What “good treatment” should look like in Australia

For most Australians, aged care only becomes “real” when a fall, a diagnosis, or sheer exhaustion in the family forces a decision. Suddenly you’re trying to decode a new language: ACAT assessments, RADs and DAPs, means tests, daily fees, waiting lists, “higher services”, star ratings — all while someone you love is vulnerable and time matters.

Australia’s system is meant to work like a partnership: the government subsidises care, and people contribute based on their means. In practice, it can feel like a maze with price tags attached. Here’s the clearest way to understand what aged care costs now, how much control you have over where you end up, and how you can judge — and demand — respectful treatment.

The two big pathways: home first, then residential (but not always)

Most people start with support at home: help with showering, meals, cleaning, transport, nursing or allied health. Since 1 November 2025, Australia has been moving into a new in-home care model called Support at Home, replacing the former Home Care Packages program (with a later transition planned for CHSP).

Residential aged care (an “aged care home”) is for people who can’t be safely supported at home — or whose care needs are too complex.

The hard truth: the “pathway” isn’t always linear. If the right home support isn’t available quickly, families can be pushed toward residential care earlier than planned — not because it’s best, but because it’s available.

What residential aged care costs: the three core buckets

Residential aged care costs are usually made up of:

1. Everyday living / basic living costs

2. Care costs (means-tested for some people)

3. Accommodation costs (often the biggest number)

1) The Basic Daily Fee (almost everyone pays it)

The basic daily fee covers everyday living like meals, laundry and general living services. It’s set as 85% of the single basic Age Pension and indexed twice a year.

As at the current published rate, the maximum basic daily fee is $65.55/day (about $23,925.75/year).

That’s the “entry price” before you even get to care and accommodation.

2) Means-Tested Care Fee (depends on your income/assets)

Some residents pay an additional means-tested care fee, based on a Services Australia means assessment.

My Aged Care publishes the current ranges and caps. At present, the means-tested care fee can be $0 to $403.80 per day, with annual and lifetime caps (currently listed as $35,238.11/year and $84,571.66 lifetime, indexed).

If you choose not to disclose your financial details, you can be treated as “means not disclosed” and asked to pay maximum applicable means-tested fees and the agreed accommodation amount.

3) Accommodation: RAD, DAP, and the new retention reality

Accommodation is where the numbers can become confronting.

There are two common ways to pay:

• RAD (Refundable Accommodation Deposit): a lump sum (often funded by selling the family home)

• DAP (Daily Accommodation Payment): a daily “rent-style” payment instead of the lump sum

My Aged Care explains that daily accommodation payments work like rent — they’re not refunded when you leave.

There is also DAC (Daily Accommodation Contribution) where the government contributes to accommodation depending on your means assessment.

The cap that matters

From 1 July 2025, the government lists the maximum accommodation payment amount as $758,627 (indexed annually). Homes can charge above that only with approval through the Independent Health and Aged Care Pricing Authority (IHACPA).

The “refund” is no longer always 100%

A major shift families need to understand: providers may retain a portion of a lump-sum deposit over time.

Government information states that retentions can be deducted from refundable deposits, and after 5 years in care, retentions can no longer be deducted (with the 5-year period starting when the deposit is first paid).

Public reporting around the reforms describes retention as up to 2% per year, capped at 10% over five years, depending on the agreement.

That changes the old assumption — “we’ll get the RAD back in full” — into “we’ll get most back, but not necessarily all.”

So what does aged care actually cost per week?

There is no single price, but here’s the practical way to think about it:

• Base cost floor: the Basic Daily Fee (~$65.55/day)

• Add means-tested care fee: could be $0 or could be significant (but capped over time)

• Add accommodation: either a daily rate (DAP) or a lump sum (RAD) tied to the home’s room price and your means assessment

• Optional extras / higher everyday living services: increasingly common in marketing, and easy to say yes to under stress (always read the fine print)

If you want a personalised estimate, Services Australia provides guidance on calculating expected contributions, based on your financial details and the type of care.

Can you choose your facility location?

Yes in theory — constrained by availability, urgency, and your budget

Australia doesn’t “assign” you a home the way a school catchment might. You can search and approach providers, compare homes, and decide where you’d prefer to live.

My Aged Care explicitly encourages using the Find a provider tool to search homes by area and even map them near family, transport and familiar places.

But real-world choice depends on five factors:

1. Bed availability in your preferred suburb/region

2. Whether the home can meet clinical needs (dementia supports, bariatric care, palliative care, behaviours of concern, etc.)

3. Your assessed eligibility and timing (crisis admissions reduce options)

4. Room price and your capacity to pay (RAD/DAP expectations differ widely)

5. Waiting lists and “first acceptable offer” pressure (families often take what’s open)

The “distance dilemma”

Many families aim for “close to us” — but the best practical choice can be “closest good home with the right care and a stable workforce.” That may be 20–40 minutes away, not five.

A smart strategy is to shortlist two rings:

• Ring 1: “ideal location”

• Ring 2: “still visitable, but wider net”

How will customers be treated? The standard you should expect — and how to check it

Aged care residents aren’t “patients in storage.” They are customers with rights, protected by regulation — and, since 1 November 2025, Australia has moved to a more explicitly rights-based Aged Care Act framework.

1) Rights on paper: know what you can demand

My Aged Care notes that a Statement of Rights replaced the Charter of Aged Care Rights on 1 November 2025.

(Older resources still reference the Charter under the previous Act framework, but the direction is the same: dignity, safety, respect, choice, privacy, and involvement.)

2) Quality signals you can actually use: Star Ratings

The federal government runs Star Ratings for residential aged care, designed to help families compare homes. Homes receive 1 to 5 stars based on multiple sub-categories and an overall rating. 

The Aged Care Quality and Safety Commission also explains its role in the compliance component of ratings.

Use Star Ratings like you’d use a hotel rating — not as gospel, but as a filtering tool:

• If a home is 1–2 stars, ask why before you even tour.

• If it’s 4–5 stars, still tour — good systems can coexist with a poor “feel” for your person.

3) The lived experience test: what to look for on a tour

When you walk in, you can learn more in 20 minutes than from 20 brochures. Look for:

• Smell and noise: clean, calm, not “shut-down” quiet

• Call bells: are they ringing endlessly?

• Staff engagement: are staff speaking to residents, not over them?

• Dining: real choice, support for those who struggle, dignity preserved

• Personalisation: residents’ rooms and common spaces feel lived-in

• Skin integrity and hygiene: basic clinical diligence shows everywhere

• Management visibility: can you meet the care manager or director?

Ask blunt, respectful questions:

• “What is your staff turnover like?”

• “How do you manage complaints — and can I see the process?”

• “How do you involve families in care planning?”

• “If Mum refuses a shower for three days, what happens?” (You want a humane answer, not punishment or neglect.)

What to do if treatment is poor: complaints and advocacy

If something feels wrong, you have options — and you don’t have to do it alone.

Independent advocacy (free)

The Older Persons Advocacy Network (OPAN) provides free, confidential advocacy, and operates the Aged Care Advocacy Line on 1800 700 600.

Complaints to the regulator

The Aged Care Quality and Safety Commission accepts complaints and explains its process; it notes a complaint generally needs to be finalised within 90 days unless there’s a reason it takes longer.

They list contact options including 1800 951 822 and an online form (and a separate line for food/nutrition complaints).

You can also start through My Aged Care to lodge concerns and receive a reference number.

The truth is that “choice” exists — but planning creates it

If you plan early, you usually get:

• more time to compare homes,

• more power to negotiate accommodation and extras,

• better odds of staying close to family,

• and a higher chance the older person experiences aged care as life with support, not life on someone else’s timetable.

If you plan late (crisis entry), choice collapses to: “Where can we get a bed?”

🔹 Aged care in Australia — the fees explained in 60 seconds

If you remember nothing else, remember this: aged care fees fall into three buckets.

1️⃣ Basic Daily Fee

• Paid by almost everyone

• Covers meals, laundry, cleaning and day-to-day living

• Set at 85% of the single Age Pension

• Currently about $65 per day (indexed twice a year)

2️⃣ Means-Tested Care Fee

• Depends on income and assets

• Some people pay nothing, others pay extra

• Capped annually and over a lifetime, so it doesn’t grow forever

• If you don’t complete a means assessment, you can be charged the maximum

3️⃣ Accommodation Costs

You pay either:

• a lump sum (Refundable Accommodation Deposit – RAD),

• a daily payment (Daily Accommodation Payment – DAP),

• or a combination of both

👉 Important change: Some providers can retain part of a lump sum over time (often up to 10% over five years). Always ask before signing.

Bottom line: Two people in the same room can pay very different amounts — it’s all about means testing and how accommodation is structured.