What is the Basic Daily Fee, and does everyone have to pay it?

Financials, Fees & Funding
Fees & Contributions
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In short...
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.
The details...
What is the Basic Daily Fee, and does everyone have to pay it?
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.
Does 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.
Does 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.
How 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.
Does 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.
Is 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.
What 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.
What 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.
Helpful Local Home Help resources
Takeaways
- 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.
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How providers appear on Local Home Help Local Home Help helps families discover home support services available in their area. Providers may appear on the site in a few different ways. Some providers create and manage their own listing on the platform. Others may appear based on publicly available information about services operating in a particular region. This helps families see a broader view of support options available locally. Where possible, we encourage providers to claim and manage their listing so information such as services offered, contact details and service areas remain accurate and up to date. There are no paid or enhanced listings on Local Home Help, and there never will be. Claiming or managing a listing has no effect on a provider's visibility, ranking, or how often it appears in a consumer's personalised shortlist, it simply keeps the information families see accurate and current. Local Home Help does not charge consumers to access the platform. We may generate revenue in other ways in the future, but none of these will ever influence which providers a consumer sees, how they're ranked, or what appears in their shortlist. Provider visibility is, and will remain, based solely on relevance to each family's stated needs. What does not influence Liz There are no paid or enhanced listings on Local Home Help, not now, and not in the future. No provider can pay for a higher position in Liz results, a better ranking, or inclusion in a consumer's shortlist. This is a permanent commitment, not a current-state description. Claiming or updating a profile does not improve a provider's ranking. It gives Liz more accurate information about the provider's services, coverage and care model, which can make the explanation of why a provider matched clearer, but it has no effect on whether or how highly that provider appears. Local Home Help intends to generate revenue in other ways in the future - for example through tools built for providers, or products separate from the consumer matching experience. None of these will influence which providers appear in Liz's results, how they're ranked, or what a consumer sees in their personalised shortlist. Visibility and ranking are based solely on the fit factors described above, and nothing else. This reflects the platform's core ethos: Local Home Help is built consumer-first. Every design and revenue decision is made so that what a family sees from Liz is the most relevant outcome for them. Never the most profitable outcome for Local Home Help or a provider.
Independence Statement
Our independence Local Home Help is designed to help families navigate the often confusing world of home support and aged care services. The platform aims to present information in a clear and balanced way so families can better understand the types of help available and where to find it. While providers may appear on the platform, Local Home Help does not recommend one provider over another. The decision about which service may be suitable will always depend on individual circumstances. Families are encouraged to contact providers directly, ask questions and make their own enquiries before making a decision. Our focus is to make the process of understanding and finding support at home easier. Local Home Help does not accept payment of any kind in exchange for provider visibility, ranking, or shortlist placement, and never will. Any future revenue Local Home Help generates will come from sources entirely separate from how providers are matched to consumers.
Quality Signals
What to look for when choosing a provider ​ Finding the right support service can take time. When considering a provider, families may wish to look for signs of quality such as: Clear information about services offered Transparent pricing or funding options Experience supporting older people at home Relevant professional qualifications where appropriate Positive feedback or reputation in the community Willingness to answer questions about care and services It is often helpful to speak with more than one provider before making a decision. Local Home Help aims to provide a starting point for exploring services, but the best choice will depend on the needs and preferences of the individual receiving support.
About the Author
Local Home Help Editorial Team
This article was created by Local Home Help to help Australian families better understand aged care and home support options in plain English.
Our content is based on publicly available information from:
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My Aged Care
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Department of Health, Disability and Ageing
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Aged Care Quality and Safety Commission
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Provider pricing schedules and operational experience within the aged care sector.
Local Home Help is an independent consumer information platform and does not provide medical, legal or financial advice.
Important information
Aged care rules, fees, eligibility requirements and program arrangements can change. The information on this page is general guidance only and may not apply to every person or situation.
Before making a financial, legal or care decision, check the latest information with My Aged Care, Services Australia, the Department of Health, Disability and Ageing, or another appropriate official source.
Local Home Help does not provide legal, financial, medical or clinical advice.
Source data
Last reviewed
20/7/26, 9:08 pm