What is the Basic Daily Fee, and does everyone have to pay it?
For Support at Home, there is no Basic Daily Fee. You may instead pay contributions only when certain approved services are delivered. In residential aged care, most residents pay a Basic Daily Fee toward everyday living costs.
Key points
- Support at Home has no Basic Daily Fee.
- Residential aged care generally does have a Basic Daily Fee.
- Other contributions depend on means and entry arrangements.
The Basic Daily Fee is a fee charged by an aged care home to help cover ordinary daily living costs.
It contributes towards services such as:
meals
cleaning
laundry
heating and cooling
utilities
day-to-day services provided by the aged care home.
It is separate from accommodation costs and any means-tested contributions towards care.
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01Guide sectionDoes the Basic Daily Fee apply to Support at Home?
No. Support at Home does not charge a Basic Daily Fee.
Under Support at Home, you contribute only when you receive certain services. Your contribution is calculated as a percentage of the agreed service price, based on:
the type of service
your pension status
your assessed income and assets.
Clinical services such as approved nursing and physiotherapy have no participant contribution. Independence and everyday living services may require a contribution.
This differs from the former Home Care Packages Program, where some providers charged a Basic Daily Fee regardless of whether the person received a service that day. Support at Home replaced that arrangement with service-based contributions.
02Guide sectionDoes the fee apply in residential aged care?
Yes. People living permanently in a government-funded aged care home can be asked to pay a Basic Daily Fee.
The fee is not means tested. It can apply whether the resident is:
a full pensioner
a part pensioner
a self-funded retiree.
A resident may also have other costs based on their income, assets and accommodation arrangements. These are calculated separately.
03Guide sectionHow much is the Basic Daily Fee?
The maximum Basic Daily Fee is set at 85% of the single basic Age Pension.
As at July 2026, the maximum is:
$66.80 per day
approximately $935.20 per fortnight
approximately $24,382 per year.
The rate is reviewed on 20 March and 20 September each year when pension rates are indexed.
An aged care home cannot charge more than the legislated maximum Basic Daily Fee, although it may choose to charge less.
04Guide sectionDoes the resident keep part of their pension?
Yes. Because the maximum fee is 85% of the single basic Age Pension, a full pensioner retains the remaining portion of their pension for personal expenses.
This may be used for costs such as:
clothing
toiletries
telephone expenses
personal entertainment
medications
appointments
other personal purchases.
However, the resident may also have accommodation or means-tested aged care costs depending on their financial circumstances.
05Guide sectionIs the Basic Daily Fee the only residential aged care cost?
No. Depending on when the person entered care and the result of their means assessment, they may also pay:
an accommodation payment or contribution
a hotelling contribution
a non-clinical care contribution
a means-tested care fee under older arrangements
optional higher everyday living fees.
The Basic Daily Fee helps cover everyday living expenses. It does not cover the resident’s room or all costs associated with their care.
06Guide sectionWhat about residential respite care?
A person receiving short-term residential respite can also be charged a Basic Daily Fee.
The maximum is currently the same as for permanent residential aged care: $66.80 per day. Some homes may also request a limited booking fee, which must be credited against the fees once the respite stay begins.
The practical distinction is:
Support at Home does not have a Basic Daily Fee you pay contributions when eligible services are delivered. Residential aged care generally has a daily fee to help cover meals, cleaning, laundry and other everyday living costs.
07Guide sectionWhat should I do next?
Confirm whether you are asking about care at home or an aged care home, then request a written fee estimate from My Aged Care, Services Australia or the provider.
08Guide sectionHelpful Local Home Help resources
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