Five fees, one room: How aged care costs are actually calculated

July 29, 2026 — 5:01am

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When people start looking at residential aged care, the first number they find is the Refundable Accommodation Deposit (RAD). It’s the figure advertised on aged care websites, listed in brochures and often used to compare one home with another.

While the RAD is an important number, normally $750,000 or more, it’s only one piece of the puzzle. There are actually five different fees; understanding all of them is the only way to calculate what aged care will cost you. Here’s what to look for.

1. The accommodation cost. This is the price of your room. There are three ways you can pay. First is the lump sum Refundable Accommodation Deposit (RAD), which is refunded when you leave (less 2 per cent per annum, up to 10 per cent).

Alternatively, you can pay........

© The Sydney Morning Herald