Home Care vs Residential Care

For most people with moderate care needs, staying at home with government-funded support is both cheaper and associated with better quality of life. Here are the numbers.

Figures as at March 2026 · General information only

Indicative ranges free5-year Budget Planner on paid plan

Support at Home

$0–$15k

Estimated 5-year out-of-pocket cost

Full pensioner, modest savings, Classification 3–5

Residential Care

$120–$250k+

Estimated 5-year out-of-pocket cost

Full pensioner, modest savings, from 1 Nov 2025

Important rules to know

•Government pays accommodation for low-means residents (income under $35,313/year, assets under $64,500).
•You cannot be required to pay a RAD that reduces your assets below $63,000.
•RADs above $758,627 require prior Aged Care Pricing Authority approval.
•NCCC is time-limited to 4 years (1,460 days) for post-November 2025 entrants, with a lifetime cap of $137,917.
•RAD is treated as a financial asset by Centrelink — deemed income at 1.25%/3.25% may reduce your pension.
•DAP uses the MPIR locked at entry date and is indexed semi-annually (20 March and 20 September).

Cost Breakdown

Indicative ranges for a full pensioner with modest savings (under $500k). Residential fees reflect the post-1 November 2025 structure. Individual results depend on your specific financial circumstances.

Component	Support at Home	Residential Care
Accommodation	Nil (stay in own home)	RAD $400k–$573k or DAP $84–$120/day
Basic Daily Fee	Nil	~$65.55/day (~$23,926/year)
Means-tested Contributions	5–50% of independence services	HSC up to $22.15/day + NCCC up to $105.30/day
Family Home Impact	None	Means-assessed if no protected person (capped ~$201k)
Age Pension Impact	Minimal	RAD exempt from pension, DAP from income
5-Year Total	$0–$15,000	$120,000–$250,000+

Accommodation

Home

Nil (stay in own home)

Residential

RAD $400k–$573k or DAP $84–$120/day

Basic Daily Fee

Home

Nil

Residential

~$65.55/day (~$23,926/year)

Means-tested Contributions

Home

5–50% of independence services

Residential

HSC up to $22.15/day + NCCC up to $105.30/day

Family Home Impact

Home

None

Residential

Means-assessed if no protected person (capped ~$201k)

Age Pension Impact

Home

Minimal

Residential

RAD exempt from pension, DAP from income

Staying at home is not always the best option. Residential care may be more appropriate when:

Complex clinical needs require 24-hour nursing care
Severe cognitive decline makes living at home unsafe
The home environment cannot be safely modified
The primary carer's health is at serious risk
Social isolation at home is severe and home care cannot address it
The person's own preference, after understanding all options, is residential care

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If paid as a daily rental: ~$98.14/day

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This is general information based on published government rules as at March 2026. It is not personal financial advice. Individual costs depend on income, assets, and care needs. We recommend consulting a qualified financial adviser before making decisions involving significant sums.