Residential aged care costs 2025-26 — what you actually pay (post 1 Nov 2025 reforms)

From 1 November 2025, residential aged care fees in Australia changed substantially for new entrants. The old Means-Tested Care Fee (MTCF) was replaced by two new contributions — the Hotelling Supplement Contribution (HSC) and Non-Clinical Care Contribution (NCCC) — and clinical care became 100% government-funded (residents no longer pay for nursing, physio, podiatry). The Basic Daily Fee and accommodation arrangements (RAD/DAP) carried over largely unchanged. People already in residential care on or before 31 October 2025 stay on the old MTCF structure.

This guide is the honest 2025-26 fee breakdown for someone considering residential aged care today. Verified against My Aged Care — aged care home costs and Department of Health — means-tested fees as at 28 May 2026. Figures are indexed and change at least twice a year — verify on My Aged Care before relying on any specific number for a placement decision.

NestWise doesn't have an aged-care calculator yet. For your specific situation, the official My Aged Care fee estimator is the authoritative tool. This guide explains the figures so you can understand what the estimator returns.

The four fee buckets

So the maximum any resident pays in fees per day (before accommodation): $66.80 + $22.15 + $105.30 = $194.25/day ($70,901/year). Plus accommodation (RAD or DAP). Most residents pay materially less because the HSC and NCCC are asset-tested with substantial thresholds.

Basic Daily Fee — everyone, fixed

$66.80/day (~$24,382/year) covers general living costs — meals, laundry, electricity, building maintenance. It's set at 85% of the single base Age Pension and indexed each 20 March and 20 September. Doesn't depend on your income or assets — everyone in residential aged care pays it.

Hotelling Supplement Contribution (HSC) — new from 1 Nov 2025

Replaces part of the old MTCF. The HSC is a means-tested contribution toward "hotelling" services — accommodation, food, energy, building infrastructure. Caps at $22.15/day (~$8,085/year).

Asset thresholds:

Asset thresholds shift twice a year with indexation. For most asset-tested residents, the HSC is the first new contribution that kicks in.

Non-Clinical Care Contribution (NCCC) — new from 1 Nov 2025

Replaces the rest of the old MTCF. The NCCC is a means-tested contribution toward non-clinical care services (personal care, social support, lifestyle). Caps at $105.30/day (~$38,435/year) AND has a lifetime cap of $135,319 OR 4 years of payment, whichever comes first.

Asset thresholds:

After the lifetime cap of $135,319 is reached (or 4 years of NCCC payments — usually whichever comes first), the resident stops paying NCCC. They continue to pay the Basic Daily Fee + HSC + accommodation.

Clinical care — now $0 to the resident

Pre-November-2025: residents paid a portion of clinical care (nursing, physio, podiatry) through the old MTCF.

Post-November-2025: clinical care is fully government-funded. The resident pays nothing for clinical services. This is the single biggest cost shift in the reforms for most residents.

Accommodation — Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)

Separate from the daily fees, residents pay for accommodation in one of two ways (or a combination):

• Refundable Accommodation Deposit (RAD) — a lump sum bond paid up front. Held by the facility, refunded when you leave (less any agreed amounts deducted, e.g. retention). For example: an agreed price of $500,000 RAD = pay $500,000 up front, receive $500,000 back when leaving.
• Daily Accommodation Payment (DAP) — the daily interest equivalent of the agreed RAD, paid as a regular fee. Calculated at the Maximum Permissible Interest Rate (MPIR) which is currently 7.96% (effective 1 April 2026, indexed quarterly). For example: an agreed price of $500,000 at 7.96% MPIR = ($500,000 × 0.0796) / 365 = ~$109/day.
• Combination — pay part as RAD, rest as DAP. Common when the resident has some liquid funds but doesn't want to pay the full RAD upfront.

Maximum RAD without pricing authority approval: $758,627. A facility can charge more, but needs Aged Care Pricing Authority approval first. The $758,627 cap is indexed.

For low-asset residents (assets below the threshold), government accommodation supplements cover accommodation costs entirely. The resident pays $0 for accommodation. The threshold currently sits around $252,000 of total assets (verify with My Aged Care for your situation).

Worked example — couple, mum entering aged care

Scenario: Mum, 82, entering residential aged care. Owns 50% of the family home (jointly with dad). Personal assets $400,000 (super + savings + a small share portfolio).

Daily fees:

• Basic Daily Fee: $66.80/day ($24,382/yr) — fixed
• HSC: Mum's non-home assets are over $355,366 → full cap $22.15/day ($8,085/yr)
• NCCC: Mum's non-home assets are below $532,055 → $0/day

Daily fee total: $88.95/day ($32,467/yr)

Accommodation:

• Facility's agreed price: $500,000 RAD
• Options:
  • Pay full $500,000 RAD — refundable on departure
  • DAP only: $500,000 × 7.96% / 365 = ~$109/day ($39,800/yr)
  • Combination: pay $200,000 RAD + DAP on remaining $300,000 = $200,000 + ~$65.40/day ($23,871/yr DAP)

If Mum chose full RAD, the bond is refundable and reduces ongoing cash outflow. If full DAP, she retains the $500,000 liquidity but pays $39,800/year on top of fees. The combination is common when families want some liquidity preserved.

Annual cash cost (full RAD chosen): ~$32,467 fees + $0 accommodation (RAD already paid) = $32,467/year cash plus $500,000 bond

Annual cash cost (full DAP chosen): ~$32,467 fees + $39,800 DAP = $72,267/year cash, no bond

What the government pays

For each resident, the government pays the Australian National Aged Care Classification (AN-ACC) subsidy direct to the facility — covering the clinical care + most of the non-clinical care + the accommodation supplement for low-asset residents. The amounts vary by classification (assessed care need) and are not directly visible to families.

What you (or the family) see is the resident's personal contribution = Basic Daily Fee + HSC + NCCC + accommodation. That's what's billed monthly.

The lifetime cap on NCCC

The NCCC has a lifetime cap of $135,319 (or 4 years of NCCC payments — usually 4 years runs out first for residents paying the full $105.30/day cap). Once reached, the NCCC stops being charged.

The Basic Daily Fee, HSC, and accommodation continue regardless of the lifetime cap. So a long-term resident eventually pays "less per day" once the NCCC is capped out.

When the Means-Tested Care Fee (MTCF) still applies

For residents who entered residential care on or before 31 October 2025, the OLD MTCF structure continues:

• One income-and-asset-tested daily fee combining clinical + non-clinical care
• Annual cap (was ~$33,000) + lifetime cap (was ~$80,000)
• Different threshold structure to the new HSC + NCCC

If you're already in the MTCF system, you stay there. New entrants from 1 Nov 2025 are on the HSC + NCCC.

Where to get a personalised estimate

1. My Aged Care fee estimator — the official tool. Walks through your assets and income, tells you what HSC + NCCC + Basic Daily Fee will apply. Free.
2. Centrelink Income and Assets Assessment — required before entering residential aged care. Form SA457 lodged with Centrelink determines your exact contribution.
3. A facility's information meeting — most facilities will run through their specific pricing and what your agreement would look like before you sign.
4. A specialist aged-care financial adviser — paid advice, but valuable when assets are substantial and there are decisions to make (sell the home vs keep it, RAD vs DAP, family loans).

Related NestWise guides

• Support at Home explained — replaced Home Care Packages 1 Nov 2025
• Carer Payment vs Carer Allowance — for the family carer (not the person in aged care)
• Single Assessment System — what replaced ACAT/RAS