Residential Care

Understanding fees and charges in aged care

Moving into a care home is a big decision and it is important to gain an understanding of the fees associated with your care and accommodation. Your fees may vary according to the type of care you require and also your financial situation. We recommend you seek financial advice before entering an aged care home to help you choose the right payment option for you.

To help ensure that care is affordable for everyone, the Australian Government calculates and regulates maximum daily fees and enforces limits as to how much you can be asked to pay for accommodation.


Care Fees


Basic daily fee

$61.96 per day


Means tested care fee

Determined by Services Australia

Care fees include the Basic Daily Fee and a Means Tested Care Fee.

Basic Daily Fee

This fee is set out by the Government and equates to 85% of the full pension. The fee amount will be reviewed by the government on the 20th March and 20th September each year in line with the pension increase. Everyone in aged care is required to pay this fee unless they are experiencing financial hardship which will be determined by Centrelink.

Means Tested Care Fee

This is an additional daily care contribution applicable to Residents who earn an income above the Pension. This fee is determined by Services Australia upon completing a means test and is capped annually and over a resident’s lifetime.



In addition to care fees you may also be required to pay a Refundable Accommodation Deposit (RAD) or alternatively a Daily Accommodation Payment (DAP). The amount that you are required to pay is based upon an individual’s assets and is determined by Services Australia upon completing a means test. After your Means Test, a RAD must be paid if your assets are over $59,500. The Maximum RAD is $550,000. Each Resident is to be left with $59,500.

For example if you had $259,500 asset value, you would be asked to pay a RAD of $200,000.

Murray Haven Homes is able to earn interest on this RAD while the Resident is in its care. When the Resident leaves the facility or sadly if they pass away, the RAD is fully refundable

Do you have concerns about affordability of accommodation fees? Ask us about us about government funded accommodation options.

To allow for flexibility there are three ways in which you can choose to pay for your accommodation.

Option 1

Refundable Accommodation

Payment (RAD)

Max $550,000

for a room



Option 2

Daily Accommodation Payment (DAP)

Max $125.67

for a room

This is equivalent to the interest Murray Haven would have earned if they had the RAD.
The DAP is not refundable.


Option 3

Combination Payment

Part refundable accommodation (RAD) deposit and part daily accommodation payment (DAP) based on the unpaid portion of the RAD.

Accommodation prices are accurate as at 20th March, 2023 but are subject to change. Final costs are confirmed on the date of admission (subject to receiving the assets and income assessment letter if you choose to carry out this assessment).

Provider Responsibilities

Murray Haven Homes Ltd. will complete an Aged Care Entry Record for each new resident on entry.  The Aged Care Entry Record includes details on the agreed price and the resident’s elected method of payment.  If the resident has not chosen their method of payment at the time the Aged Care Entry Record is first due to be submitted, these details will need to be updated once known and re-submitted by the service provider.

Financial Hardship

If you believe that you will face financial hardship in paying your aged care costs, you can ask to be considered for a financial hardship assessment.  Please contact the Department of Human Services on 1800 227 475 or the Department of Veterans’ Affairs on 133 254 to see if you are eligible for this supplement.

Further Assistance

The Department of Human Services Financial Information Service (FIS) Officers can provide detailed information regarding aged care fees and charges and the effect these fees might have on your pension or superannuation.  This is a free service for all Australian residents.  To speak to a Financial Information Service Officer please contact 132 300.

For additional general information, please refer to the following websites:

My Aged Care  Further information regarding fees:

The main entry point to the aged care system in Australia. It provides information and tools to assist and support older people in their care.