When you move into residential care you will be asked to contribute towards the cost of your care but the government also pays a large part of the costs for most residents.
The fees may look confusing as they are divided into four categories but each category has a different purpose.
How much you will be asked to pay for your accommodation will depend on the facility and possibly even the room that you choose. You can check the maximum prices on the facility’s website or at www.myagedcare.gov.au . If you only have low levels of income and assets (and qualify as a low-means resident) the government will subsidise this cost and you may pay a lower fee than is advertised.
How much you are asked to contribute towards your cost of care will depend on your income and assets. All residents are asked to pay the basic daily fee which is set at an amount equal to 85% of the basic single rate of age pension. You will only pay more than this (as a means-tested fee) if you have income and assets over certain thresholds.
The extras fees can be mandatory or optional and negotiated with the facility as a set price.