Nobody knows what nursing home costs are like from the get-go. There are various factors that play a role in how much you will pay for aged care accommodation. With the help of aged care services, you can discover how much and what you will be paying for. Here are the types of fees you will encounter when paying for aged care services.


The everyday fee

The nursing home costs coverage involves the basic daily fee for those living in an aged care facility. Aspects that will be paid for include personal care, meals, cleaning, laundry, medical services and power. Everyone who is living in the aged care home will have to pay this fee which is 85% of the annual age pension.


Paying for accommodation

Paying for accommodation involves the price of the room and its other requirements. The nursing home costs depends on whether your family member gets money fully or partly from the government. Other individuals may have to pay the accommodation costs in private.

There are different types of ways to pay this such as through a refundable accommodation deposit (RAD) or refundable accommodation contribution (RAC) which is a single payment put towards benefitting the facility. This lump sum can be refunded to the retiree if they move to another area or pass away. Another type of payment that contributes to nursing home costs is the daily accommodation payment (DAP) or daily accommodation contribution (DAC). This is like paying for rent to live in the aged care facility. You can also combine the two above options if you wish.

These different options can add to the confusion of nursing home costs but with the help aged care financial advice, you can find the best option for your loved one.


Tested fees

Nursing home costs also involve looking at what your means are such as your income and finances to evaluate how much you can chip into the expenses of living in an aged care facility. This determines what means-tested fees you must additionally pay for which can fluctuate depending on the trajectory of your financial assets.  A retiree who receives an age pension and a small income may have help from the government whereas if they have bigger earnings, they may pay partially or fully the nursing home costs. The limit for this fee is $28, 087.41 as of January 1st, 2021.


Temporary stay fee

Young woman assisting an old man in the wheelchair

If your family member is only planning to stay only for a few short days in the facility, then you can pay for the time you will be staying there. As if you are staying in a resort, you will be paying a fee priced the same as the daily fee. If you are attending a home that provides extra services, you may have to pay an additional fee to compensate for the higher quality of services provided.


Extra services

Other nursing home costs include the fees for additional benefits at the facility such as TV channel and newspaper subscriptions and hairdressing. Other luxuries include bigger and lavish rooms, internet access, phone by the bedside, therapy treatment and so on. This is only required if the retiree intends to pay for these additional fees.


There is a wealth of different and complex types of payments involved when covering nursing home costs. Being educated in what your payment options are is the best way to save money for your family and handle nursing home costs that will most benefit them. Getting financial advice can fill in the gaps and help you determine how to navigate nursing home costs.