There are a number of costs associated with residential aged care. One such cost is the Basic Daily Care fee.
Understanding the current Basic Daily Care fee and how it is calculated allows you to help determine aged care affordability.
In This Article
What is the Aged Care Basic Daily Care Fee?
The Basic Daily Care fee is the baseline cost of residential aged care. It covers the general day-to-day costs of residential aged care, such as means, laundry, cleaning, staff, heating and cooling.
Unlike all other aged care costs, the Basic Daily Care fee is non-negotiable. It is not based on your level of means, nor the quality of the aged care facility.
Do I Have to Pay the Basic Daily Care Fee?
All Australians entering residential aged care must pay the Basic Daily Care fee. This fee is not optional and cannot be reduced – it is the same payment amount for everyone.
How is the Basic Daily Care Fee Calculated?
The Basic Daily Care fee is calculated at 85% of the single Age Pension payment rate.
The single Age Pension rate increases every six months in March and September.
As of September 2023, the single Age Pension rate is $1,002.50 per fortnight.
Therefore, the current Basic Daily Care fee is $60.86 per day. This is calculated using the following formula:
Basic Daily Care fee = ($1,002.50 x 85%) / 14 days
In March 2024, the single Age Pension rate will likely change and the Basic Daily Care fee will need to be recalculated.
Ways to Reduce the Basic Daily Care Fee
There are no ways to reduce the Basic Daily Care fee. It is a mandatory payment for all aged care residents.
While the Basic Daily Care fee is unable to be reduced, all other residential aged care fees can either be reduced or negotiated.
At Core Value Aged Care Advice we help families make the right financial decisions when transitioning a loved one from home or hospital into permanent aged care. If you would like to feel confident in the financial decisions you make when helping a loved-one into care, please call us on 1300 944 011 to speak to an expert aged care adviser.
You might also like:
- Daily Accommodation Payment (DAP) For Aged Care Explained
- What is a Refundable Accommodation Deposit (RAD)?
- Is It Better To Pay RAD or DAP for Aged Care?
Hi, I hope you found this article useful.
If you wish to discuss your situation and what strategies may be of benefit please contact us here
Thanks - Shane
