The Average Cost of a Care Home in Australia: Take a Look
Finding the right care home in Australia involves understanding the range of services offered and the factors that influence overall expenses. Costs can vary depending on the level of support required, the location of the facility, available amenities, and the type of accommodation chosen. Many care homes provide personalised care plans, medical supervision, and daily assistance, helping residents maintain comfort and quality of life. Taking time to compare different options and assess individual needs can make the decision process smoother and more informed.
Working out the average cost of entering a care home in Australia means understanding several fee types that interact: a basic daily fee for living costs, a means-tested care fee based on your financial situation, and an accommodation payment you choose to pay as a lump sum, a daily amount, or a mix of both. Because these elements are regulated and reviewed, careful reading of current policy and provider quotes is essential.
This article is for informational purposes only and should not be considered medical advice. Please consult a qualified healthcare professional for personalized guidance and treatment.
What is residential aged care?
Residential aged care provides full-time accommodation with daily living support, clinical care, meals, and social programs. You apply through the government’s assessment pathway and then select a provider. Costs vary because some residents qualify for government assistance, while others contribute more toward their care, depending on income and assets. Facilities range from standard shared rooms to private suites with additional amenities.
Which aged care services are included?
Core aged care services typically include nursing, personal care, meals, laundry, cleaning, and activities. Many homes also offer allied health, dementia support, or palliative care, sometimes included and sometimes billed as additional or extra services. Optional extras, such as premium dining or entertainment bundles, may attract separate fees. When comparing local services in your area, check what is included in the base price versus what is added as an extra, as this can meaningfully change the total you pay.
How aged care accommodation payments work
Aged care accommodation is funded through one of three choices: a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination. The RAD is a lump sum that is government-guaranteed and refundable when you leave, less any agreed deductions. The DAP is an interest-style charge calculated from a government-set rate, applied to the RAD amount you do not pay as a lump sum. People with lower means may receive an accommodation supplement paid to the provider by the government.
What influences what you pay
Several factors shape your out-of-pocket costs: your means assessment (income and assets), the room price set by the provider, room type and size, location (regional versus metro), and any optional extras you choose. The basic daily fee is capped at up to 85 percent of the single basic Age Pension, indexed, while the means-tested care fee is subject to annual and lifetime caps that are updated over time. The accommodation amount varies by facility and is commonly presented as a RAD. If you choose to pay all or part as a DAP, the payable daily amount is calculated from the government’s interest rate at the time of entry and will change if that rate changes in future.
Pricing and provider examples
Below are indicative ranges to help contextualise typical market figures for residential aged care accommodation. These are not quotes and will vary by facility, city or suburb, room features, and your personal assessment. Prices are estimates and can change; always confirm directly with providers.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Residential aged care place (single room) | Bupa Aged Care Australia | Advertised RADs commonly fall around AUD 350,000–700,000 depending on location; DAP derived from the government-set rate; basic daily fee and any means-tested care fees apply. |
| Residential aged care place (single room) | Regis Aged Care | Typical RAD range around AUD 350,000–700,000 across portfolio; DAP calculated on unpaid RAD; other regulated fees apply. |
| Residential aged care place (single room) | Estia Health | Typical RAD range often seen around AUD 400,000–750,000, varying by facility and room type; DAP available; regulated daily and care fees apply. |
| Residential aged care place (single room) | Bolton Clarke | Indicative RAD range around AUD 300,000–650,000 depending on region and amenities; DAP option; regulated fees apply. |
| Residential aged care place (single room) | Southern Cross Care | Indicative RAD range around AUD 300,000–650,000; DAP option; basic daily fee and any means-tested care fees apply. |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
To illustrate how the daily accommodation payment can look, if a RAD of AUD 550,000 is advertised and you choose not to pay a lump sum, the DAP is calculated using the current government-set interest rate at entry. As a rough example only, at an 8 percent rate, the DAP is about 120 per day. Actual figures depend on the rate in effect at your time of entry and any partial RAD you choose to pay.
Estimating costs in your area
To estimate your own outlay, start with the government assessment to establish eligibility and whether any supplements apply. Gather quotes from at least three providers offering residential aged care accommodation in your preferred locations. Request a breakdown that separates the basic daily fee, any means-tested care fee, the advertised RAD, the equivalent DAP at the current rate, and any optional extras. Ask for written confirmation of inclusions and exclusions, and check how fees may change over time. If needed, seek independent financial advice to understand asset implications and payment mix.
Practical tips for comparing options
- Match care needs to services. Ensure the home can deliver the level of aged care services you require, including clinical care or dementia support if relevant.
- Compare like-for-like rooms. A private ensuite in an inner-city facility will usually price differently from a shared room in a regional area.
- Model different payment mixes. Consider part RAD and part DAP to balance cash flow with long-term affordability.
- Clarify extras. Ask for a list of extra services and their monthly cost so you can compare total costs fairly across local services.
In summary, the average cost of a care home place in Australia depends on regulated daily and care fees, your means assessment, and the accommodation amount a provider charges for a given room. With a clear view of each fee type, transparent provider quotes, and awareness that rates and caps are updated over time, you can build a workable budget and identify a setting that fits both care needs and financial goals.
