Room prices: maximums, what's typical near you, and whether they can be negotiated

Room prices in aged care homes are often quoted as a single large figure, like a house price. That number can come as a shock. This guide explains what limits apply to room prices, how to see what homes near you are charging, and whether there's room to ask for less.

Every room has a published top price

Each aged care home must publish the most it will charge for each type of room. You'll find these prices on My Aged Care's Find a provider tool, and often on the home's own website and brochures.

The home can't charge more than its published price for that room. It can agree to a lower one.

The government maximum

There's also a government-set maximum room price, currently $789,686. A home that wants to charge more than that for a room needs approval from the Independent Health and Aged Care Pricing Authority. The maximum is updated each 1 July in line with prices, so check the current figure.

Many rooms are priced well below the government maximum.

What's typical near you

Room prices vary a lot between homes, suburbs, cities and country areas, and between room types. Rooms in the major cities tend to cost more than in regional and remote areas. Government figures also show that the prices residents actually agree are, on average, lower than the published prices.

We don't yet show local averages, because no official figures by suburb or town were found. The most reliable way to see current prices near you is to search Find a provider for your area and compare homes directly.

When comparing rooms, look at:

• the room itself: single or shared, with its own bathroom or not, and its size;
• the daily cost: a room price can also be paid by the day. The daily amount is the room price, times the current interest rate of 8.51%, divided by 365;
• any higher everyday living fee: this pays for optional extras, such as pay TV or a wider menu. It's charged on top of the room price, and a home can't make extras a condition of giving your parent a room. (The older "extra service" fees can't be started any more and end on 31 October 2026.)

Can the price be negotiated?

Yes. The published price is a ceiling, not a fixed price. You and the home can agree on a lower one.

It's reasonable to ask, especially if:

• the room is smaller, shared or less well placed than others at the same price;
• the room has been empty for some time;
• the home has similar rooms listed at different prices.

Once a price is agreed, it's written into the accommodation agreement before your parent moves in. It then stays the same while your parent stays in that room, even if the home later changes its published prices. If your parent chooses to move to a different room, a new price is agreed for that room. If the home moves your parent for medical reasons or for repairs, the price can't go up. (If the room is paid by the day, the daily amount can still rise with indexation. See why the daily payment goes up.)

If you'd like support with the conversation, a free aged care advocate from OPAN can help.

If your parent qualifies for help with the room

People on low means get government help with the cost of their room. A room price is still agreed, but what your parent pays is set by their means assessment, not by the full price. Our guide to aged care fees line by line explains how that works.

Changes being considered

The government has announced changes after an independent review of accommodation pricing. These include new levels of government help with the room from 20 March 2027: Not yet checked the maximum accommodation supplement is due to be $78.73 a day, and the government will pay $53.09 a day to homes that aren't newly built or significantly refurbished. The government has also said it will bring in a new way of turning a room price into a daily amount by 1 July 2027. That's an announcement only, and it needs a new law first. We'll update this guide when the details are confirmed.

Weighing it up

The Aged Care Costs calculator gives an estimate of the fees, with the home counted as it is today, and compares the ways of paying for the room. You enter the room price you've been quoted.

Before agreeing to a room price or a way of paying, consider talking it through with a licensed financial adviser who specialises in aged care.

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