At Leigh Place, we understand that aged care fees and charges can be complex. While we cannot provide financial advice, we can help residents and families understand the types of fees that may apply, explain where information comes from, and guide people to trusted government resources and independent advice.
The most important message is that families do not need to navigate aged care costs alone. With clear information, early planning and the right advice, residents and families can make more confident decisions about care, accommodation and support.
The current environment
Understanding aged care fees can feel overwhelming, particularly when you are already making important decisions about care, accommodation and support. Under the aged care reforms, the focus is on making information clearer, supporting informed choice, and ensuring people understand what they may be asked to contribute towards their care.
The current aged care framework operates under the Aged Care Act 2024, supported by the Aged Care Rules 2025. Together, these set out the arrangements for funded aged care services, provider obligations, subsidies, fees, payments, contributions and financial matters.
For people entering residential aged care, fees and contributions may depend on when they enter/ed care, their personal circumstances, their income and assets, and the accommodation arrangements they agree with their provider. Most people entering permanent residential aged care on or after 1 November 2025 will fall under the 1 November 2025 fee arrangements.
At a high level, aged care home costs may include a basic daily fee, contributions based on a means assessment, accommodation costs, and optional higher everyday living services. The basic daily fee applies to all aged care home residents and contributes to daily living services such as meals, cleaning, laundry and utilities.
For people under the 1 November 2025 arrangements, some residents may also be asked to pay a hotelling contribution towards daily living services and a non-clinical care contribution. These amounts are means assessed, and Services Australia advises residents and providers of the amount payable where applicable.
Accommodation costs are considered separately. Everyone entering an aged care home needs to agree on a room price in writing with their provider before entering care. Depending on the person’s means assessment, they may pay the agreed accommodation amount themselves, receive government assistance, or pay an accommodation contribution.
Importantly, aged care fees and contributions can change over time due to changes in personal or financial circumstances, regular indexation of government-set fees, changes to optional services, and annual reviews of higher everyday living arrangements.
There are also protections in place. The Department of Health, Disability and Ageing explains that the Australian Government will continue to fund the majority of aged care and will fund all clinical care costs for participants in both residential care and Support at Home. Where contributions are required, they are based on income and assets, and financial hardship arrangements remain available.
For residents already in permanent residential aged care on or before 31 October 2025, current resident fees and accommodation costs will stay the same while they remain in care, unless they choose to opt in to the 1 November 2025 arrangements. The Department’s communications toolkit also describes the “no worse off principle” for eligible people already receiving aged care services.
Next Steps
Because every person’s circumstances are different, families should seek information early, with a helpful first step being to obtain independent financial advice. Services Australia or the Department of Veterans’ Affairs will generally complete the means assessment and issue fee advice where applicable.
Disclaimer: This information is general in nature and is not financial advice. Residents and families should seek independent financial advice about their individual circumstances.