Permanent Care Fees and Accommodation Charges
You can be asked to pay the following fees in residential care:
- A basic daily fee: This covers living costs such as meals, utilities, cleaning and laundry. For some people this is the only fee they are required to pay.
The basic daily fee is 85% of the single person rate of the basic age pension. From 20 September 2025, the single rate of the basic age pension is $1,079.70 per fortnight, making the basic daily fee (from 20 September 2025 to 19 March 2026):
- $65.55 per day; or $917.70 per fortnight.
This amount is indexed with the age pension. This applies even if you are a member of a couple.
- A means-tested care fee (MTCF): (applies to residents who entered permanent care before 1 November 20025) This is an additional contribution towards the cost of care that some people may be required to pay. The Department of Human Services (Centrelink) will work out if you are required to pay this fee based on an assessment of your income and assets and will advise you of the amount.
- A Non-clinical care contribution (NCCC): (applies to residents who entered permanent care on or after 1 November 2025) The NCCC is a new means tested fee that will cover non-clinical costs like bathing, mobility assistance, and lifestyle activities. The government will continue to fully fund clinical care.
- A Hotelling contribution: (applies to residents who entered permanent care on or after 1 July 2025) is a means tested fee for residential aged care to cover day to day living costs like meals and cleaning and only applies to residents if the income and assets are above certain thresholds.
- An accommodation payment/contribution (RAD/RAC or DAP/DAC): This is for your accommodation in the home. Some people will have their accommodation costs met in full or part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. The Department of Human Services (Centrelink) will advise you which applies to you based on an assessment of your income and assets.
The amount you actually pay will be based on an asset and means test conducted by the Department. Further information on how these fees are calculated are included with this pack as well as a form “Permanent Residential Aged Care Request for a Combined Assets and Income Assessment” that needs to be completed and submitted to the Department of Human Services.
At CVL the maximum price that you can be charged for a room at CVL is a refundable deposit (RAD) of $330,000.00 or daily payments (DAP) of $68.80 or a combination of both.
You have 28 days after entering CVL to decide how you want to pay your accommodation payment. You can chose:
- A refundable accommodation deposit as a lump sum payment, the balance of which is refunded when you leave.
- A daily accommodation payment as a rental style payment that is paid on a regular basis, payable up to a month in advance, and is not refundable.
- A combination of the two.
Residents can choose to pay for their accommodation by a refundable deposit, a daily payment, or a combination of both. A refundable deposit is paid as a lump sum amount. A daily payment accrues daily and is paid periodically, for example monthly. A combination payment includes both a partial lump sum and daily payments.
You can choose to pay for your accommodation payment with both a part lump sum refundable accommodation deposit and ongoing rental style daily accommodation payments. You can negotiate the amount of lump sum and rental style payments with CVL.
Example of a combination payment for a room at CVL
A resident could pay, for example, 50% of the price by a refundable deposit of $165,000.00 and 50% of the price by daily payments of $34.40.
These prices are valid as of 1st November 2025. They are subject to change and will be adjusted quarterly in line with changes to the maximum permissible interest rate (MPIR which is currently 7.61% for the period 1 October 2025 to 31 December 2025).
With the introduction of the New Strengthened Aged Care Standards on 1st November 2025, residents that pay a RAD/RAC will have retentions deducted from this lump sum. The retention rate is set in legislation at 2% per annum (applied as a daily rate) and is calculated on the RAD or RAC balance. All deducted amounts reduce the total balance and therefore further reduce any future retention deductions.
The retention amount is calculated by multiplying the RAD or RAC balance by 2% then dividing that by 365. The retention amount is the same for each day until the RAD or RAC balance changes. Changes in the balance will change the retention deduction amount. This includes changes to the balance from retention and other deductions as well as changes in the balance due to top-ups. Retentions will continue for a 5-year period and can no longer be deducted after 5 years from the date the RAD/RAC is first paid.
INDEXATION ON DAILY ACCOMMODATION PAYMENTS
DAPs will be indexed on 20 March and 20 September each year in line with changes in the Consumer Price Index (CPI). These are the same dates the Age Pension increases. The first time DAPs are indexed will be 20 March 2026. The new DAP index number will be published prior to each DAP indexation day and is used to index DAPs paid by residents who DAP indexation applies to. Indexation will not apply to daily accommodation contributions (DACs).