Australian Nursing Home Costs in 2026: A Complete Price Guide

Planning for aged care accommodation requires careful consideration of various expenses and support mechanisms. As Australia’s population ages, understanding the cost structure of residential aged care facilities becomes increasingly important for families and individuals preparing for this transition.

Estimated monthly costs for nursing homes in 2026

Monthly expenses for residential aged care in Australia depend on several variables, including the type of room, level of care required, and facility location. For 2026, basic accommodation fees typically range from AUD 1,800 to AUD 3,500 per month for shared rooms, while private rooms can cost between AUD 2,500 and AUD 5,000 monthly. These figures represent accommodation components only and do not include care fees or additional services.

Means-tested care fees, which vary based on individual income and assets, generally add AUD 500 to AUD 2,000 per month. The basic daily care fee, set by the government, is estimated at approximately AUD 60 per day (around AUD 1,800 monthly) for 2026. Combined, total monthly costs can range from AUD 4,100 to AUD 8,800 or more, depending on personal circumstances and facility standards.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

What are the main factors affecting the price?

Several elements influence the overall cost of residential aged care. Geographic location plays a significant role, with facilities in metropolitan areas like Sydney and Melbourne typically charging higher accommodation fees than regional centres. The quality and type of accommodation, from shared rooms to private suites with ensuite facilities, directly impacts pricing.

The level of care required is another crucial factor. Residents needing high-level nursing care or specialized dementia support incur higher means-tested care fees. Individual financial circumstances, including income from pensions, investments, and the value of assets, determine eligibility for government subsidies and the amount of means-tested fees payable. Facility reputation, amenities such as landscaped gardens, entertainment programs, and additional services also contribute to cost variations.

What services are typically included in the monthly fee?

Standard monthly fees generally cover basic accommodation, including a furnished room, utilities, and maintenance. Daily personal care assistance such as help with bathing, dressing, and mobility is included, along with nursing care provided by qualified staff. Most facilities incorporate meals (breakfast, lunch, dinner, and snacks), laundry services for personal clothing and linen, and access to common areas and social activities.

Basic medical supplies, medication management, and coordination with healthcare professionals are typically part of the care package. Recreational programs, group activities, and access to facility amenities like libraries or gardens are also standard inclusions. However, premium services such as hairdressing, specialized therapies, or personal outings may incur additional charges.

What other costs do you need to consider?

Beyond the standard monthly fees, residents and families should budget for extra expenses. Personal items such as toiletries, clothing, and footwear are not covered. Additional services like physiotherapy, podiatry, or specialized dental care often require separate payment unless arranged through external providers covered by Medicare or private health insurance.

Hairdressing, beauty treatments, and personal entertainment choices such as newspapers or streaming services represent ongoing costs. Some facilities charge extra for premium meal options, guest meals, or room upgrades. Medical expenses not covered by Medicare, including some medications, mobility aids, or specialized equipment, should also be factored into budget planning. Refundable Accommodation Deposits (RADs), which can range from AUD 200,000 to over AUD 1,000,000 depending on the facility, represent a significant upfront cost, though families may choose to pay this as a daily fee instead.

Does the government provide financial assistance to cover private accommodation costs?

The Australian Government offers various forms of financial support for aged care residents. Those who meet income and asset thresholds may receive full or partial government subsidies covering accommodation costs. The Accommodation Supplement helps eligible residents who cannot afford to pay accommodation fees, with the government paying the facility directly on their behalf.

The Age Pension and other income support payments continue while in residential care, though they may be reduced depending on the type of accommodation payment chosen. Centrelink conducts means testing to determine eligibility for subsidies and the level of fees payable. The Commonwealth Home Support Programme and other initiatives provide additional assistance for those transitioning into care.

Families should contact Services Australia or My Aged Care to arrange a financial assessment, which determines eligibility for government support and calculates individual fee obligations. Financial counsellors and aged care specialists can provide guidance on maximizing available subsidies and structuring payments to minimize out-of-pocket expenses while preserving assets where possible.

Understanding the complete cost structure of residential aged care empowers families to plan effectively and access appropriate support. With careful research and professional advice, navigating the financial aspects of aged care becomes more manageable, ensuring quality care without unnecessary financial strain.