Aged Care Glossary

The government team that assesses whether a person is eligible for residential aged care.

An ACAT (Aged Care Assessment Team) is a multidisciplinary team of health professionals — usually including a nurse, social worker, and doctor — who assess a person's care needs. The assessment determines eligibility for residential aged care, home care packages, and transition care. It is conducted face-to-face, typically at home or in hospital, and usually takes 1–2 hours. Approval is valid for 12 months.

The independent government body that regulates aged care quality and handles complaints.

The Aged Care Quality and Safety Commission (ACQSC) is the independent Commonwealth regulator of residential aged care, home care, and flexible care. It conducts inspections, registers and assesses providers, handles complaints from residents and families, and publishes quality ratings and compliance information on My Aged Care.

The current funding model that determines how much government subsidy a resident receives based on clinical need.

The Australian National Aged Care Classification (AN-ACC) replaced the ACFI funding model on 1 October 2022. It classifies residents into one of 13 clinical classes based on their assessed care needs and determines the level of Australian Government subsidy paid to the provider. A higher AN-ACC class means more government funding to deliver the appropriate level of care.

A standard daily care fee paid by all residential aged care residents, set at 85% of the single age pension.

The Basic Daily Fee (BAS) is the standard daily contribution to care costs that all residential aged care residents pay, regardless of income or assets. It is set by the government at 85% of the single Age Pension rate and is adjusted twice yearly (March and September). As of 2026, it is approximately $63.57 per day.

Entry-level government-funded support at home — meals, cleaning, transport, and personal care.

The Commonwealth Home Support Programme (CHSP) provides entry-level support services to help older Australians live independently at home. Services include domestic assistance, personal care, meals, transport, and social support. CHSP is assessed by the Regional Assessment Service (RAS) and is appropriate for people with lower-level care needs. It is being progressively absorbed into the new Support at Home programme from July 2025.

A daily accommodation fee paid by low-means residents, set by the government (not the facility).

The Daily Accommodation Contribution (DAC) applies to residents who have been assessed as having low means. Unlike the RAD/DAP which is set by the facility, the DAC is a government-set daily charge, partially subsidised. The government pays an accommodation supplement to the provider to cover the difference between the DAC and the facility's published price.

The daily rental equivalent of the RAD — paid instead of (or alongside) a lump-sum deposit.

A Daily Accommodation Payment (DAP) is the daily equivalent of the Refundable Accommodation Deposit (RAD). Residents who cannot or choose not to pay the full lump sum can pay the DAP instead. The DAP is calculated by dividing the RAD price by 365 and multiplying by the Maximum Permissible Interest Rate (MPIR). Unlike the RAD, DAP payments are not refunded.

A legal document authorising a nominated person to make financial and legal decisions on someone's behalf.

An Enduring Power of Attorney (POA) gives a trusted person (the attorney) legal authority to manage financial and property decisions on behalf of another person (the principal) — including during periods when the principal cannot make their own decisions. It is separate from a medical power of attorney or guardianship. Having an Enduring POA in place before entering aged care simplifies signing agreements and managing financial assessments.

A government-funded package of care services to help people with higher-level needs stay at home.

Home Care Packages (HCP) provide government-funded care for people with more complex needs who want to remain living at home. There are four package levels (1–4) ranging from basic to high-level care, funded at $10,588 to $61,440 per year (2024–25 rates). Packages are managed by an approved provider. Wait times can be 3–18 months depending on level. Being absorbed into Support at Home from July 2025.

A means-tested daily fee covering accommodation and hotel-like services (meals, laundry, cleaning) — capped at $22.15/day.

The Hotelling Supplement Contribution (HSC) is a daily fee payable under the new Aged Care Act (from 1 November 2025) covering hotel-style residential services such as meals, laundry, and cleaning. It is means-tested and capped at $22.15 per day. Unlike RAD/DAP, the HSC is not refundable. It replaced the accommodation component of the old Means-Tested Care Fee.

The government-set interest rate used to convert a RAD lump sum into a daily payment (DAP).

The Maximum Permissible Interest Rate (MPIR) is set quarterly by the Australian Government and is used to calculate the Daily Accommodation Payment (DAP). The formula is: DAP = RAD × MPIR ÷ 365. As of 2026, the MPIR is 8.38% per annum. It is also the rate at which unpaid RADs accrue interest if a provider delays refund beyond the required timeframe.

A financial assessment by Services Australia that calculates how much a resident pays in care fees and accommodation.

The means assessment is conducted by Services Australia (formerly Centrelink) to determine the Means Tested Care Fee and accommodation contribution for residential aged care. It assesses both income (pensions, investments, rent) and assets (property, savings, super). The result is used to set personalised fees and is separate from the ACAT clinical assessment.

An additional care fee calculated from your income and assets — on top of the basic daily fee.

The Means Tested Care Fee (MTCF) is an income- and assets-tested daily fee paid toward the cost of care in residential aged care. It is determined by Services Australia's means assessment and varies from $0 to a government-set annual cap ($33,309.15 for 2025–26) and lifetime cap ($79,942.64). Residents with fewer assets and lower income pay a lower MTCF or none at all.

The Australian Government's central entry point for aged care services — the first call to make.

My Aged Care (myagedcare.gov.au / 1800 200 422) is the federal government's entry point for accessing aged care services in Australia. Registering with My Aged Care is the first step in the process. It maintains a record of a person's assessments, approved care levels, and referrals to providers. The portal also allows families to search for providers and track their journey.

An income- and assets-tested daily contribution toward personal care services, replacing the Means-Tested Care Fee from 1 Nov 2025.

The Non-Clinical Care Contribution (NCCC) replaced the Means-Tested Care Fee (MTCF) for people entering residential aged care from 1 November 2025 under the new Aged Care Act. It is assessed against income and assets by Services Australia and covers personal care services. The NCCC has a daily cap and a lifetime cap of $130,000 (or 4 years of fees, whichever is lower).

A lump-sum payment for accommodation in residential aged care, fully refunded when a resident leaves.

A Refundable Accommodation Deposit (RAD) is a lump-sum payment made to a residential aged care provider for accommodation. It is fully refundable — with interest — when the resident leaves the facility or passes away. Residents can pay the RAD in full, pay a daily equivalent (DAP), or split between the two. The government guarantees RAD refunds if a provider becomes insolvent.

A government-contracted service that does a phone screening to determine if a full ACAT assessment is needed.

The Regional Assessment Service (RAS) conducts initial phone screenings for people who contact My Aged Care. They assess whether lower-level Commonwealth Home Support Programme (CHSP) services are appropriate, or whether a referral to ACAT is needed for higher-level care. RAS assessors are typically allied health professionals or social workers.

The binding contract between a resident and an aged care facility covering all fees, services, and rights.

The Resident Agreement (sometimes called the Residential Aged Care Agreement) is the legally binding contract signed before a person moves into a residential aged care facility. It covers all fees payable, services included, payment method for accommodation (RAD or DAP), notice periods, and the resident's rights. Residents have the right to seek independent legal advice before signing. The agreement must comply with government standards and cannot override a resident's legal rights.

The Services Australia form used to assess income and assets for residential aged care fee calculations.

Form SA457 is submitted to Services Australia to trigger the means assessment for residential aged care. It requests details of all income sources and assets — bank accounts, superannuation, property, investments, and trusts. Completing it accurately is important: underreporting assets can lead to debt recovery, while overreporting may result in higher fees than necessary.

A temporary stay in a residential aged care facility — up to 63 days per year — used as a trial or bridge.

Residential respite care allows a person to stay in an aged care home temporarily — up to 63 government-subsidised days per year. It can be used to give family carers a break, as a trial before permanent placement, or as a bridge after a hospital stay. Respite residents pay the Basic Daily Fee but are not subject to the full means assessment. ACAT approval is required.

The federal agency (formerly Centrelink) that processes aged care means assessments and issues fee letters.

Services Australia is the Australian Government agency responsible for delivering social support payments and services, including aged care financial assessments. Formerly known as Centrelink, it processes the SA457 means assessment, determines the Means Tested Care Fee, issues the fee letter, and administers the Age Pension and other payments that interact with aged care costs.

The new government home care programme replacing CHSP and Home Care Packages from July 2025.

Support at Home (SAH) is the new Australian Government home care programme that replaced the Commonwealth Home Support Programme (CHSP) and Home Care Packages (HCP) from 1 July 2025 under the new Aged Care Act. It uses a classification system with eight support levels and provides flexible budgets for tailored care. Existing CHSP and HCP recipients transitioned automatically.