Residential Care Fees (Updated for 1 Nov 2025)

These rules do not apply to people who entered residential care before 1 July 2014.

A person may need to move into residential care when they are no longer able to live safely at home. Their change in circumstances means they need to find a new home, which can better support their daily needs.

Permanent residential care bundles together:

• Accommodation

• Support with daily living activities, and

• Personal care.

The cost of residential care is heavily regulated under the Aged Care Act 2024 and is subsidised by Federal Government (taxpayers).  However, depending on a person’s financial means they may be asked to contribute towards their accommodation and ongoing living and care costs – based on a means-tested amount (MTA).

These rules are complex and you should always seek advice to understand which set of fees apply, what you will be asked to pay and the implications of restructuring your finances. The rules are changing on 1 November 2025.

Residential care fees can be broken down into 4 boxes as shown below:

The fees payable will depend on the person’s date of permanent entry into residential care, and their status. People who are classified as “Grandfathered residents” will contribute towards essential living expenses and care contributions under the old (pre 1 November 2025) rules. Grandfathered residents are those who:

• Entered care before 1 November 2025 (and have not opted into new rules) or

• Entered care from 1 November 2025 but were receiving or approved for a Home Care Package as at 12 September 2024.

Let us take away some of the stress. Contact us today to make an appointment to discuss your current or future aged care needs.

Bill Savellis

Senior Financial Adviser

Having navigated the Aged Care landscape for both of his parents, Bill understands how challenging it can be to make the right decisions for your future care needs. That's why he believes that everyone should have access to financial advice during this time. Bill has been a Financial Adviser for over 22 years, and is passionate about helping others access the financial advice they need. Drawing from his own experience in the financial sector, Bill develops strategic, personalised plans to support transitions to Aged Care or Home Care.

---

Disclaimer: Prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, Olive Grove Financial Advice recommends that you consider whether it is appropriate for your circumstances. Information in this article was correct and current as of 15 August 2025. Olive Grove Financial Advice is operated by Bill Savellis through The Financial Advisor (Australia) Pty Ltd ABN 72 619 546 431, who is a Corporate Authorised Representative (No. 1278394) of Havana Financial Services Pty Ltd.