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Types of costs in aged care homes
Care in aged care homes is expensive to provide. However, government subsidies ensure that aged care fees are affordable to everyone.
Australia has an ageing population. There are currently 2.7 million people who are aged 65 years or more, and this number will more than double in the next 30 years. To meet the increasing demand for aged care and its high cost to the taxpayer, people entering aged care homes are being asked to make a contribution towards the cost of their care, if they can afford to.
Care fees
People entering care (excluding respite care (more information)) may be asked to pay an income-tested fee as well as a basic daily care fee. Under the income-testing arrangements, the government will continue to make the largest contribution towards meeting aged care costs for the overwhelming majority of residents.
Read more: Daily care fees
Accommodation payments
As well as daily care fees, you may be asked to pay either an accommodation bond (more information) or an accommodation charge (more information). The accommodation payment you may be asked to make is linked to your assets, whether you are a pensioner, and the level of care you need.
Read more: Accommodation payments
Financial hardship
The government has also introduced provisions for residents facing genuine difficulties in meeting their costs. Financial hardship assistance is available for daily care fees, income-tested fees, accommodation bonds and accommodation charges.
Read more: What if I can’t afford to pay?
Common questions on this topic:
- How much does residential aged care cost?
- What are concessional residents?
- I think I need to get financial advice before looking into aged care. Is there someone who could help with that?
See more common questions on this topic | See all common questions
