The way Australians pay for residential aged care, or nursing homes, is changing from November 1.

Payment arrangements^[1] will be grouped into four main areas:

There will be no changes^[2] for residents who are living in aged care homes on October 31.

In addition, new residents who are assessed as having low financial means will not be affected^[3]. These are typically full pensioners without major assets who have an income of less than A$34,762 (for a single pensioner, slightly less if one of a couple) and assets of less than $63,000. The government will cover the full costs of their care.

All low-means residents will continue to pay a basic daily fee to contribute to their everyday living expenses. This is calculated as 85% of the basic single age pension, which is $65.55 at the current pension rate. The government also pays providers an extra Hotelling Supplement^[4] to top up their funding.

Clinical care will be fully subsidised for all

The government will fully fund^[5] all clinical care costs for all residents in aged care homes from November 1.

Who will have to pay for non-clinical care and everyday living?

New means tested fees will be payable as a contribution to the costs of non-clinical care and everyday living for new residents who have higher means.

The government has published the Schedule of Fees and Charges^[7] that will apply from November 1 as well as a Fee Estimator^[8]. The following provides a simplified guide to these fees: