Understanding Aged Care Fees

Costs entering residential aged care

There are several costs associated with permanent care in an aged care home. Please find a summary of the fees that you may be asked to pay in a Heritage Care home.

Care and accommodation costs

Care Fees:

Basic daily fee – An amount that everyone pays for the day-to-day services they receive at the aged care home.

Means tested care fee – A contribution that some people pay toward the cost of their care, determined by a means assessment by Services Australia.

Accommodation costs: An amount that some people pay to contribute towards or cover the full costs of their room, depending on their means assessment.

Other services cost – Additional Services: All Heritage Care homes include Additional Services that go beyond the minimum care and service requirements and has been bundled into the Advantage Package (see below) and applied as a daily fee.

Advantage Package

We have meticulously curated our Additional Services Package, aptly named the Advantage Package, with the utmost care to ensure that our esteemed residents receive services that exceed the standard level of care.

This comprehensive offering revolves around service enhancements encompassing additional dining experiences, holistic wellbeing and social activities, captivating entertainment and technology offerings, personalised equipment and services, as well as room extras designed to elevate their experience within our residence.

Rest assured, our commitment is unwavering – residents entrusted to our care shall receive the highest standard of professional, individualised care, and deeply respectful attention. Our array of lifestyle choices has been thoughtfully crafted to bestow benefits upon every resident, fostering an environment where their contentment and welfare is paramount.
Terms and conditions apply. For the full list of services, including terms and conditions, please contact the care home.
Our dedicated Client Service Team can discuss fees and charges in more detail during your tour or upon application.

Residential aged care costs are dependent on each person’s circumstances.

If you are moving into an aged care home long-term, the fees you pay will be determined by your individual financial circumstances. This will be assessed by Services Australia by completing an Income and Assets assessment. Based on the outcome of this means assessment you may fit into one of these three indicative scenarios.
Residents with minimal assets and income (as assessed by the Government to receive full or partial support) will not be subject to RAD/DAP costs. Fully Supported residents will pay only a Basic Daily Fee (which is calculated at 85% of the basic single Age Pension) whereas Partially Supported residents will be required to pay an additional Contribution as determined by the Government.
With the exception of Accommodation Fees/Deposits (which are negotiated with Heritage Care directly), all other fees and charges are mandated by the Australian Government (i.e. Department of Health, Department of Veterans Affairs, etc).

Payment Options for Accommodation Cost

There are four ways you can pay for your accommodation cost:

Option 1

Daily Accommodation Payment (DAP) Instead of paying for your accommodation as a lump sum, you can choose to pay a daily fee. The amount you pay is calculated based on the MPIR (maximum permissible interest rate, set by the Australian Government) current on the day you move into permanent care.

Option 2

Refundable Accommodation Deposit (RAD) This option is a lump sum accommodation payment. The full amount of the deposit is refunded when you leave the aged care home less any amounts you have agreed to deduct.

Option 3

Combination Payment Part refundable accommodation deposit (RAD) and part daily accommodation payment (DAP), with the part RAD being refunded when you leave the aged care home.

Option 4

Drawdown Payment This option is like the combination payment, but the daily accommodation payment component is deducted from your refundable accommodation deposit. The balance of the deposit is refunded when you leave the aged care home.

Should I seek financial advice?

We recommend seeking independent financial advice when you start looking to move into a residential aged care home to understand your situation and the best payment option for you.
Services Australia’s Financial Information Service (FIS) is a free service available to everyone. FIS officers can show you how to make informed financial decisions. They can also help you to understand the financial implications of your aged care costs.

To find out more about FIS, or to make an appointment, call 132 300 and say “Financial Information Service” when asked why you are calling.

For more information and guidance on financial matters, you can also visit My Aged Care’s financial support and advice page.

Important Information For Residents

We understand choosing the ideal aged care home is difficult and getting hold of important information is time consuming. To help provide peace of mind, we have gathered a range of helpful resources that will allow you to easily keep tabs on relevant topics and quickly navigate to the right information.

Heritage Care doesn’t just offer high quality services, we are passionate about helping our residents and that means supporting all key stakeholders involved.

Click on headings to learn more.

Services Australia

Services Australia was created to ensure the delivery of advice and high quality, accessible social, health and child support services and payments.
The website has a range of useful information for older Australians, from finding payments and calculating your pension to working past the pension age and planning your retirement. Follow the link to learn more about the services that could be available to you.

read more

My Aged Care is a great way you and your family can better understand the aged care system. It gives you the opportunity to read personal stories of others who have experienced issues and explains how they were able to overcome their own situation. This resource also provides users with plenty of useful information about what aged care to consider, what’s involved with caring for someone and how you can go about caring for yourself, a family member or a friend. Visit the website to find out more.

read more

The Department of Social Services is in place to improve the lifetime wellbeing of people and families in Australia. The department encourages older people to live active and independent lives and works hard to deliver quality, affordable and accessible aged care for older people. To discover more about the latest announcements relating to the aged care sector, go directly to their website.

read more

The Aged Rights Advocacy Services offer a free and confidential service to older people who are living in retirement villages, consuming community aged care services or government subsidised aged care services. Their service is aimed at giving older persons more control over goods, services and quality of life to deliver those people a greater sense of empowerment. Follow the link to find out more about the vision and purpose of ARAS.

read more

The Council On The Ageing Services offer a free and confidential service to older people who are living in retirement villages, utilising community aged care services or government subsidised aged care services. Their service is aimed at giving older persons more control over goods, services and quality of life to deliver those people a greater sense of empowerment.

Follow the link to find out more about the vision and purpose of COTA.

Alzheimer’s Australia represents the 1.2 million people in our country who are either living with dementia or directly involved in care. They are passionate about advocating the needs of people living with dementia as well as the needs of their families and carers. The organisation is committed to providing support services and education in order to achieve a dementia-friendly Australia. Visit the website to learn more about the organisation.

read more

Steps to Enter an Aged Care Home

Whether you’re looking for respite care, permanent care, dementia care or palliative care, download this booklet so you, your family, carers and friends understand how to access care in an aged care home, the process for moving into an aged care home and what to expect when you are there.

We understand this may be an emotional and difficult time. Call one of our friendly Client Service Managers to answer any questions.


We are here
to help

Leaving your own home and entering an aged care home isn’t an easy decision. But it doesn’t have to be a daunting experience. Let us guide you through the process step-by-step. We will support you from your initial enquiry, answering your questions on the types of care we offer, finding a residence that suits you, to explaining potential subsidies, understanding the payment options and application process.

Chat to one of our friendly Client Services Managers.

View our contact list