How much does an aged care home cost in 2026?

Understanding how much an aged care home will cost can be confusing, particularly because what one person pays may be very different from what another person pays.

Your costs depend on your financial circumstances, the aged care home and room you choose, and importantly, which fee arrangements apply to you.

Major changes to residential aged care fees came into effect on 1 November 2025. Most people entering permanent residential aged care now are covered by the new fee arrangements, although some people are protected by the Australian Government’s “no worse off” principle and remain under the previous arrangements.

Here is what you need to know.

What fees might I pay in an aged care home?

For people covered by the 1 November 2025 fee arrangements, aged care home costs can include:

• a basic daily fee;
• a hotelling contribution, depending on your income and assets;
• a non-clinical care contribution, depending on your income and assets;
• accommodation costs; and
• an optional Higher Everyday Living fee if you choose additional everyday living services offered by your provider.

Not everyone pays every fee.

A means assessment looks at your income and assets and helps determine how much you may need to contribute and how much the Australian Government will contribute towards your care and accommodation.

The basic daily fee

Every permanent resident can be asked to pay a basic daily fee, regardless of their financial circumstances.

This contributes towards everyday living services such as meals, cleaning, laundry and facilities management.

The maximum basic daily fee is set at 85 percent of the single basic Age Pension and is indexed on 20 March and 20 September each year.

As at 20 September 2026, the maximum basic daily fee is $68.93 per day, which is approximately $25,159 per year.

Because the rate changes with indexation, always check the current amount when planning for care.

What is the hotelling contribution?

Some residents covered by the 1 November 2025 arrangements may also pay a hotelling contribution.

This contributes towards the cost of everyday living services such as meals, cleaning and laundry. How much you pay is determined by your income and assets.

As at 20 September 2026, the maximum hotelling contribution is $22.15 per day.

People with lower income and assets may pay less or nothing at all. Services Australia will determine the amount that applies to you.

What is the non-clinical care contribution?

People with greater financial means may also be required to pay a non-clinical care contribution, often shortened to NCCC.

The NCCC contributes towards non-clinical care and support, such as assistance with bathing and mobility and participation in lifestyle activities.

Clinical care is treated differently and is not funded through your NCCC.

As at 20 September 2026, the NCCC is capped at $109.45 per day.

There is no annual cap, but there is a lifetime cap. As at 20 September 2026, the lifetime cap is $140,652.80.

You will stop paying the NCCC once you reach the lifetime cap or have paid the contribution for four cumulative years, whichever occurs first.

Does everyone who enters aged care now pay the new fees?

No.

There are different fee arrangements depending on your circumstances.

If you entered permanent residential aged care on or before 31 October 2025, your existing fee arrangements generally continue while you remain in care unless you choose to opt into the newer arrangements.

There are also protections for some people who were receiving a Home Care Package, or who had been approved and were waiting for a Home Care Package, on or before 12 September 2024.

These people may be covered by the Australian Government’s “no worse off” principle when they later enter residential aged care and may continue under the 1 July 2014 fee arrangements.

Under those arrangements, fees can include the basic daily fee and a means tested care fee rather than the newer hotelling contribution and NCCC.

This is why it is important not to rely on what a friend, neighbour or family member pays as an indication of your own likely aged care costs.

How much will accommodation cost?

Accommodation is separate from your daily care and living costs.

Aged care homes publish their room prices, allowing you to compare accommodation before choosing a home.

Whether you pay the full room price, contribute towards it or receive Australian Government assistance will depend on your financial circumstances and means assessment.

If you are required to pay the agreed room price, payment options can include:

Refundable Accommodation Deposit (RAD)
A lump sum paid to the aged care home.

Daily Accommodation Payment (DAP)
A daily payment rather than paying the room price as a lump sum.

A combination of RAD and DAP
You can pay part of the agreed amount as a lump sum and the remainder through daily payments.

People receiving government assistance with their accommodation may instead pay an accommodation contribution.

Before signing an agreement, make sure you understand the advertised room price, the payment options available to you and the effect different payment methods may have on your finances.

What is Higher Everyday Living?

Higher Everyday Living allows an aged care home to offer residents an agreed higher standard of everyday living services for an additional fee.

These might relate to areas such as food and dining, entertainment or other everyday living services above the home’s standard offering.

Higher Everyday Living services are optional. You cannot be required to purchase them as a condition of receiving aged care.

Make sure you understand exactly what is included, how much it costs and the terms for changing or cancelling the arrangement before agreeing to a Higher Everyday Living fee.

How do I find out what I will actually pay?

To establish your actual contributions, you will generally need an aged care means assessment through Services Australia.

Once this has been completed, Services Australia will provide a fee advice letter explaining the fees and contributions that apply to you and whether you are eligible for assistance with your accommodation costs.

You can have your means assessed before entering an aged care home. A pre-entry fee advice letter is generally valid for 120 days.

My Aged Care also has an aged care home fee estimator that can help you estimate your likely costs before making a decision.

What if I can’t afford aged care?

Being unable to afford the standard fees does not necessarily prevent you from accessing aged care.

Financial hardship assistance may be available in some circumstances. If you’re experiencing financial hardship and meet the eligibility requirements, the Australian Government may help with some aged care fees and accommodation costs.

Choosing an aged care home

Cost is important, but it is only one part of choosing the right aged care home.

Consider the home’s location, clinical care, staffing, lifestyle and activities, meals, environment, culture and its ability to support your individual needs.

Where possible, visit the homes you’re considering and ask for a clear explanation of all fees and charges before signing an agreement.

You can search and compare aged care homes through Aged Care Guide. If you’re finding it difficult to navigate the options or work out what comes next, our Care Concierge team can also help you through the process.

Last reviewed: 2 October 2026

Fees and thresholds are indexed periodically. Check My Aged Care for the latest rates.