PAYING FOR AGED CARE IN PERTH: COMPLETE FINANCIAL GUIDE 2026

Perth families researching residential care encounter a pricing landscape transformed by the New Aged Care Act effective 1 November 2025. The government now fully funds clinical care whilst introducing new contribution structures for personal care and everyday living services. Understanding payment types for aged care requires navigating four distinct categories, each with specific thresholds, caps, and calculation methods.

The complexity amplifies because families entering care after 1 November 2025 face fundamentally different obligations than residents already receiving care. Accommodation payments alone span $350,000 to over $1 million across Perth facilities, whilst new retention arrangements mean these lump sums are no longer 100% refundable. Daily contributions vary from the universal basic fee to means-tested amounts reaching $192.95 per day for highest-means residents.

Understanding how these elements interact transforms overwhelming financial decisions into manageable planning. The New Aged Care Act separates clinical care costs from personal care and everyday living expenses, creating transparency about what government funding covers versus what families contribute based on financial capacity.

Regents Garden, offering quality residential care across five Perth locations, provides transparent aged care pricing including detailed fee structures, payment options, and means testing guidance supporting informed financial decisions. This guide explores paying for aged care in Perth under 2026 regulations.

THE NEW AGED CARE FEE STRUCTURE FROM 1 NOVEMBER 2025

The New Aged Care Act introduced fundamental changes to how Australians pay for residential care. Understanding these changes prevents financial surprises and supports better planning.

What Changed on 1 November 2025

The previous system charged residents for both clinical and personal care through a single Means Tested Care Fee. The new structure separates these costs, with government now funding 100% of clinical care including nursing, physiotherapy, and medication management.

Families entering care from 1 November 2025 now face four payment categories:

• Basic Daily Fee covering essential living costs
• Non-Clinical Care Contribution for personal care services
• Hotelling Supplement Contribution for everyday living services
• Accommodation Payments for room and facility costs

Clinical Care Now Fully Government-Funded

This represents the most significant change under the New Aged Care Act. Previously, higher-means residents contributed substantially toward clinical care costs through means-tested fees. From 1 November 2025, the government pays full clinical care costs regardless of resident wealth.

Clinical care includes registered nursing, wound care, medication administration, physiotherapy, occupational therapy, and medical consultations. Families no longer contribute financially toward these essential health services.

The Four Payment Categories Explained

Each category serves distinct purposes within the aged care funding model. The Basic Daily Fee applies universally whilst other contributions depend on means assessment outcomes determined by Services Australia.

Understanding which categories apply to specific circumstances requires knowing income and asset thresholds triggering each contribution type. Lower-means residents may pay only the Basic Daily Fee, whilst higher-means residents pay all four categories simultaneously.

BASIC DAILY FEE: UNIVERSAL PAYMENT FOR ALL RESIDENTS

Every aged care resident pays the Basic Daily Fee regardless of financial circumstances, government support status, or pension eligibility.

Current 2026 Rate and Indexation

The Basic Daily Fee currently sits at $65.55 per day ($23,925.75 annually) as of January 2026. This amount equals 85% of the single basic Age Pension and adjusts twice yearly in March and September following pension indexation.

This fee remains constant regardless of whether someone is single, partnered, receives an Age Pension, or is entirely self-funded. Everyone pays the same Basic Daily Fee amount.

What the Basic Daily Fee Covers

This payment contributes toward everyday living expenses including meals, cleaning services, laundry, utilities like heating and cooling, and basic amenities. It represents the baseline cost of maintaining daily operations within aged care facilities.

The Basic Daily Fee does not cover accommodation costs, clinical care, or optional premium services. These items fall under separate payment categories with different calculation methods.

No Exemptions or Reductions Available

Unlike other aged care fees, the Basic Daily Fee has no hardship exemptions or means-tested reductions. Even residents receiving full government support for accommodation costs must pay this daily amount.

This universality ensures all residents contribute something toward their daily living costs whilst government subsidies cover the substantial care and operational expenses beyond this baseline fee.

NON-CLINICAL CARE CONTRIBUTION: MEANS-TESTED PERSONAL CARE

The Non-Clinical Care Contribution (NCCC) replaced the old Means Tested Care Fee for residents entering care from 1 November 2025. This represents the most complex fee category with multiple thresholds, caps, and calculation factors.

What Non-Clinical Care Includes

The NCCC covers personal care services like bathing assistance, mobility support, help with eating, continence management, and lifestyle activities. These services maintain dignity and independence whilst supporting quality of life beyond purely medical needs.

Non-clinical care differs from clinical care in that it addresses daily living activities rather than medical treatment. Staff providing bathing assistance deliver non-clinical care, whilst registered nurses managing medication provide clinical care.

Asset and Income Thresholds

The NCCC applies only when assessable assets exceed $532,055. Below this threshold, residents pay nothing toward non-clinical care costs beyond the Basic Daily Fee, with government covering the full amount.

Maximum NCCC obligations trigger when assets reach $1,023,454 or above. Between these thresholds, contribution amounts scale proportionally based on means assessment calculations Services Australia performs.

Daily, Annual, and Lifetime Caps

The NCCC faces three types of caps protecting residents from unlimited contributions:

• Daily cap: $105.30 per day maximum regardless of means
• Annual maximum: $38,435 for residents paying maximum daily rate
• Lifetime cap: $135,318.69 in total contributions OR four years of payments

The lifetime cap creates significant financial planning implications. Once reached, residents stop paying NCCC entirely whilst government covers these costs for remaining care duration.

Four-Year Cap Considerations

Residents paying any NCCC amount reach the four-year cap after four cumulative years making these contributions. This differs from the dollar-based lifetime cap which only highest contributors reach within four years.

Lower-means residents paying modest NCCC amounts may require eight or more years to reach the $135,318.69 dollar cap, but the four-year time limit still applies, whichever comes first.

HOTELLING SUPPLEMENT CONTRIBUTION: EVERYDAY LIVING COSTS

The Hotelling Supplement Contribution (HSC) represents an entirely new fee category introduced 1 November 2025. This contribution tops up the Basic Daily Fee for higher-means residents to cover enhanced everyday living services.

Understanding the Hotelling Concept

Hotelling costs encompass the hotel-like aspects of residential care including quality meals, regular cleaning, laundry services, and comfortable living environments. The government pays a Hotelling Supplement to providers covering these costs, but higher-means residents now contribute toward this supplement.

This contribution ensures wealthier residents pay more toward everyday amenities whilst lower-means residents receive full government coverage of these services through the supplement.

Asset Thresholds and Maximum Contributions

The HSC applies at lower asset levels than the NCCC. Contributions begin when assessable assets exceed $252,000, reaching the maximum daily rate of $22.15 when assets hit $355,366 or above.

This lower threshold means more residents pay HSC compared to NCCC. Middle-income families may face HSC obligations whilst remaining below NCCC thresholds, creating additional financial planning considerations.

No Lifetime Cap on Hotelling Contributions

Unlike the NCCC, the Hotelling Supplement Contribution has no lifetime cap. Residents continue paying this amount throughout their entire aged care stay, regardless of duration.

For maximum contributors, this represents $8,085 annually for the full care duration. Long-term residents may ultimately pay more in total hotelling contributions than NCCC despite the latter's higher daily rate.

ACCOMMODATION PAYMENTS: RAD, DAP, AND COMBINATION OPTIONS

Accommodation costs typically represent the largest aged care expense, particularly in premium Perth facilities where prices exceed $1 million for sought-after locations.

Three Payment Options Explained

Families choose how to pay accommodation costs from three options, each with distinct financial implications:

• Refundable Accommodation Deposit (RAD): Lump sum payment refunded when leaving care
• Daily Accommodation Payment (DAP): Non-refundable daily rental-style payment
• Combination: Partial RAD plus reduced DAP on remaining amount

The choice significantly affects cash flow, investment returns, and ultimately total care costs over time. Professional financial advice proves particularly valuable when navigating this decision.

RAD 2% Annual Retention: Critical New Requirement

From 1 November 2025, providers retain 2% annually of RAD balances for maximum five years. This fundamental change means RADs are no longer 100% refundable as they were under the old system.

Retention amounts are calculated daily on the reducing RAD balance and deducted monthly. After five years, no further retention occurs, protecting residents in long-term care.

Example: A $500,000 RAD faces approximately $10,000 first-year retention, $9,800 second year (calculated on reducing balance), continuing for five years. Maximum total retention approaches $50,000 (10% of original amount).

Families must factor this retention into RAD vs DAP decisions, as it represents non-refundable cost reducing the capital returned when leaving care.

Daily Accommodation Payment Calculations

DAP amounts are calculated by applying the Maximum Permissible Interest Rate (MPIR) to the agreed room price. The MPIR is set by government and fixed at entry date, remaining constant throughout the stay.

As of early 2026, the MPIR sits at approximately 7.78%. For a $500,000 room price, this generates a DAP of approximately $106.44 per day. This non-refundable payment continues for the entire care duration.

Combination Payment Strategies

Many families choose combination payments, paying partial RAD whilst the DAP covers remaining accommodation costs. This approach balances capital preservation with manageable cash flow.

Important consideration: The RAD portion still faces 2% annual retention, whilst the DAP portion remains non-refundable. Combination strategies require comparing total five-year costs under various RAD/DAP splits against expected care duration and investment returns.

Government Support for Low-Means Residents

Residents with income below $34,762 and assets below $63,000 receive full government support for accommodation costs through the Accommodation Supplement. These thresholds apply as of January 2026 and adjust with indexation.

Partially supported residents pay Accommodation Contributions based on means assessment, with government covering the difference between their contribution and the facility's agreed price.

HIGHER EVERYDAY LIVING FEE: OPTIONAL PREMIUM SERVICES

The Higher Everyday Living Fee (HELF) replaced extra service and additional service fee arrangements from 1 November 2025, creating clearer protections and transparency around optional premium services.

What HELF Covers

HELF enables residents to purchase enhanced services beyond aged care standard requirements. Premium offerings through professional amenity services might include wine with meals, barista coffee, enhanced entertainment options, premium personal services, or superior furnishings and décor.

Providers set HELF pricing based on services offered. Agreements must specify each service, delivery standards, frequency, and associated costs clearly.

Important HELF Protections

The New Aged Care Act includes strong protections around HELF to prevent coercion or discrimination:

• Cannot be charged before entering care
• Cannot be used as entry condition or to secure a room
• Must be agreed in writing with clear service descriptions
• Cancellable at annual review points without penalty
• Cannot cover essential services required under Quality Standards

These protections ensure HELF remains genuinely optional whilst preventing facilities from creating two-tier care systems based on ability to pay optional fees.

GRANDFATHERING PROTECTIONS: WHO KEEPS OLD FEE ARRANGEMENTS

Not everyone entering care after 1 November 2025 faces the new fee structure. Grandfathering provisions protect specific groups from NCCC, HSC, and RAD retention requirements.

Who Qualifies for Grandfathering

Three groups remain on old fee arrangements despite entering care after 1 November 2025:

• Residents already in aged care on 31 October 2025
• People approved for, receiving, or waiting for Home Care Packages as at 12 September 2024
• Existing residents changing facilities within 28 days from 1 November 2025

These residents continue paying Means Tested Care Fees under the old system, with annual caps of approximately $35,238 and lifetime caps of $84,571.66 as of January 2026.

RAD Retention Grandfathering

Separate grandfathering applies to RAD retention. Residents in care on 31 October 2025 never face 2% retention, even if they paid or topped up their RAD after 1 November 2025.

Similarly, grandfathered residents changing facilities maintain their retention-free status, provided the facility change occurs within 28 days.

Opting Into New Arrangements

Grandfathered residents can opt into new fee arrangements if financially beneficial. This decision requires careful analysis comparing old system costs against new NCCC/HSC obligations based on individual means.

For some higher-means residents, the four-year NCCC cap combined with government-funded clinical care may cost less than unlimited Means Tested Care Fees under old arrangements. Professional advice proves essential when considering this election.

FINANCIAL PLANNING STRATEGIES FOR PERTH FAMILIES

The new fee structure creates complex planning challenges requiring strategic thinking about timing, payment methods, and means assessment management.

Means Assessment Critical Importance

Services Australia means assessment determines obligations across all fee categories. Income and asset levels trigger different threshold requirements for HSC and NCCC whilst also affecting accommodation support eligibility.

Families should request means assessment early, even before selecting facilities. Assessment results remain valid for 120 days, providing time to make informed decisions without pressure.

RAD Payment Impact on Contribution Calculations

Paying a RAD increases assessable assets for NCCC and HSC calculations. A $500,000 RAD payment could push someone from zero contributions into paying maximum daily rates for both categories.

This creates tension between accommodation payment preferences and care contribution minimization. Some families benefit from paying DAP rather than RAD despite higher total accommodation costs, because lower assets reduce NCCC and HSC obligations.

Four-Year NCCC Cap Planning

For families expecting longer care stays, the four-year NCCC cap creates strategic opportunities. Maximum contributors paying $38,435 annually face $153,740 total NCCC over four years, but reach the $135,318.69 lifetime cap in approximately 3.5 years.

After reaching this cap, NCCC obligations cease whilst HSC and accommodation payments continue. This creates different cashflow profiles depending on care duration expectations.

Professional Financial Advice Essential

The interaction between RAD retention, NCCC caps, HSC calculations, and accommodation payment methods creates complexity beyond most families' financial planning experience. Professional advisers specialising in aged care can model various scenarios comparing total costs under different strategies.

Quality advisers consider investment returns, expected care duration, capital preservation priorities, and estate planning implications when recommending payment approaches. This guidance proves particularly valuable given RADs are no longer fully refundable.

CONCLUSION

Paying for aged care in Perth under the 2026 New Aged Care Act requires understanding fundamentally different fee structures than existed before 1 November 2025. The government now fully funds clinical care whilst introducing new contribution categories for personal care and everyday living services, with RAD retention reducing capital refunds for higher lump sum payers.

Families researching transparent information about aged care costs benefit from understanding the four payment categories, threshold triggers, and cap protections before committing to specific facilities. Professional financial guidance helps navigate complex interactions between payment choices and means-tested contributions.

To discuss payment types for aged care and arrange facility tours with detailed fee explanations, call (08) 6117 8178 to speak with care specialists. Regents Garden operates quality aged care residences across five Perth locations: Bateman, Lake Joondalup, Booragoon, Aubin Grove, and Scarborough, with retirement villages at Lake Joondalup and Aubin Grove.