Basic Daily Fee in Aged Care 2026: What You Pay

Every person living in government-subsidised residential aged care in Australia pays a basic daily fee. This fee is the minimum contribution toward the cost of your care in a residential facility.

Important (effective 20 March 2026): Home care no longer has a basic daily fee. When the Support at Home program replaced Home Care Packages on 1 November 2025, the home-care basic daily fee was abolished. Home-based care now uses service-based contributions instead. This guide focuses on the residential basic daily fee, with a section explaining how home-care contributions changed.

This guide explains exactly how much the residential basic daily fee is in 2026, how it is set, and what it covers.

Reviewed against Services Australia and myagedcare.gov.au on 2 July 2026.

What is the basic daily fee?

The basic daily fee is a standard contribution that all residential aged care residents pay. It is set by the Australian Government and adjusted twice a year (on 20 March and 20 September) in line with pension increases.

Think of it as a contribution toward your daily living costs, similar to what you would spend on meals, utilities, and household expenses if you were living independently.

Key points about the basic daily fee:

• Every residential resident pays it, regardless of income or assets
• It cannot generally be reduced or waived (unlike some other aged care fees)
• It is the same amount for everyone in residential care
• It is adjusted twice yearly in line with pension rates
• It does not apply to home care; Support at Home has no basic daily fee

Basic daily fee amount in 2026

Residential aged care basic daily fee

The residential aged care basic daily fee is set at 85% of the single basic Age Pension and is currently $66.80 per day (effective 20 March 2026).

This fee covers basic living expenses in the facility, including:

• Meals (breakfast, lunch, dinner, and snacks)
• Cleaning and laundry services
• Heating, cooling, and electricity
• General maintenance of the facility

Home care has no basic daily fee

Under the old Home Care Packages program, providers could charge a home-care basic daily fee of up to 17.5% of the single Age Pension. That fee was abolished on 1 November 2025 when Support at Home began. There is now no basic daily fee for home-based care. Instead, you contribute toward the cost of specific services (see the Support at Home section below).

How the residential basic daily fee is set

The residential basic daily fee is linked directly to the single basic Age Pension rate, at 85% of the single basic Age Pension per day. As the Age Pension increases (on 20 March and 20 September), the basic daily fee increases proportionally. The amounts are published by the Department of Health and Aged Care and take effect from the pension increase date. For the current figure, see Services Australia.

Basic daily fee for residential aged care

In residential aged care, the basic daily fee is one of several costs you may need to pay. Here is how it fits into the overall fee structure:

Full fee breakdown for residential care

The basic daily fee vs other fees

Unlike the means-tested care fee, the basic daily fee:

• Applies to everyone equally
• Cannot be reduced based on financial circumstances
• Is set by the government (not the provider)
• Is the same across all residential facilities

For more on residential aged care costs, see our guide on nursing home costs in Australia.

How home care contributions work under Support at Home

The Support at Home program launched on 1 November 2025 (originally due 1 July 2025 but deferred) and replaced Home Care Packages. Under Support at Home there is no basic daily fee. Instead:

• Clinical care (nursing and allied health) is fully government funded. You pay nothing toward it.
• Independence services (such as personal care and domestic assistance) attract a contribution of roughly 5 to 50% of the cost, depending on your means.
• Everyday living services (such as gardening, home maintenance and transport) attract a higher contribution of roughly 17.5 to 80%, depending on your means.

Full pensioners pay the lowest contribution rates; self-funded retirees pay the most. A lifetime contribution cap (around $130,000, indexed) limits your total out-of-pocket costs. Existing Home Care Package recipients are covered by a “no worse off” principle.

If you are unsure how the transition affects your contributions, contact My Aged Care on 1800 200 422 or speak with your provider directly.

For more details on Support at Home pricing, see our Support at Home prices guide.

How to reduce your overall aged care costs

While the basic daily fee cannot be reduced, you can take steps to minimise your total aged care costs:

1. Get a proper financial assessment: Ensures you are not overpaying on means-tested fees
2. Compare providers: Fee structures vary, especially for home care (compare providers through Carevo)
3. Understand your RAD options: In residential care, choosing DAP over RAD (or a combination) can affect your pension eligibility
4. Claim the Pension Supplement: If you receive the Age Pension, you may be entitled to the Pension Supplement
5. Use our aged care fees calculator: Estimate your total costs before committing

March 2026: Ministerial Investigation Into Premium Service Fees

On 16 March 2026, the Aged Care Minister announced an investigation into claims that some aged care providers are charging premium fees for basic services that should be covered under standard care arrangements, including the basic daily fee. The Minister specifically named Opal Healthcare as one provider under scrutiny, calling the practice “disgusting sidestepping” of aged care regulations.

The basic daily fee should cover standard living expenses such as meals, laundry, and facility maintenance. If providers are charging separately for these core services on top of the basic daily fee, this may constitute inappropriate fee charging. Families should carefully review itemized bills to ensure they are not being double-charged for services already covered by the basic daily fee.

If you believe you are being charged inappropriately for basic services, lodge a complaint with the Aged Care Quality and Safety Commission on 1800 951 822. The Minister emphasized that while regulations provide absolute minimum standards, Australians expect and deserve dignity in aged care, not exploitative pricing practices.

Source: ABC News, 16 March 2026

Frequently asked questions

Is the basic daily fee tax-deductible?

No. The basic daily fee is not tax-deductible for individual taxpayers. It is considered a personal living expense, similar to food and accommodation costs you would pay regardless of your care situation.

Do couples pay two basic daily fees?

If both members of a couple are in residential aged care, each person pays their own basic daily fee. The means testing for other residential fees considers your combined income and assets. For home care under Support at Home there is no basic daily fee for either partner.

What happens if I do not pay the basic daily fee?

If you do not pay your residential basic daily fee, the facility cannot discharge you for non-payment, but the debt accumulates and may be recovered from your estate. If you are struggling to pay, contact Services Australia or speak with your provider about a payment plan before the situation escalates.

Does the basic daily fee change when the pension increases?

Yes. The residential basic daily fee is directly linked to the single basic Age Pension rate and changes whenever the pension is adjusted (on 20 March and 20 September each year).

Getting help with aged care fees

Understanding aged care fees can be confusing. Here are resources that can help:

• My Aged Care: 1800 200 422 or myagedcare.gov.au
• Services Australia: For income and assets assessments
• Financial Information Service: Free financial guidance from Services Australia (call 132 300)
• Carevo: Connect with providers who can explain fee structures - call 1800 953 253

Find aged care providers in your region through our aged care directory. We cover Western Sydney, Inner Melbourne, Brisbane North, Adelaide, Perth, and 21 more regions across Australia.