“How much does aged care cost?” is one of the first questions families ask — and one of the hardest to get a straight answer to. The truth is, there’s no single price tag. What you pay depends on the type of care, your income and assets, and government subsidies. This guide breaks down aged care costs in Adelaide in plain English, so you can understand the pieces and work out your likely contribution.
- Aged care is heavily subsidised — the government pays most of the cost; you contribute based on your means.
- Costs are means-tested — your income and assets determine what you pay.
- In-home and residential care are costed differently — residential adds accommodation costs.
- Caps protect you — annual and lifetime limits cap how much you can be asked to contribute.
The one thing to understand first
Before the detail, here’s the key idea: the government funds the majority of aged care. You’re not paying the full market cost — you’re making a contribution based on what you can afford. The means test exists precisely so that people pay according to their capacity, not the full price of care. For many families, the actual out-of-pocket cost is lower than they feared.
Because costs depend so heavily on your individual means, the single most useful thing you can do is use the fee estimator on the My Aged Care website and get a means assessment through Services Australia. That gives you real numbers for your situation — far more reliable than any general figure.
In-home care costs (Support at Home)
In-home aged care is now delivered through the Support at Home program. Your costs depend on your assessed funding level and the type of service you receive, with contributions worked out by a means assessment. In broad terms:
Clinical care
Services like nursing and allied health are fully government-funded — you pay nothing towards them.
Independence support
Help with things like personal care and mobility — you contribute a portion, based on your means.
Everyday living
Services like cleaning, meals and gardening — you contribute a larger portion, based on your means.
No accommodation cost
Because you stay in your own home, there’s no accommodation payment — a key reason in-home care is often cheaper.
Full pensioners generally contribute far less than self-funded retirees. For many people receiving in-home care, out-of-pocket contributions are modest relative to the value of services received.
Residential aged care costs
Residential aged care has more moving parts, because it includes your accommodation as well as your care. The main components are:
| Cost | What it is |
|---|---|
| Basic daily fee | A standard daily contribution towards living costs (meals, cleaning, laundry). Set as a percentage of the Age Pension. |
| Accommodation payment | Payment for your room — as a refundable lump sum (RAD), a daily payment (DAP), or a combination. |
| Means-tested contributions | Additional care contributions based on your income and assets. Not everyone pays these. |
| Extra/higher services | Optional fees for premium services or amenities, if you choose them. |
The basic daily fee is paid by everyone in residential care and is tied to the single Age Pension (so it increases when the pension does). The accommodation payment is the big variable — it depends on the home and your means, and for people with lower means, the government covers it partly or fully.
For your accommodation, you can usually choose to pay a lump sum (a Refundable Accommodation Deposit, which is refunded when you leave), a daily payment (a Daily Accommodation Payment, calculated using a government interest rate), or a mix of both. Each option has different financial implications — which is exactly why independent financial advice is so valuable here.
How the means test works
Both in-home and residential care are means-tested. Services Australia assesses your income and assets to work out how much you contribute. The key points:
- Full pensioners with limited assets pay the least — often just the basic contributions, with accommodation covered.
- Self-funded retirees pay more, up to the full assessed contribution.
- The family home may be exempt or capped in the assessment, depending on your circumstances (for example, if a protected person still lives there).
- Without a means assessment, you may be charged maximum rates — so completing it is almost always in your interest.
There are annual and lifetime caps on certain care contributions. Once you reach the cap, you stop paying that contribution. Fees paid for in-home care also count towards the lifetime cap. These protections mean your contributions can’t rise indefinitely — there’s a ceiling.
Confused about aged care costs?
Our Adelaide team can help you understand your aged care options and how costs work — and point you to the right tools and advice for your situation. No pressure, just clarity.
Ways to manage aged care costs
A few practical steps can help you avoid overpaying and plan well:
Get a means assessment
It ensures you’re not charged maximum rates unnecessarily — almost always worth doing.
Use the fee estimator
The My Aged Care estimator gives you a personalised picture before you commit.
Get financial advice
Independent advice on RAD vs DAP and pension impacts can save significant money.
Ask about hardship help
If you genuinely can’t afford your assessed contributions, financial hardship assistance may be available.
Humanity Care is an aged care specialist in Adelaide. While we can’t give financial advice, we can help you understand your care options, what to expect, and how to access the right support — so cost never becomes a barrier to getting the care you need.
Frequently asked questions about aged care costs
How much does aged care cost in Adelaide?
There’s no single figure — it depends on the type of care and your means. Aged care is heavily government-subsidised, and you contribute based on your income and assets. In-home care is generally cheaper (no accommodation cost), while residential care adds an accommodation payment. The My Aged Care fee estimator gives you a personalised figure.
Is in-home care cheaper than residential care?
Usually, yes, for similar needs — because in-home care has no accommodation cost (you stay in your own home). Residential care adds a room payment on top of daily fees. Both are means-tested, so your actual costs depend on your income and assets.
What is the basic daily fee?
The basic daily fee is a standard daily contribution paid by everyone in residential aged care, covering living costs like meals, cleaning and laundry. It’s set as a percentage of the single Age Pension, so it rises when the pension is indexed (in March and September each year).
What’s the difference between a RAD and a DAP?
Both cover your accommodation in residential care. A RAD (Refundable Accommodation Deposit) is a lump sum, refunded when you leave. A DAP (Daily Accommodation Payment) is a daily amount instead, calculated using a government interest rate. You can also pay a combination. Each has different financial effects, so advice is worthwhile.
Will I have to sell my home to pay for aged care?
Not necessarily. The family home may be exempt or capped in the means assessment depending on your circumstances — for example, if a protected person still lives there. There are also options like paying accommodation as a daily payment rather than a lump sum. Independent financial advice can help you weigh up the best approach.
What if I can’t afford aged care?
Aged care is designed so everyone can access care regardless of finances. Full pensioners pay far less, accommodation costs can be government-covered for those with lower means, and financial hardship assistance is available if you genuinely can’t afford your assessed contributions. Cost shouldn’t be a barrier to getting care.
Clarity beats guesswork
Aged care costs feel daunting, but they’re more manageable — and more subsidised — than most families expect. The best approach is to understand the pieces, get a means assessment for real numbers, and seek financial advice for the bigger decisions. With clarity, cost becomes something you can plan for, not fear.
If you’d like help understanding aged care in Adelaide, our friendly local team is here for a no-obligation chat.
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