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The Cost Of Aged Care

When discussing aged care there are a few different types of care this can refer to within Australia. Commonly, when referring to aged care, this is referencing residential care, otherwise known as an aged care home or nursing home. Other options that may spring to mind are in-home care or short-term, respite care. This information specifically looks at aged care delivered in a nursing home model.

The average cost of aged care in Australia varies from senior to senior. While the Australian government funds aged care providers to keep costs affordable, there may be a few fees to pay out of pocket. Generally, aged care costs heavily depend on a senior’s needs, such as the style of accommodation, amenities provided, and level of care required.

How do aged care costs work?

Australia’s government subsidises aged care homes and enforces maximum daily fees to ensure that they are affordable and accessible, which means they can pay for part or all of the costs. However, how much financial assistance is received will depend on the Australian Governments’ assessment of a senior’s income and assets.

After financial assistance, some seniors may need to pay for some aged care costs out of pocket. These costs will depend on their income and asset assessment and what type of care and accommodation they need.

Aged care costs in Australia and the different fees involved

Fees and costs of aged care can vary across facilities, but most fees can be classified into these main categories.

  • Basic daily fee
    The basic daily fee is the cost of day-to-day services, which everyone in an aged care facility must pay for. This involves meals, cleaning, laundry, heating and more.
  • Means-tested care fee
    The means-tested fee is the cost paid towards personal and clinical care. This is determined by a means assessment conducted by the Government, which considers a senior’s income and assets. For instance, if you or a loved one has a high income and significant assets, this often leads to a higher means-tested fee.

    There are daily, annual and lifetime limits on the means-tested care fee, which can change based on the government’s indexation. Once the annual and lifetime limits are reached, the means-tested care fees will no longer be required.

  • Accommodation costs
    A huge chunk of aged care costs consists of accommodation. Accommodation prices are set by each aged care home, which is determined by factors such as location and room size. The more space you or your loved one requires, the more expensive it may be.
  • Additional service fees
    Any other service paid for outside of personal or clinical care falls under additional service fees. These are optional and can include any hotel-type services, such as access to paid TV services or similar. Additionally, these services are not subsidised by the government, since their fees are set by the providers.

For more information on fees, visit My Aged Care.

What to look out for in an aged care provider

Aside from considering aged care costs, you or your senior loved one will have to consider several other factors. The goal is to find the perfect balance between a senior’s needs, budget and personal preferences.

Consider these factors when deciding on an aged care home:

  • The type of services — Not all homes offer the same services. Opt for a facility that has what you or your loved one needs.
  • The location — The best living spaces should offer what you or your loved one needs — whether it’s city views or green spaces.
  • The service quality — Seniors deserve only the best care. Opt for an aged care home that has excellent reviews from residents or their loved ones.
  • The types of accommodation — Look for places that have the room and space you need — whether it’s a studio or a 3-bedroom home.

LDK — your partner in aged care

At LDK, our Aspire Aged Care takes a completely different approach to aged care costs. At LDK, it is our vision that every senior Australian is to be treated with Love, Decency & Kindness in their ageing journey.

Aspire Aged Care delivers aged care differently to traditional aged care. We take a different approach to the traditional pricing within the retirement living and aged care sector. We centre our model around what matters most – our residents. We’ve taken the elements that make sense from both the retirement living and aged care sectors and left out the parts that don’t.

Whether you need independent living through to varying levels of care, you can discover senior living like no other at LDK. Take a look at our Greenway Views village in Tuggeranong and The Landings village in North Turramurra and see the incredible level of care for yourself.

If you’re interested in what LDK has to offer for yourself or a loved one, contact us today.

Book your tour today

If you’re considering aged care services for yourself or a loved one and are ready to tour an LDK village, enquire online or call 1300 535 000 today (Monday to Friday between 9 am and 5 pm) and our team will be happy to assist you.