Basic Daily Fee in Aged Care 2026: What You Pay
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Every person receiving government-subsidised aged care in Australia pays a basic daily fee. Whether you are receiving a Home Care Package at home or living in a residential aged care facility, this fee is your minimum contribution toward the cost of your care.
This guide explains exactly how much the basic daily fee is in 2026, how it is calculated, and what it covers for both home care and residential aged care.
What is the basic daily fee?
The basic daily fee is a standard contribution that all aged care recipients pay. It is set by the Australian Government and adjusted twice a year (on 20 March and 20 September) in line with pension increases.
Think of it as a contribution toward your daily living costs, similar to what you would spend on meals, utilities, and household expenses if you were living independently.
Key points about the basic daily fee:
- Everyone pays it, regardless of income or assets
- It cannot be reduced or waived (unlike other aged care fees)
- It is the same amount for everyone within each care type
- It is adjusted twice yearly in line with pension rates
Basic daily fee amounts in 2026
Residential aged care basic daily fee
The residential aged care basic daily fee is set at 85% of the single basic Age Pension.
| Period | Daily amount | Annual amount |
|---|---|---|
| March 2026 onwards | $61.96 | $22,615 |
| September 2025 - March 2026 | $60.86 | $22,214 |
This fee covers basic living expenses in the facility, including:
- Meals (breakfast, lunch, dinner, and snacks)
- Cleaning and laundry services
- Heating, cooling, and electricity
- General maintenance of the facility
Home care package basic daily fee
The home care package basic daily fee is capped at 17.5% of the single basic Age Pension.
| Period | Maximum daily amount | Maximum annual amount |
|---|---|---|
| March 2026 onwards | $12.51 | $4,566 |
| September 2025 - March 2026 | $12.29 | $4,486 |
Important: Unlike residential care, some home care package providers may choose to charge less than the maximum, or not charge this fee at all. Always check with your provider what they charge.
How the basic daily fee is calculated
The basic daily fee is linked directly to the single basic Age Pension rate. The formula is straightforward:
Residential care: 85% of single basic Age Pension per day
Home care: Up to 17.5% of single basic Age Pension per day
As the Age Pension increases (typically twice a year), the basic daily fee increases proportionally. The amounts are published by the Department of Health and Aged Care and take effect from the pension increase date.
2026 calculation example
Using the March 2026 Age Pension rate of approximately $1,144.40 per fortnight (single):
- Daily pension rate: $1,144.40 / 14 = $81.74
- Residential basic daily fee: $81.74 x 85% = $69.48 (approximate)
- Home care basic daily fee: $81.74 x 17.5% = $14.30 (approximate maximum)
Note: Actual published amounts may vary slightly due to rounding conventions used by the Department.
Basic daily fee for home care packages
If you receive a Home Care Package, the basic daily fee is deducted from your package budget before services are delivered.
How it works in practice
Let us say you have a Level 2 Home Care Package worth $17,346 per year:
| Component | Annual amount |
|---|---|
| Government subsidy | $17,346 |
| Minus basic daily fee | -$4,566 |
| Minus care management (approx 15%) | -$2,602 |
| Available for services | $10,178 |
This is why understanding all the fees is important. The headline funding figure is not what you actually receive in services.
What if I cannot afford the basic daily fee?
If you genuinely cannot afford the basic daily fee for your Home Care Package, speak with your provider. Some options include:
- Negotiate with your provider: Some providers absorb the fee or reduce it
- Contact Services Australia: Request a financial hardship assessment
- Talk to a financial counsellor: Free services are available through the National Debt Helpline (1800 007 007)
For a complete overview of all home care costs, see our Home Care Package spending guide.
Basic daily fee for residential aged care
In residential aged care, the basic daily fee is one of several costs you may need to pay. Here is how it fits into the overall fee structure:
Full fee breakdown for residential care
| Fee type | Who pays | Amount |
|---|---|---|
| Basic daily fee | Everyone | ~$61.96/day |
| Means-tested care fee | Income/asset-tested | Varies |
| Accommodation payment (RAD/DAP) | Non-supported residents | Varies (average $350,000-$550,000 RAD) |
| Extra services fee | If you choose extra services | Varies |
The basic daily fee vs other fees
Unlike the means-tested care fee, the basic daily fee:
- Applies to everyone equally
- Cannot be reduced based on financial circumstances
- Is set by the government (not the provider)
- Is the same across all residential facilities
For more on residential aged care costs, see our guide on nursing home costs in Australia.
Basic daily fee under the Support at Home program
The Support at Home program launched on 1 July 2025 and is progressively replacing Home Care Packages. Under Support at Home:
- The basic daily fee structure is being reviewed
- New co-contribution arrangements apply based on your means
- The government aims to make the system more equitable
- Existing Home Care Package recipients transitioning to Support at Home will have their fees recalculated
If you are currently on a Home Care Package, your provider should have communicated how the transition affects your fees. If you are unsure, contact My Aged Care on 1800 200 422 or speak with your provider directly.
For more details on Support at Home pricing, see our Support at Home prices guide.
How to reduce your overall aged care costs
While the basic daily fee cannot be reduced, you can take steps to minimise your total aged care costs:
- Get a proper financial assessment: Ensures you are not overpaying on means-tested fees
- Compare providers: Fee structures vary, especially for home care (compare providers through MD Home Care)
- Understand your RAD options: In residential care, choosing DAP over RAD (or a combination) can affect your pension eligibility
- Claim the Pension Supplement: If you receive the Age Pension, you may be entitled to the Pension Supplement
- Use our aged care fees calculator: Estimate your total costs before committing
March 2026: Ministerial Investigation Into Premium Service Fees
On 16 March 2026, the Aged Care Minister announced an investigation into claims that some aged care providers are charging premium fees for basic services that should be covered under standard care arrangements, including the basic daily fee. The Minister specifically named Opal Healthcare as one provider under scrutiny, calling the practice “disgusting sidestepping” of aged care regulations.
The basic daily fee should cover standard living expenses such as meals, laundry, and facility maintenance. If providers are charging separately for these core services on top of the basic daily fee, this may constitute inappropriate fee charging. Families should carefully review itemized bills to ensure they are not being double-charged for services already covered by the basic daily fee.
If you believe you are being charged inappropriately for basic services, lodge a complaint with the Aged Care Quality and Safety Commission on 1800 951 822. The Minister emphasized that while regulations provide absolute minimum standards, Australians expect and deserve dignity in aged care, not exploitative pricing practices.
Source: ABC News, 16 March 2026
Frequently asked questions
Is the basic daily fee tax-deductible?
No. The basic daily fee is not tax-deductible for individual taxpayers. It is considered a personal living expense, similar to food and accommodation costs you would pay regardless of your care situation.
Do couples pay two basic daily fees?
Yes. If both members of a couple are in aged care (either home care or residential), each person pays their own basic daily fee. However, the means testing for other fees considers your combined income and assets, which may result in lower means-tested care fees.
What happens if I do not pay the basic daily fee?
If you do not pay your basic daily fee:
- Home care: Your provider may reduce or suspend services, or pass the charge on to you as a debt
- Residential care: The facility cannot discharge you for non-payment, but the debt accumulates and may be recovered from your estate
If you are struggling to pay, contact Services Australia or speak with your provider about a payment plan before the situation escalates.
Does the basic daily fee change when the pension increases?
Yes. The basic daily fee is directly linked to the single basic Age Pension rate and changes whenever the pension is adjusted (typically on 20 March and 20 September each year).
Getting help with aged care fees
Understanding aged care fees can be confusing. Here are resources that can help:
- My Aged Care: 1800 200 422 or myagedcare.gov.au
- Services Australia: For income and assets assessments
- Financial Information Service: Free financial guidance from Services Australia (call 132 300)
- MD Home Care: Connect with providers who can explain fee structures - call 1800 953 253
Find aged care providers in your region through our aged care directory. We cover Western Sydney, Inner Melbourne, Brisbane North, Adelaide, Perth, and 21 more regions across Australia.
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