3.4.2 Basic Fee

All residents pay the basic fee, also known as resident contribution (the basic fee is also payable by those subject to post 1 July 2014 rules see topic 3.2.2).

Basic fees are indexed in March and September each year. Aged care providers and residents are advised by the DHS of the actual rates that apply to each resident.

DVA pays the basic fee for Australian former prisoners of war.

3.4.2.1 Rates of Basic Fee (Continuing care recipients)

The standard resident contribution is 85 per cent of the basic age pension but there are exceptions which fall into two groups: protected and non-standard. (From 20 March 2013, the further group of phased resident status ceased to exist.) The exception groups are in place to ensure there is an equitable pension increase flow-on to residents and aged care providers following the 2009 Pension reform changes. If a resident’s circumstances change on or after 20 September 2009 and the criteria are no longer met, the standard resident contribution rate would apply.