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Understanding the costs of aged care

Understanding the costs of residential aged care

The financial aspects of moving your loved one into residential aged care are very important considerations but at an already stressful time, the costs, fees and various funding options can be confusing and difficult to understand.

It’s comforting to know that at Vincent Court, we provide the highest possible quality of care to people with an assessed need, often regardless of their financial circumstances. Apart from the costs outlined below, residents are only required to pay for their personal items and expenses such as medication, medical and allied health appointments, clothing, personal care items and hairdressing.

Our two easy-to-read tables outline the costing options for Accommodation and Care and Support:

Accommodation payment Examples (at 01/04/22)
Option 1: Fully refundable accommodation deposit (RAD)
This is a once-off lump sum payment that is refunded in full when the resident leaves. There are no exit fees deducted from this deposit. At Vincent Court, the RAD for a standard studio room with ensuite is $320,000.
All upfront
$320,000 deposit (RAD)
Option 2: Daily accommodation payment (DAP)
You can choose not to pay an upfront RAD and pay an interest charge each month instead. This fee is calculated daily based on the amount of the unpaid RAD. The interest rate used to calculate a Daily Accommodation Payment is called the Maximum Permissible Interest Rate (MPIR). This is set by the Government and reviewed quarterly. These payments are not refundable
OR A daily payment
(Based on $320,00 RAD)
$35.68/day (DAP) MPIR 4.07%
Option 3: A combination of RAD and DAP
Residents can choose to pay a combination of a part RAD and part DAP, for example, a deposit of $200,000 (RAD) and a daily payment on the unpaid amount of $120,000 (DAP). Only the RAD lump sum deposit is refundable when the resident leaves.
OR A combination
(Based on $320,000 RAD)
Deposit $200,000 (RAD)
Plus $13.38/day (DAP)
Option 4: Government supplement
The Government may provide assistance to cover the cost of your accommodation payment based on an income and assets assessment that will determine if you qualify for full Government support, or will be required to contribute towards your accommodation in one of 3 options:
• A refundable accommodation contribution (similar to a RAD but capped at the lump sum equivalent of Government supplement rates)
• A daily accommodation contribution (similar to a DAP but capped at Government supplement rates)
• A combination of a RAC and DAC of your choosing
Set Daily Care FeesCosts (at 20/03/22)
A basic daily care fee
This fee is paid by all residents to cover living expenses such as meals, laundry, personal and nursing care and electricity. This fee is set by the Government and is standard in every Australian aged care facility. It is currently set at 85% of the pension and is adjusted each March and September in line with changes to the Age Pension.
A means-tested daily care fee (MTCF)
This is an additional contribution towards the cost of a resident’s daily care. The amount of this fee is determined by a This is an additional contribution towards the cost of a resident’s daily care. The amount of this fee is determined by a resident’s
income and assets assessment. It is reviewed quarterly and may vary over time if a resident’s income, assets or cost of care change.
Determined by the Government: Services Australia
The annual cap that applies to the MTCF:$29,399.40
The lifetime cap that applies to the MTCF:$70,558.66

To estimate the amount your loved one may be asked to pay towards their care, visit, search for ‘fee estimator’ and complete the form. Some families also seek advice from a Financial Planner.

Our Admissions Team is here to help and support you through this journey. If you have any questions, call us on (02) 6562 6062 or email us at

For more information, download our Aged Care Guide.