not qualify for any Australian Government subsidy you will be required to pay the full accommodation price agreed with the aged care provider.

The cost of accommodation varies both between and sometimes within aged care homes. This variation depends on the room standard and is not an indication of the standard of care.

You have a choice of four options to pay the Accommodation Payment:

A one-off lump sum accommodation payment. This is fully refundable at the end of your stay, less any deducted amounts you have may have agreed to.

The Australian Government guarantees the refund.

The accommodation cost converted into a daily payment. Charged monthly, this fee is calculated at the maximum periodic interest rate (MPIR) set by the Australian Government.

There is no refund at the end of your stay.

A combination of Refundable Accommodation Deposit (RAD) and Daily Accommodation Payment (DAP). You choose the RAD amount, and we will calculate the DAP for you.

You can make RAD payments at any time, which will reduce the DAP payments.

A combination payment where the Daily Accommodation Payment (DAP) is deducted from your Refundable Accommodation Deposit (RAD) as a drawdown.

When you leave the remaining RAD balance is refunded.

You have 28 days (from the time you enter aged care) to decide your payment method. You are required to pay a Daily Accommodation Payment (DAP) until the Refundable Accommodation Deposit (RAD) is fully paid.

We list the room prices of our houses in the locations section of our website or click for Nazareth Care Room Pricing and Fee Schedule all locations.

To find out how we can support you or to arrange a personal tour, contact the Nazareth Care team today on 1800 749 123.
“We did have many incidents where we walked in unannounced and came up behind staff attending to our father in a loving, caring and respectful manner. Always treated with patience and kindness.”
- daughter of Wynnum resident