Aged care fees reviewed

Carers of those in aged care may have noticed they were unable to lodge care recipient events after 3pm yesterday. This is because Services Australia was conducting its regular review of aged care fees.

In line with an announcement made by the federal government last October, Services Australia now conducts these reviews monthly. Until late last year, aged care fee reviews were conducted quarterly. Any aged care recipients whose fees have changed as a result of yesterday’s review will receive a letter advising them.

A letter will also be sent to the care recipient, provider, and their nominee if they have one, if either:

  • a refund is due
  • the new income or means-tested fee or accommodation contribution is increased by 10 cents or more per day or decreased by 1 cent or more per day.

Letters will not be sent if the only change is the basic daily fee.

If a care recipient is eligible for a refund, Services Australia will send the refund as part of the normal claim process.

Are there further changes in the wings?

Earlier this year, the federal government hinted at further changes to the way aged care fees are calculated. aged care minister Anika Wells said in March she believed wealthy retirees should pay more for their own aged care.

This followed the tabling of a report by Ms Wells, chair of an age care task force. The task force concluded that it was neither optimal nor that taxpayers pay much of the aged care bill. Taxpayers were funding 75 per cent of residential care costs and 95 per cent of in-home care costs, the task force concluded.

The task force review found the government should continue funding the care itself. However, those with financial means should pay for their own basic living and accommodation costs. 

The task force report explained that the changes to fee structure would accommodate much of the baby boomer generation retiring. Australia will have more retirees needing care and needing it for longer, it said.

While further changes to the structure of aged care fees appear inevitable, they won’t be sudden. The task force acknowledged that those currently in aged care should not have the rules changed on them.

Another aged care fee adjustment

While substantial changes to aged care fees are likely some way off, those affected by aged care fees should note that another fee adjustment will take place soon. 1 July will mark the day these fees are adjusted in line with the Consumer Price Index (CPI). Fees are updated in line with regular CPI changes each year on 20 March, 1 July and 20 September.

The next two monthly reviews of aged care fees will take place on Wednesday 24 July and Wednesday 21 August.

Are you an aged care recipient? Were you aware that aged care fees are now reviewed monthly instead of quarterly? Let us know via the comments section below.

Also read: Taskforce considers user-pays model for aged care

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Andrew Gigacz
Andrew Gigacz
Andrew has developed knowledge of the retirement landscape, including retirement income and government entitlements, as well as issues affecting older Australians moving into or living in retirement. He's an accomplished writer with a passion for health and human stories.


  1. It would be useful if Services Australia (Centrelink) would detail the basis on which they calculate means tested age care fees (and similarly the Age Pension). Better still make the information available online with full transparency so we can easily check that the calculations are correct. For example, if they have included a “gift” then it should state how much that was, the deemed income amount, and associated deeming calculations, together with when that gift no longer applies for deeming purposes.

- Our Partners -


- Advertisment -
- Advertisment -