How much does private aged care at home really cost in Melbourne?

Looking for private support at home in Melbourne and wondering about aged care costs? Here’s the short version: the cost of aged care at home depends on how many hours you choose, the mix of personal and clinical care, and whether you use government support alongside private services. Most families in Toorak and across Melbourne combine a clear plan, a consistent aged care provider, and smart funding to keep parents safe, comfortable and well supported.

What drives the cost of aged care at home?

Three levers set the price you need to pay for aged care services at home:

• Level of help: light domestic help vs daily personal care vs complex clinical care.
• Time and timing: daytime vs night, weekends and public holidays.
• Who pays: fully private, or private plus government support (for example, a Home Care Package).

Your financial situation also matters. If you access a package, Services Australia looks at your income and assets to work out any income-tested care fee. If you step into residential aged care later, a separate means-tested care fee and accommodation costs apply. We’ll unpack both so you can plan with confidence.

The two funding lanes: fully private vs government-supported care

Lane 1: Fully private aged care at home (Melbourne focus)

You choose hours, the same familiar carers, and any extras you want. You pay the provider’s service fees directly. Premium private providers like Acquaint often include:

• A dedicated clinically qualified care coordinator (Service Manager) and a stable team (not a new person every time).
• Additional service offerings such as transport, errands, meal services and concierge-style help.
• Clear reporting for families (app or regular updates) so you aren’t left in the dark.

There’s no means assessment for purely private care, and no income-tested care fee. You simply pay the full cost of the schedule you approve.

Lane 2: Government-supported care (Home Care Package or residential)

If you’re eligible for government financial support through a Home Care Package (HCP), the Australian Government pays a subsidy to your chosen aged care provider. You may also be asked to pay:

• A basic daily care fee (some providers charge one; this is linked to the basic age pension).
• An income-tested care fee (set by Services Australia after a means assessment of your income and assets).

In residential aged care (an aged care home), the rules are different. You’ll often see a basic daily fee, a means-tested care fee, and accommodation payments such as a refundable accommodation deposit (RAD) or a daily accommodation payment (DAP) and Additional Services Fees. More on that shortly.

Private aged care at home in Melbourne: how pricing is built

Hourly care and service fees

Private home care is usually billed by the hour. Rates vary by service type:

• Personal and clinical care: showering, mobility support, medication prompts, and nursing.
• Domestic support: cleaning, laundry, meal prep.
• Companionship and transport: appointments, shopping, social visits.

Many providers list a standard weekday rate, with higher rates for evenings, overnight, weekends and public holidays. There may be additional service fees for urgent starts or short-notice changes.

Minimum shifts, travel and call-out rules

To keep rosters sustainable, providers may set:

• A minimum visit length (for example, three hours).
• A travel or call-out fee in some areas.
• A higher rate for complex care or two-carer visits.

Tip: ask for a simple one-page schedule showing every service fee and any extras.

What “premium” looks like (and why it affects the bill)

Melbourne families paying for private care often seek:

• Consistent carers and a small, known team.
• A Service Manager who can handle complex requirements.
• A family portal with real-time rosters and photos.
• A clear plan for replacements if a carer is on leave.

These extras lift quality, and they can influence the full cost. Ask for a single per-hour figure and a breakdown of any additional services so there are no surprises.

RAD vs DAP explained (for residential aged care)

Even if you plan to keep Mum or Dad at home, it’s smart to understand aged care accommodation costs in case a short hospital stay leads to residential aged care or respite.

The core ideas

• Room price / agreed room price: each home sets a price for the room (published on My Aged Care). This is the starting point for the accommodation payment.
• Refundable accommodation deposit (RAD): a lump sum accommodation payment you can pay (in full or part). It’s government-guaranteed and refundable when the resident leaves, less any agreed deductions.
• Daily accommodation payment (DAP): a daily rent-style amount, calculated using the maximum permissible interest rate (MPIR) set by the Australian Government.
• Accommodation contribution: if your means assessment shows lower combined assets valued and combined annual income, you may pay a smaller accommodation contribution instead of the full RAD or DAP.

The DAP formula at a glance

DAP (per day) = RAD × MPIR ÷ 365

• Example (illustrative only): Room agreed room price $600,000. If the current MPIR were 8.0%, the DAP would be about $600,000 × 0.08 ÷ 365 ≈ $131.51 per day.
• You can mix and match: pay part RAD and part DAP. The DAP is then calculated on the unpaid RAD balance.

Important: the MPIR changes over time, so always check the current rate and ask the home to run the aged care calculation for your chosen mix. Providers must give you a fee advice letter outlining how they’ve worked out the numbers.

Means assessments, letters and who decides the fees

How the means assessment works

To access government-subsidised care, you’ll complete a means assessment form (often online). Services Australia looks at:

• Income and assets: savings, financial asset holdings, shares, super (subject to rules), and the family home (with important exemptions).
• Combined income and combined assets are valued for couples.
• Whether someone receives a means-tested government pension, a tested income support payment, the age pension or basic age pension.

This process leads to a fee advice letter (sometimes called a fee advice or fee advice letter outlining what you need to pay) for a Home Care Package or residential aged care fees.

Notify Services Australia of changes

Have your financial circumstances changed? A property sale, a new financial asset, or a drop in annual income? You must notify Services Australia so your care fees stay correct. A change can also affect a partner’s contributions or others’ aged care fees in the household.

Financial hardship assistance

If paying the set aged care fees would cause financial hardship, ask about financial hardship assistance. In some cases, the Australian Government can help reduce certain fees. Homes and providers can explain how to apply.

You can't put a price on your parents’ care

You came here asking, “How much does private aged care cost at home in Melbourne?” The honest answer is: it depends on hours, timing and the type of help you choose, plus whether you use government financial assistance. The good news is that with a clear weekly plan, a consistent team, and the right mix of funding, you can control the full cost and keep Mum or Dad safe and comfortable at home.

Chat with our friendly care team on 03 9267 9090 and we’ll map a weekly roster that fits your routine, and provide you with our complete fee schedule.

The finer points people ask about

What’s the difference between the income-tested care fee and the means-tested care fee?

The income-tested care fee applies to Home Care Packages. The means-tested care fee applies in residential aged care. Both are set by Services Australia from your financial details and can be subject to annual and lifetime caps.

Do we still pay a basic daily fee at home?

Some home care providers charge a basic daily care fee. Others don’t. In a home, you’ll see a basic daily fee that’s linked to the basic age pension (with a maximum basic daily fee published). Always check the provider’s pricing.

How do RAD and DAP work again?

RAD is the refundable accommodation deposit (a lump sum accommodation payment). DAP is the daily amount calculated using the maximum permissible interest rate. You can pay all RAD, all DAP, or a mix. The home must provide a fee advice letter and show the aged care calculation behind the DAP.

What if Mum receives a means-tested government pension or an income support payment?

If your parent receives a means-tested government pension or a tested income support payment, it can reduce some fees. Check the fee estimator and your fee advice letter from Services Australia.

How does the family home affect fees?

The family home is treated differently across home care vs residential aged care. Depending on who lives there, all or some of its value may be exempt from the means assessment. Always seek financial advice for your case.

Can fees change after we start?

Yes, fees can change after you start. Changes in combined income, combined assets valued, or new financial asset balances can shift what you need to pay. Always notify Services Australia of changes.

_{Last updated: September 2025}

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