The cost of care in a residential aged care home depends on several factors, including your income and assets and the home you choose.
There are up to six main types of residential aged care fees you may be asked to pay:
Each aged care home sets accommodation prices and optional services, but the Australian government regulates care fees and means testing. The exact amount you’ll pay depends on your income, assets, location and the aged care home you choose.
Aged care accommodation costs are determined by a means assessment conducted by Services Australia. The exact costs will depend on your income and assets, and the specific room you choose, which can be government-subsidised or self-funded.
For those needing to pay for their accommodation, the following options are available:
RAD (Refundable Accommodation Deposit)
A one-off lump sum payment, which is partially or fully refunded when you leave aged care.
From 1 November 2025, those who enter permanent residential aged care and are paying a RAD will have retention applied to the lump sum payment.The (non-refundable) retention rate is set at 2% per annum for up to 5 years, with a maximum retention of 10%.
DAP (Daily Accommodation Payment)
A non-refundable daily payment that a resident may pay to cover their accommodation costs in place of a lump sum payment.
DAP is calculated using the Maximum Permissible Interest Rate (MPIR), which the government sets.For consumers entering residential aged care after 1 November 2025 and choosing to pay by DAP, the DAP amounts will be indexed, meaning they may increase over time in line with government-set rates.
Combination payment
You can choose to pay part of the room cost upfront as a RAD, the rest of the cost is paid as a DAP.
At MACG, our residential aged care homes offer competitive accommodation pricing. The rooms across our homes range from $350,000 to $800,000. Please refer to each individual home's information for specific pricing details.
The government may subsidise your accommodation costs depending on your income and asset assessment. You’ll never be excluded from care due to financial hardship.
Daily care fees help cover the cost of essential services you receive while living in a residential aged care home. This includes meals, cleaning, laundry, utilities, and everyday support.
All aged care residents pay a Basic Daily Fee, regardless of their income or assets. The Australian Government sets this fee and reviews it twice a year. As of January 2025, it’s set at $65.55 per day, which is 85% of the full single Age Pension.
Depending on your individual means test, there are a number of fees that you may be asked to pay in addition to the Basic Daily Fee and any accommodation costs.
The types of means-tested fees in residential aged care are:
There are protections to limit how much you could pay if you have to pay any of the means-tested fees. Daily, annual, and lifetime caps may apply to these fees.
The Higher Everyday Living Fee, or HELF, is a new optional fee introduced from 1 November 2025 for people entering residential aged care. It replaces the previous “Extra Service Fee” and “Additional Service Fee” arrangements.
HELF gives you the option to pay for upgraded everyday-living services. For example, you might choose premium dining, more varied meal choices, extra wellbeing or recreational activities, enhanced amenities, or other comfort features and extras.
These services are not subsidised by the Australian Government and are charged directly by the aged care provider. Some homes offer bundled packages, while others (like MACG) allow you to select services individually based on your preferences.
At MACG, you’ll always receive high-quality personal and clinical care. Additional services enhance your comfort, not replace core care.
Use the calaulator below to review our locations and room options.
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Whether you're planning ahead or need answers quickly, our calculator gives you a personalised overview to help you confidently choose the right aged care home.
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The Income and Asset Assessment is a means test set by the Australian Government to decide if you are eligible for a Commonwealth subsidy for part or all of your aged care home fees.
In this means test, your income and assets are evaluated. What is considered ‘income’ includes but is not limited to financial investments, age, disability or service pensions, income support payments, bonds, shares, your superannuation, family trusts and super funds.
Assets include properties you own (including your own home), investment properties, private or partnered businesses, and more. You will be asked a range of questions regarding your income and assets to determine your eligibility for subsidies.
Getting your income and assets assessment doesn’t have to be complicated. To start, gather financial and asset documents (bank accounts, savings, investments, property info, superannuation, pensions, etc.). Then you can fill out the relevant form from Services Australia, either online or on paper. You can apply online by logging into your myGov account (via Centrelink) and selecting “Apply for Aged Care calculation of your cost of care.”
If you prefer not to apply online you can still complete a paper form (for example, form SA457, SA456 or SA485) and either mail it, drop it in at a Services Australia office, or request help over the phone.
The online assessment should not take longer than 20 minutes of your time. However, after submitting the assessment, you will receive a call to arrange a complete evaluation and review of your application.
There are three different ways you can pay your aged care fees:
MACG’s preferred method of payment is via direct debit. Therefore, a direct debit form will be provided to you during the pre-admissions meeting.
At the beginning of the month, monthly statements detailing the debit amount are issued to permanent residents (or their representatives). This direct debit is processed on the 15th of every month (bar public holidays or weekends, in which the payment will be taken the following business day).
If you have any questions about the admissions process, the cost of care or would like to book a tour, please contact our Admissions Team.
In Australia, aged care is funded through a mix of government subsidies and personal contributions. How much you or your loved one will need to pay depends on your income and asset assessment, the type of care you need, and the aged care home you choose.
If you can afford to contribute more, you may be asked to cover a greater share of your aged care costs. If not, the Australian Government may subsidise part or all of your care fees — including accommodation and clinical support with Financial Hardship Assistance.
No one is turned away from aged care due to financial hardship. If your financial situation is limited, systems are in place to ensure you can still access the care you need.
Our team is always here to talk through your options — with honesty, transparency, and no pressure.
Getting professional advice can make a big difference when planning for aged care. It’s not just about the cost — it’s about making confident, informed decisions that protect your loved one’s well-being and your family’s financial future.
A qualified aged care financial advisor can help you:
Financial advice is especially helpful if you’re unsure what you may pay — or if multiple family members are contributing to the decision.
Choosing an aged care home is never just about cost — it’s about trust, compassion, and feeling truly supported throughout the journey.
At MACG, we’re proud to be one of Melbourne's last family-owned aged care providers. Our team is deeply connected to every home, and our CEO is often on-site, building face-to-face relationships with residents and families.
Here’s why so many families choose us:
Personalised support from day one — no call centres, just real people ready to help.
Transparent pricing — no hidden costs or upselling.
Heart-centred communities — our homes feel like home, not hospitals.
Experienced care teams — many staff have been with us for over a decade.
A commitment to dignity, wellbeing and genuine connection.
“MACG made everything feel personal — Mum was treated with care and respect, and we never felt rushed or confused.”
– Sandra R., Richmond VIC
Yes — aged care accommodation costs in Melbourne are often higher than in regional areas. This is mainly due to differences in property prices, demand, and overall living costs in metropolitan suburbs.
For example, aged care homes in locations like Camberwell, South Yarra, or Ashwood may have higher RADs or DAPs compared to homes in outer Melbourne or regional Victoria.
However, it’s important to know:
Costs vary depending on your financial situation and the aged care home you choose. The Basic Daily Fee is currently $63.82 per day, and RADs (Refundable Accommodation Deposits) in Melbourne typically range from $350,000 to $750,000 or more. You may also be asked to pay a means-tested care fee and optional extras.
No — the Higher Everyday Living Fee is a separate, additional fee replacing the additional and extra services fees. All residents will still be required to pay the Basic Daily Fee.
Yes. While aged care providers set their own accommodation costs, many (including MACG) offer flexibility. You may choose to pay a lump sum (RAD), a daily fee (DAP), or a combination of both. Aged care financial advisors can also help structure a payment option that suits your needs.
Yes. From 1 November 2025, RADs may be subject to a government-set retention fee, which reduces the refundable amount. DAPs will also become indexed, meaning the daily amount may increase over time based on regulatory updates.
If you cannot afford residential aged care costs, there are a number of avenues you can explore for assistance. If your Income and Asset Assessment determines you can’t afford aged care services, the Australian Government can provide subsidies for aged care support.
You may be eligible for Financial Hardship Assistance to partially or fully cover the basic daily fee, means-tested fees and accommodation costs. Each case is assessed individually and depends on the type of care you need.
You can also consult with a Financial Information Services (FIS) representative. The FIS is an entirely free Australian Government program that helps you make informed decisions about your finances.
Please contact any of the departments below if you require assistance or more information.
If you have any questions about us or our residential aged care homes, we would love to help.
