Aged Care Fees Indexing March 20 2023

In recognition of the rising costs associated with aged care, Services Australia has adjusted rates and thresholds – effective from 20 March. This includes a 3.7% increase in basic daily fee (residential care) to $58.98, as well as an improvement on other capped values such as home ($193,219.20), annual cap for residential care ($31,706 .83), and lifetime cap at $76 096 .50 respectively.

This is a normal part of the process and happens once in March and once in September, although the increase is higher than usual due to inflation.  

The good news is the same rate of increase will be applied to age pensions and DVA pensions as the basic daily fee is calculated at 85% of the full rate single age pension.  

This increase in the MPIR pushes the accommodation costs for those who do not qualify as low-means, and who pay the accommodation as a daily accommodation payment (DAP) to nearly double that of what the daily accommodation payment would have been when it was 4% in 2022.