Extra Services in Aged Care: Costs & Value (2026)
Andre Smith
Co-founder & CEO
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Key Points
- Extra services in aged care are optional premium upgrades covering hotel-style amenities, not clinical care
- Costs typically range from $20 to $80 per day ($7,300 to $29,200 per year) on top of standard fees
- From 1 November 2025, extra service fees are being replaced by the new Higher Everyday Living Fee (HELF)
- Existing extra service agreements can continue until 31 October 2026
- You cannot be charged for extra services you are physically unable to use
- Always compare the specific inclusions between facilities before committing
What Are Extra Services?
When someone moves into residential aged care, they receive a standard level of care that includes meals, personal care, clinical support, and basic social activities. This care is partly funded by the Australian Government and partly by the resident through the Basic Daily Fee and any applicable Means-Tested Care Fee.
Extra services sit on top of this standard care. They are premium, hotel-style upgrades that some residential aged care facilities offer for an additional daily fee. Think of them as the difference between a standard hotel room and a premium suite. The care you receive stays the same, but the everyday living experience is enhanced.
It is important to understand that extra services do not include any health care or clinical services. Facilities are already required to provide all necessary care under their government funding. Extra services cover things like better food, nicer furnishings, more outings, and additional lifestyle amenities.
Not all facilities offer extra services. Those that do must have approval from the Independent Health and Aged Care Pricing Authority (IHACPA) to charge extra service fees, and the fees must be clearly documented before you agree to pay them.
Source: Department of Health - Higher Everyday Living, Additional and Extra Service Fees
Typical Costs
Extra service fees vary significantly between facilities. The cost depends on what is included, the location, and the standard of the facility. Here is a general breakdown of what to expect.
| Fee Level | Daily Cost | Annual Cost | Typical Inclusions |
|---|---|---|---|
| Basic extras | $10 - $25/day | $3,650 - $9,125/year | Enhanced meals, newspapers, basic Pay TV |
| Mid-range extras | $25 - $50/day | $9,125 - $18,250/year | Premium meals, more activities, better furnishings, personal laundry |
| Premium extras | $50 - $80/day | $18,250 - $29,200/year | Restaurant-quality dining with wine, luxury furnishings, extensive outings, streaming services |
| High-end extras | $80 - $120+/day | $29,200 - $43,800+/year | Full premium lifestyle package, concierge-style services, top-tier amenities |
These fees are charged on top of your other aged care costs, including the Basic Daily Fee (currently $66.80 per day), any Means-Tested Care Fee, and your accommodation payment.
To understand how extra services fit into your total cost picture, use our aged care fees calculator to estimate your base fees first. Once you know your base costs, you can assess whether extra services fit within your budget.
Source: My Aged Care - Aged Care Home Costs and Fees
Standard vs Extra Services
One of the most common questions families ask is: what exactly do I get for the extra money? Here is a detailed comparison.
| Service Area | Standard (Included in Base Fees) | Extra Services (Additional Fee) |
|---|---|---|
| Meals | Three nutritious meals per day, snacks | Restaurant-quality meals, expanded menu choices, wine with dinner, barista coffee |
| Room | Clean, functional room with basic furnishings | Larger room, premium furnishings, better views, upgraded linen and bedding |
| Activities | Basic social activities and group programs | More frequent outings, cultural events, concerts, personalised activity programs |
| Laundry | Basic laundry service (communal wash) | Personal laundry service for delicate items, dry cleaning |
| Entertainment | Shared TV in common areas | In-room Pay TV or streaming services, daily newspapers and magazines |
| Personal care items | Basic toiletries | Premium toiletries, enhanced bathroom amenities |
| Grooming | Basic assistance with grooming | Regular hairdressing, beauty services, podiatry visits |
| Technology | Basic access | In-room Wi-Fi, tablet access, video calling setup |
The key distinction is that standard care covers everything a resident needs. Extra services cover what a resident wants for a more comfortable, enjoyable experience. No facility can withhold necessary care because a resident has not paid for extra services.
The 2025 Reform: Higher Everyday Living Fee
From 1 November 2025, the Australian Government introduced significant changes to how extra services work in residential aged care under the new Aged Care Act. The previous system of “extra service fees” and “additional service fees” is being replaced by a single new fee called the Higher Everyday Living Fee (HELF).
What Changed
Under the old system, facilities needed IHACPA approval for a fixed extra service fee that covered a bundled package of premium services. Under the new HELF system, residents can pick and choose individual services rather than paying for a full package.
Key Features of the HELF
- Itemised services. Instead of one bundled fee, providers must list each service and its cost separately. This gives residents more transparency and control over what they pay for.
- Written agreement required. A HELF agreement must outline the cost of each service, the standard and frequency of delivery, and how it will be charged.
- 28-day cooling off period. After signing a standing HELF agreement, residents have 28 days to cancel or vary the services without paying a cancellation fee.
- Cannot be a condition of entry. No provider can make paying a HELF a requirement for admission to their facility.
Transition Period
If you entered into an extra service or additional service agreement before 1 November 2025, your existing arrangement can continue until 31 October 2026. After that date, all facilities must transition to the HELF system.
If you are entering a facility now (in 2026), the HELF system applies to you. This is generally better for residents because it allows more flexibility and clearer pricing.
Source: Department of Health - Higher Everyday Living Fee Fact Sheet
How to Compare Facilities
When comparing extra services between aged care facilities, a structured approach will save you time and prevent surprises later. Here is what to focus on.
1. Get a Written List of Inclusions
Ask each facility for a complete, itemised list of what their extra services (or HELF) includes. Under the new system, providers must be transparent about what each service costs. Do not rely on verbal descriptions or glossy brochures alone.
2. Compare Like for Like
Facilities package their extras differently. One facility’s “$40 per day” package might include premium meals and Pay TV. Another’s “$40 per day” might include premium meals, activities, and personal laundry but not Pay TV. The only way to compare accurately is to list every inclusion side by side.
3. Visit During Meal Times
Meals are often the biggest component of extra services. Visit during lunch or dinner if possible. Taste the food. Look at the menu choices. Ask current residents what they think. The difference between standard and extra service meals varies enormously between facilities.
4. Speak to Current Residents
If the facility allows it, ask current residents or their families whether the extra services feel worth the cost. Their firsthand experience is more valuable than any marketing material.
5. Check for Fee Increases
Ask how often fees are reviewed and how much notice you will receive before any increase. Some facilities review annually, while others may adjust more frequently. Get this information in writing as part of your agreement.
6. Understand the Cancellation Terms
Under the HELF system, you have a 28-day cooling off period. But also ask about ongoing cancellation terms. Can you drop specific services later if your needs or budget change? What notice is required?
Questions to Ask Providers
Before committing to extra services at any facility, ask these specific questions. Write down the answers and compare them across every facility you are considering.
About the services:
- What specific services are included in the extra fee?
- Can I see a full, itemised price list for each service?
- What is the total daily and annual cost?
- Can I choose individual services, or must I take the full package?
- How do meals differ between standard and extra service residents?
- Are activities and outings the same, or do extra service residents get additional options?
About the terms:
- How often are fees reviewed and increased?
- What notice will I receive before a fee increase?
- Can I cancel or downgrade services later?
- What is the cooling off period?
- Is there a cancellation fee if I want to stop extra services?
About availability:
- Do you have both standard and extra service rooms available?
- Is there a waitlist for standard rooms if I decide against extras?
- If I start with standard, can I upgrade to extras later?
- Are some rooms only available as extra service rooms?
About protections:
- Will I receive the same quality of clinical care regardless of whether I pay for extras?
- What happens if I can no longer afford the extra services?
- Can I be moved to a different room if I stop paying for extras?
If a facility cannot clearly answer these questions, or pressures you into signing up for extras before you are ready, consider that a red flag. Transparent providers will welcome detailed questions.
Are They Worth It?
This is the question every family wants answered, and the honest answer is: it depends on the individual.
When Extra Services Are Worth It
The resident values quality food. For many older Australians, meals are the highlight of the day. If the resident has always enjoyed good food, the upgrade from basic institutional meals to restaurant-quality dining can genuinely improve daily happiness. This is often the single biggest factor families cite when choosing extras.
The resident is socially active. If the resident enjoys outings, concerts, cultural events, and varied activities, extra services can provide a richer social life. Standard activity programs tend to be more limited in scope and frequency.
The family can comfortably afford it. Extra services should not put financial strain on the resident or their family. If the cost means worrying about money or cutting into funds needed for other purposes, the stress may outweigh the benefits.
The resident has specific preferences. Some residents care about having a well-furnished room, personal laundry for delicate clothing, or daily newspapers. If these things matter to the individual, extras can maintain a sense of normality and personal standards.
When Extra Services May Not Be Worth It
The resident has advanced cognitive decline. If the resident has significant dementia and is unlikely to notice or appreciate the difference in furnishings, menu quality, or entertainment options, the additional cost may not provide meaningful benefit. This is a deeply personal decision, but it is worth considering honestly.
The standard care is already high quality. Some facilities offer an excellent standard of care with good meals, engaging activities, and pleasant rooms. In these cases, the gap between standard and extra is small, and the additional cost may not be justified.
The resident’s stay may be short. If the resident is entering care for respite or has a prognosis that suggests a shorter stay, the long-term cost of extras may not align with the expected benefit.
Budget is tight. If paying for extras means the resident or family will face financial stress, it is not worth it. The quality of clinical care is the same regardless, and a stress-free financial situation contributes more to wellbeing than premium meals or Pay TV.
A Practical Framework
Ask yourself these three questions:
- Will the resident notice and appreciate the difference? If yes, extras add real value.
- Can we afford it without financial stress? If yes, it is a quality-of-life investment.
- Is the gap between standard and extra significant at this facility? Visit and compare. Sometimes the gap is minimal.
If you answered yes to all three, extra services are likely worth it. If you answered no to any of them, standard care may be the better choice.
For a complete breakdown of all residential aged care costs, read our guide on how much a nursing home costs in Australia.
Tax and Financial Considerations
Are Extra Services Tax Deductible?
Aged care fees, including extra service fees, are generally not tax deductible for the resident. The Basic Daily Fee, Means-Tested Care Fee, and accommodation payments are personal living expenses, and the ATO does not allow deductions for these.
The medical expenses tax offset, which previously allowed some aged care costs to be claimed, has been largely phased out. It is now only available in very limited circumstances for disability aids, attendant care, and specific aged care expenses that were already being claimed before the offset was restricted.
If a family member is paying aged care fees on behalf of a resident, those payments are also generally not deductible for the family member.
However, the financial structure of aged care is complex, and individual circumstances vary. It is worth consulting a financial adviser who specialises in aged care, particularly regarding:
- How extra services interact with your Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)
- Whether paying extra services affects your Age Pension entitlements
- Estate planning implications of ongoing extra service fees
Source: ATO and CBCS - Are Aged Care Fees Tax Deductible?
How Extra Services Affect Other Fees
Extra service fees are separate from and do not affect the calculation of your other aged care fees. Specifically:
- Basic Daily Fee: Unchanged. This is set by the government and applies to everyone.
- Means-Tested Care Fee: Unchanged. This is calculated based on your income and assets assessment, not on whether you choose extras.
- Accommodation Payment (RAD/DAP): Unchanged. Your accommodation cost is determined by the facility’s published price and your means test result.
- Age Pension: Extra service payments are not counted as income and do not affect your pension entitlement.
In short, choosing extra services is a separate financial decision that sits on top of your assessed fees. It does not change what the government calculates you should pay for care and accommodation.
Tips for Families
Choosing whether to pay for extra services can feel overwhelming, especially when you are already navigating the emotional process of moving a loved one into residential care. Here are practical tips to help.
Before Choosing a Facility
Start with the care, not the extras. The quality of clinical care, staff ratios, and the facility’s compliance record should be your top priorities. Extra services are a bonus, not a substitute for good care. Check the facility’s performance on the Aged Care Quality and Safety Commission website before considering extras.
Create a budget. Map out the resident’s full financial picture, including all aged care fees, extra services, personal spending money, and any ongoing expenses like insurance or property costs. Make sure extras fit within a sustainable budget, not just for the first year but for the long term.
Visit multiple facilities. Do not commit to extras at the first facility you visit. Compare at least three facilities, and visit each one more than once if possible. What looks impressive on a tour may feel different on a regular Tuesday afternoon.
During the Decision
Involve the resident. If the person moving into care is able to participate in the decision, ask them what matters most. Some people care deeply about food quality. Others would prefer a larger room. Some do not care about any extras and would rather keep costs low. Their preferences should guide the choice.
Read the agreement carefully. Before signing any extra service or HELF agreement, read every line. Understand exactly what you are paying for, how much it costs, when fees can increase, and how you can cancel. If anything is unclear, ask for clarification in writing.
Use the cooling off period. Under the HELF system, you have 28 days to cancel or change your services. Use this time to assess whether the extras genuinely improve the resident’s day-to-day experience.
After Moving In
Review regularly. Check in every few months to assess whether the extra services are still providing value. The resident’s needs and preferences may change over time. Services that felt essential at the start may become less important later, or new services may become more relevant.
Know your rights. A facility cannot reduce the quality of clinical care because a resident stops paying for extras. If you feel that care quality has changed after cancelling extra services, raise it with the facility management first, and then with the Aged Care Quality and Safety Commission if needed.
Keep records. Maintain a file of all agreements, fee schedules, receipts, and correspondence. If a dispute arises about what was agreed or what was charged, having clear documentation makes resolution much easier.
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. The Minister specifically named Opal Healthcare as one provider under scrutiny, calling the practice “disgusting sidestepping” of aged care regulations.
This investigation is particularly relevant to extra services and the new Higher Everyday Living Fee (HELF) system. Families should be vigilant about ensuring that providers are not reclassifying basic care activities as premium services to justify additional charges. The regulations provide absolute minimum standards, but the Minister emphasized that Australians expect and deserve dignity in aged care, not exploitative pricing practices.
If you believe you are being charged for services that should be included in standard care, lodge a complaint with the Aged Care Quality and Safety Commission on 1800 951 822. When reviewing extra service agreements, ask providers to clearly explain which services are genuinely optional premium upgrades and which are part of standard care obligations.
Source: ABC News, 16 March 2026
Frequently Asked Questions
What are extra services?
Extra services are optional premium upgrades offered by some residential aged care facilities. They cover hotel-style amenities such as higher quality meals, better furnishings, more activities, and enhanced lifestyle services. They do not include clinical care, which all residents receive regardless of whether they pay for extras.
Are extra services compulsory?
No. Extra services are entirely optional. A facility cannot make payment of extra services a condition of entry. However, some facilities only have extra service rooms available, so it is important to ask about standard room availability when comparing facilities.
Can I be charged for services I cannot use?
No. Providers are not allowed to charge you for extra services you cannot reasonably use. For example, if you have significant vision loss, you cannot be charged for newspapers or Pay TV. If you believe you are being charged for services you cannot access, raise this with the provider and, if necessary, with the Aged Care Quality and Safety Commission.
What happens to my extras if I go to hospital?
This depends on your agreement with the facility. Most facilities continue to hold your room and may continue charging extra service fees during a hospital stay. Check your agreement for specific terms about absences, and ask about fee reductions during extended periods away from the facility.
Can I upgrade or downgrade later?
Under the new HELF system, you can generally adjust your services over time. You can add new services or cancel existing ones, subject to the terms in your agreement. If you are on an older extra service arrangement, check your specific agreement for flexibility around changes.
What if I run out of money?
If you can no longer afford extra services, you can cancel them and move to standard services. Your clinical care will not change. If you are concerned about affording your base aged care fees, speak to Services Australia about a reassessment of your means-tested fees. There are hardship provisions in the aged care system to ensure no one is denied necessary care due to financial difficulty.
How is the HELF different from old extra services?
The Higher Everyday Living Fee (HELF), introduced from 1 November 2025, replaces the old extra service and additional service fee system. The main differences are: services are itemised individually rather than bundled, there is a mandatory 28-day cooling off period, and agreements must clearly outline costs and service standards. The HELF system gives residents more control and transparency.
Do extra services affect my aged care means test?
No. Extra service payments are not included in the means test calculation. They do not affect your Basic Daily Fee, Means-Tested Care Fee, accommodation costs, or Age Pension entitlement. Extra services are a completely separate expense.
Key Resources
- My Aged Care - Aged Care Home Costs and Fees
- Department of Health - Higher Everyday Living, Additional and Extra Service Fees
- IHACPA - About Extra Service Fee Approvals
- Aged Care Quality and Safety Commission
Find the Right Aged Care Provider
Choosing the right residential aged care facility is one of the most important decisions your family will make. Whether you are considering extra services or looking for the best standard care, comparing providers is essential.
Carevo connects families with trusted aged care providers across Australia. We can help you compare facilities, understand fees, and find the right fit for your loved one’s needs and budget.
Call 1800 953 253 to find trusted aged care providers through Carevo, or visit our aged care services page to browse options in your area.
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