Deciding to move into a residential care home is a significant step for you or your loved one.

At Doutta Galla, we want to ensure this transition is as smooth and transparent as possible. One of the key considerations when entering one of our homes is understanding the costs involved, which vary depending on your financial situation and the type of care you need. 
 
From 1 November 2025, new fee arrangements under the new Aged Care Act (2024) will apply to people entering residential aged care for the first time. Here’s a guide to help you understand the financial aspects of entering residential aged care at Doutta Galla. 

Government Subsidies and Personal Contributions

The Australian Government provides subsidies to aged care home providers to make residential aged care affordable. However, if you’re able to, the Government will expect you to contribute to the cost of your care and accommodation. The amount you need to pay depends on your income and assets, which will be assessed by Services Australia or the Commonwealth Department of Veterans’ Affairs (DVA).

It is advisable to have your means assessed before you enter care to see if you are eligible for Commonwealth Government assistance with fees and accommodation charges. Your means assessment is valid for 120 days, unless your circumstances change.

Means Assessment 
If your financial assessment shows that your income and assets are above a certain threshold, you may be asked to contribute towards your care. This fee is calculated based on your financial situation

Contributions for Everyday Living Costs 

1. Basic Daily Fee: This fee covers your day-to-day living costs, such as meals, laundry, and power. It is set at a maximum of 85% of the single basic age pension. Every resident pays this fee, and for some, it is the only fee they incur. In March and September each year, this fee increases in line with the age pension. 

2. Hotelling Contribution: People who can afford to will pay a higher daily fee (called a hotelling contribution) towards their living costs. Services Australia determines whether a person must pay this contribution, and if so, how much, based on their means assessment. The maximum amount is updated twice a year in March and September to reflect consumer price indexation changes. 

Contributions to Non-Clinical Care (NCCC) 
Those assessed as paying the maximum hotelling contribution may also be required to pay a non-clinical care contribution, which helps cover personal care services such as bathing and mobility support. Services Australia determines eligibility and the amount payable based on a means assessment. The maximum amount is indexed in March and September, with daily and lifetime caps applying. 

Lifetime Caps 
A lifetime cap will mean residents will no longer have to pay the NCCC once they reach $130,000 (indexed) in total contributions, or after 4 years, whichever comes first. Additionally, the daily cap of $101.16 (indexed) that applies to the NCCC. Fees paid under the Support at Home Program also count towards the lifetime cap. 

Higher Everyday Living Fee (not currently charged at Doutta Galla) 
An optional fee applies to those residents who choose to receive higher-quality or additional everyday living services beyond what an aged care home is required to provide. The specific services and associated fees are agreed upon between the resident and the provider after entering care. You cannot be charged for services you are unable to use.  Once a written agreement is made, residents have 28 days to withdraw if they change their mind. The agreement is reviewed at least annually to confirm that the services remain suitable and desired. 

Accommodation Costs 
Depending on the outcome of your financial assessment, you may be required to contribute towards your accommodation costs. This can range from the Commonwealth Government covering all expenses – to you paying the full cost of your room. Before entering care, you must agree on a room price and sign an accommodation agreement.   

Payment options include a lump sum refundable deposit, daily rental-style payments, or a combination of both. For residents entering permanent aged care on or after 1 November 2025, new accommodation arrangements will apply: 

• Refundable deposit retention: If you pay a lump sum, Doutta Galla will retain 2% of the amount per year, which is not refunded when you leave care. Retentions stop after five years. 

• Daily accommodation payment (DAP) indexing: If you pay by DAP, the amount will increase with indexation on 20 March and 20 September each year. Indexation does not apply to daily accommodation contributions (DAC) for residents receiving government assistance. 

Financial Hardship Assistance 
If you’re experiencing financial hardship, there are provisions to help reduce the burden of care and accommodation fees. You may be eligible for government financial assistance; contact Services Australia for more information. 

Payment Options 
You have a choice in how you pay for your accommodation at Doutta Galla: 

• Lump-Sum Refundable Deposit: A one-off lump sum, refunded when you leave the home. 

• Daily Payments: A rental-style payment made daily, as an alternative to a lump sum. 

• Combination of Both: You can choose a mix of both options, allowing you to make a partial lump sum payment with the remainder covered by daily payments.  

Changes to Fees After Entering Care 
Aged care fees and contributions may change over time due to:  

• changes to your financial circumstances 

• indexation of aged care fees; and 

• thresholds reaching lifetime caps on certain fees. 

You must update Services Australia or DVA within 28 days if your financial circumstances change to ensure your fees remain accurate. 

Seeking Financial Advice 
It’s important to seek independent financial advice before making decisions on how to pay for your aged care, as this can impact your pension and other financial aspects. Doutta Galla encourages all families to consult a professional to ensure you are making the best decision for your individual personal circumstances. 

The Financial Information Service (FIS) provided by Services Australia offers free, confidential, and independent information to help you understand how aged care fees may affect your finances. Call 132 300 and say Financial Information Service when prompted. 

Moving Forward 
We understand that navigating the costs of aged care can feel overwhelming, but you don’t have to go through it alone. Our team at Doutta Galla is here to support you with information, guidance, and personalised advice. 

For further details, contact us directly, or visit the My Aged Care website to use their fee estimator tool and learn more about the specific costs associated with aged care. 

At Doutta Galla, we are committed to providing quality, affordable care for everyone. Understanding the costs involved is the first step towards planning for the future and ensuring peace of mind for you and your loved ones.