Aged care fees to be reviewed next week

Services Australia will next week conduct a review of aged care fees, in what has now become a monthly event. These reviews were formerly conducted quarterly, but the Australian government last October announced an increase in the frequency of reviews.

“These more regular reviews will apply changes to your fees closer to when changes happen,” the Services Australia announcement stated. “They will also more regularly calculate any applicable refund amounts for you.”

These reviews apply to both residential and home care fees. 

For residential aged care, the now monthly review incorporates:

  • changes to a care recipient’s personal or financial circumstances
  • an assessment of whether the care recipient is entitled to any refunds based on the change
  • an adjustment to the government subsidy you’re paid as a result of the changes.

For home aged care recipients, in addition to the above processes, the review will set the care recipient’s fees for the month. 

What does a change in aged care fees mean for you?

There is no requirement for aged care recipients to do anything if a change is made. However, Services Australia will send a letter to you and your provider in either of the following circumstances:

  • 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.
  • a refund is due to the care recipient.

Care recipients will not receive a letter if the basic daily fee is the only change. If a refund is due to the care recipient, it will be sent as part of the normal claim process.

Why would my aged care fees change?

There are a number of triggers for a change in aged care fees. These include:

  • changes to your care needs or home care package level
  • changes to your financial circumstances
  • changes to your personal circumstances.

On top of these, the review will incorporate any CPI adjustments. However, it’s important to note there has been no change to the frequency of CPI adjustments. These will continue to be made three times a year, on 20 March, 1 July and 20 September. 

What about backdating?

There’s good news for aged care recipients on this front. If a review identifies a reduction in your aged care fees, the changes will be calculated on the effective date of the change and a refund sent.

But if the changes result in a higher fee, the higher fee will only apply from the next payment.

What else do care recipients need to know?

The May aged care fees review will be conducted next Wednesday 22 May. This means care recipient events will not be able to be lodged between 3pm AEST Wednesday 22 May and 8am AEST Thursday 23 May 2024.

Notification of any fee changes or refunds resulting from the review as outlined above will be sent by letter to care recipients and providers.

Services Australia has advised that the next two reviews will be on Thursday 20 June 2024 and Wednesday 17 July 2024.

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: Why aged care facilities have younger Aussies

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. I too had no idea this new system is in play .
    Did services Australia write to its customers advising of the new idea ?
    I can think of nothing but negatives so I guess we wait for another mess.
    Let me just give one question I would ask.
    If a means tested loved one in an Agedcare home falls just short of a part govt pension because they are above the Assett test on one month but because of the fluctuation of superannuation is entitled to a govt pension the next month and so on it will be an accounting nightmare and how is an elderly person going to cope with that.
    They are still 5months behind in pension applications however are they going to handle this change.
    Also where are the “extra service “ homes going to dovetail into this change.
    I am sure it’s well meaning but I say “good luck”

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