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Tanzila November 3, 2025 No Comments

How Much Does Aged Care Cost in Adelaide? (2026 Funding Guide)

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Quick Summary: Aged care costs in Adelaide are broken into four main fees: Basic Daily Fee (everyone pays), Accommodation Cost (room price), Means-Tested Fee (based on finances), and Optional Extra Services. The government provides subsidies for most people, and costs vary based on your financial situation and chosen facility.

Introduction: Understanding the Cost of Aged Care in Adelaide

Understanding the cost of aged care is often the most stressful part of the journey for Adelaide families. You’re already dealing with emotional decisions, and financial concerns can make everything feel overwhelming.

The good news is that the costs are broken into clear parts, and the government provides subsidies for most people. You’re not expected to pay the full cost of care alone.

Important Note: New Aged Care Act Changes

As of November 1, 2025, the new Aged Care Act has introduced changes to the fee structure for new residents. This guide covers the costs for both new residents and those already in care, so you have complete clarity regardless of your situation.

In this comprehensive guide, we’ll break down the four key fees you may be asked to pay in an Adelaide aged care home, using the latest 2026 figures and regulations.

The 4 Key Types of Aged Care Fees

Think of aged care fees in four clear parts: Everyone pays Fee #1. You might also pay Fees #2, #3, and #4, depending on your financial situation and preferences.

Part 1: The Basic Daily Fee (Everyone Pays)

This is the most straightforward fee and applies to every resident in aged care.

What is the Basic Daily Fee?

This is a standard fee paid by everyone who enters an aged care home. It covers your day-to-day living costs like meals, cleaning, laundry, utilities, and basic amenities.

How much is it?

It is set by the government at 85% of the single basic Age Pension.

2026 Cost Example

As of late 2025, this is around $61.96 to $65.55 per day.

Note: This amount is indexed twice a year, in March and September, so it will change slightly over time.

Part 2: The Accommodation Cost (The “Room Price”)

This is typically the largest cost and the one that varies most between facilities in Adelaide.

What is the Accommodation Cost?

This is the cost for your room, which you agree on with the provider before moving in. Each aged care facility in Adelaide sets its own accommodation prices based on room type, location, and amenities.

Adelaide-Specific Cost Range

Average accommodation prices in Adelaide typically range from $350,000 to $650,000 for a Refundable Accommodation Deposit (RAD).

You Have a Choice of How to Pay

Option A: Refundable Accommodation Deposit (RAD)

  • This is a lump-sum payment, like an interest-free loan to the provider
  • The full balance is refunded to you or your estate when you leave
  • New Rule (Post-Nov 2025): For new residents, the provider will now retain a small “retention” amount, typically 2% per year for up to 5 years, from the RAD

Option B: Daily Accommodation Payment (DAP)

  • This is a daily “rental-style” payment that is not refunded
  • The DAP is calculated from the RAD price using a government-set interest rate (the MPIR)
  • Adelaide Example: A South Australian provider shows that a $500,000 RAD is equivalent to approximately $104.25 Daily Accommodation Payment (DAP)

Option C: A Combination

  • You can pay part of the RAD (e.g., $200,000) and pay the rest as a smaller daily DAP
  • This provides flexibility to manage your cash flow
  • Many Adelaide residents choose this option to balance upfront costs with ongoing expenses

Part 3: The Means-Tested Fee (Based on Your Finances)

This fee depends entirely on your financial situation and represents your contribution toward the cost of your care.

What is the Means-Tested Fee?

This is an additional contribution towards the cost of your care (like nursing and personal care) that you may have to pay, based on your income and assets assessment.

Important System Change

This is the part that changed on November 1, 2025. The system now differs depending on when you entered care.

For Residents Who Entered Care BEFORE November 1, 2025

  • You pay the Means-Tested Care Fee
  • This fee is capped annually and over your lifetime
  • The maximum fee is currently around $300.81 per day
  • Annual caps provide protection against very high costs

For NEW Residents Entering Care AFTER November 1, 2025

The Means-Tested Care Fee is replaced by two new contributions:

  • 1. Hotelling Contribution: A means-tested contribution towards daily “hotel” services (e.g., meals, laundry, utilities)
  • 2. Non-Clinical Care Contribution: A means-tested contribution for non-clinical care (e.g., lifestyle activities, administration, support services)

Important: Just like the old fee, these are calculated by Services Australia based on your means assessment. You will be told exactly what (if anything) you need to pay.

Part 4: Extra or Additional Service Fees (Optional)

These are the only completely optional costs in aged care.

What Are Extra Service Fees?

These are optional extras you can choose to pay for premium services or amenities beyond the standard care package.

Common Examples in Adelaide Facilities:

🛁 Premium toiletries

📺 In-room Foxtel connection

📰 Newspaper delivery

🍷 Premium meal choices

💈 Salon services

🚗 Chauffeur services

Important: This is a private agreement between you and the provider. You must agree to these costs in writing, and they cannot be charged for essential care services.

What About In-Home Care Costs?

For many Adelaide seniors, in-home care provides a more affordable alternative to residential aged care.

In-Home Care Under the New “Support at Home” Program

What’s Covered by Funding

  • Clinical Care: Nursing, physiotherapy, other clinical services
  • Support at Home Program: Replaced Home Care Packages (since Nov 1, 2025)
  • Government Subsidy: Significant government contribution toward care costs

What You Pay

  • No accommodation costs (you’re in your own home)
  • No clinical care fees (covered by funding)
  • Co-contribution: A percentage for independence and daily living services
  • Basic Daily Fee: Small set fee for home care services

💰 Cost-Saving Benefit for Adelaide Seniors

In-home care is almost always a more affordable option if you do not need 24/7 medical supervision. You maintain your independence while receiving professional support, and you avoid accommodation costs entirely.

Conclusion: How to Get a Formal Estimate

While the fee structure seems complex, you will not be charged anything until you have had a formal Means Assessment from Services Australia. The process is designed to be transparent and fair.

The 3-Step Process to Know Your Exact Costs

1

Get Assessed

Apply for a My Aged Care Assessment (ACAT) to determine your care needs

2

Financial Assessment

Complete the financial means assessment form from Services Australia

3

Receive Your Letter

You will receive an official letter telling you exactly what fees you are eligible to pay

Get Clarity on Your Aged Care Costs Today

If you have been approved for a Home Care Package or the new Support at Home program, you can receive affordable, professional care without leaving your home.

Contact the Humanity Care Adelaide team today, and we can provide a clear, no-obligation quote based on your approved funding. We’ll help you understand exactly what your aged care will cost and how to make the most of your government support.

📧 Email: [email protected]
🏠 Address: 8 Lilac Place, Netley SA 5037

Frequently Asked Questions About Aged Care Costs in Adelaide

1. How do I know if I’m eligible for government assistance with aged care costs?

Most Australians are eligible for some government assistance. The exact amount depends on your income and assets assessment conducted by Services Australia. Even if you have significant assets, you may still receive some subsidy, and there are caps to protect you from extremely high costs.

2. What happens to my family home when calculating aged care fees?

Your former home is included in the assets test for the first two years (up to a cap value), unless your spouse or dependent child still lives there. After 2 years, it’s fully assessable regardless of who lives there. Many people use the equity in their home to pay accommodation costs via a RAD.

3. Can I change from DAP to RAD (or vice versa) after I move in?

Yes, you can generally change your payment method after entering care, subject to the facility’s agreement. Many facilities allow residents to switch between payment options as their financial situation changes.

4. Are there any hidden costs I should be aware of?

All mandatory costs should be clearly outlined in your resident agreement. Watch for optional extras like hairdressing, outings, or premium services that may incur additional charges. Always ask for a complete breakdown of all potential costs before signing any agreement.

5. What if I can’t afford the accommodation payment?

If you have limited assets and income, the government may pay all or part of your accommodation costs. You’ll need to be assessed as needing financial hardship assistance by Services Australia. Many Adelaide facilities also offer rooms at different price points to accommodate various budgets.

6. How often do aged care fees change?

The Basic Daily Fee is indexed twice yearly (March and September). The Means-Tested Fee caps are also adjusted regularly. Accommodation prices are set by individual facilities and may change for new residents, but your agreed price is generally fixed once you enter care.

Final Thoughts on Adelaide Aged Care Costs

Understanding aged care costs is the first step toward making an informed decision that provides both quality care and financial peace of mind. Remember that the Australian aged care system is designed to be accessible, with government subsidies ensuring that care remains affordable for most people.

The key is to get proper financial advice, complete your means assessment, and work with reputable providers who offer transparent pricing. Whether you choose residential care or prefer to age in place with in-home support, there are options available to suit every situation and budget in Adelaide.

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