Australians are being urged to scrutinise aged care contracts before signing, with additional charges for everything from cooked breakfasts to entertainment adding to an already expensive bill.
Canstar data insights director Sally Tindall has warned the complex fee structure can make it difficult for families to understand exactly what they are paying for, particularly as providers introduce additional charges for everyday services.
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It comes after an investigation by the ABC revealed Bupa residents could be charged an extra $42 a day for a meal package that includes two cooked breakfasts a week, an additional hot meal option at lunch, a dessert at lunch and a beer, wine or soft drink with lunch and dinner.
The package, known as an Enhanced Dining Experience, costs residents $15,330 a year, with those who do not pay receiving only a continental breakfast.
The fees families need to know about Speaking on Sunrise on Thursday, Tindall said families needed to understand the full range of costs before signing an aged care agreement.
“It’s like learning a new language, trying to get across it, but also you’ve got to learn all the acronyms, and then it’s built up on dollar signs,” she said.
The basic daily fee, which everyone pays, currently sits at about $69 a day, while additional means-tested contributions can add significantly to the bill.
These include a hotelling contribution of about $22 a day and a non-clinical care contribution of up to $109 a day.
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Residents can also face an optional higher everyday living fee, which varies significantly between facilities.
Residents can also face an optional higher everyday living fee, which varies significantly between facilities. (Mick Tsikas/AAP PHOTOS) Credit: AAP/Sunrise The staggering $3 million price tag for an aged care bed Tindall said the average refundable accommodation deposit, known as an RAD, was about $600,000, with some facilities charging up to $3 million.
Under changes introduced on November 1, 2025, providers can retain 2 per cent of a resident’s refundable accommodation deposit each year for the first five years.
Tindall said families who could not afford to pay a large lump sum upfront could instead opt for a daily accommodation payment, known as a DAP.
The payment is calculated using an interest rate of 8.51 per cent of the accommodation cost.
For a room with a $600,000 price tag, that equates to about $140 a day.
“It really adds up,” Tindall said.
The extra charges catching families out Tindall said families should pay particular attention to higher everyday living fees, which have become a point of contention following the introduction of new rules.
The ABC investigation also found some providers were charging residents thousands of dollars a year for additional services, including television packages, barista-style coffee and other dining options.
Tindall said the complexity of the system meant families should seek independent advice and take the time to understand the fees before making a decision.
“I’ve spent hours researching this just for this small segment. It’s incredible. It’s mind-boggling,” she said.
She recommended families start with the government’s My Aged Care website, which provides information about fees and services.
Families can also arrange an appointment with an Aged Care Specialist Officer through Services Australia, either face-to-face or by video.
The Older Persons Advocacy Network and Aged Care Quality and Safety Commission are also available to assist people who have questions or concerns.