Extra Service Fees

What Are Extra Service Fees?

In Commonwealth-regulated Residential Aged Care in Australia, some aged care facilities have special approval to offer residents “Extra Service” status. If you choose to live in an Extra Service room or wing, you may be required to pay an Extra Service Fee (ESF) on top of your other standard fees and charges.

The Extra Service Fee covers a higher standard of hotel-type services — think upgraded accommodation, higher-quality meals, or enhanced lifestyle extras. It does not relate to clinical or personal care — those are covered by the Basic Daily Care Fee and any Means Tested Care Fee you may pay.

Why Are Extra Service Fees Charged?

Many older Australians and their families want more choice and flexibility in residential care. The Extra Service option allows providers to offer higher standards of hotel-type services for those who want (and can afford) them. This is similar to paying for a premium room in a hotel — you pay extra for a higher level of comfort, amenities and non-care services.

It’s important to know that Extra Service Fees are entirely optional. You do not have to choose an Extra Service room if you don’t want to or can’t afford to.

Who Pays the Extra Service Fee?

Only residents who choose to live in an Extra Service room or wing pay the Extra Service Fee. If you choose a standard room that doesn’t have Extra Service status, you won’t pay an ESF.

Whether or not you pay the ESF does not affect your eligibility for standard aged care services, which remain regulated and subsidised by the Australian Government for everyone who qualifies.

How Does a Facility Become an Extra Service Provider?

To charge an Extra Service Fee, an aged care provider must be formally approved by the Australian Government to offer Extra Service status for specific rooms. This status is granted through an Extra Service Approval process.

Once approved, the provider must:

• Offer a higher standard of accommodation and/or hotel-type services than standard care.
• Charge Extra Service Fees within government guidelines and clearly publish all fees.
• Ensure residents fully understand what they’re paying for and what’s included.

If a facility has multiple Extra Service rooms, they must maintain the approved standards for each one. This ensures consistency and fairness for residents paying the additional fee.

What Do Extra Service Fees Cover?

Each Extra Service Agreement may vary, but typical extras can include:

• Higher standard of furnishings, bedding, or décor
• Private ensuite bathrooms in all rooms
• Enhanced meal options, including à la carte or restaurant-style dining
• Choice of beverages, such as wine or other drinks with meals
• Daily newspapers or magazines delivered to your room
• Access to special recreational activities, outings or entertainment
• Additional personal touches like a minibar, special toiletries, or room service

However, the Extra Service Fee cannot be used to charge for your personal or clinical care needs — those are regulated under the Aged Care Act and covered by other fees. Always check your Resident Agreement to confirm exactly what the ESF includes.

How Much Is the Extra Service Fee?

There is no single standard amount. Each provider sets its own Extra Service Fee for each approved Extra Service room or wing. Fees vary widely depending on the standard of services offered, location, and the market for premium aged care in your area.

Providers must:

• Disclose the full ESF amount in writing before you sign your Resident Agreement.
• Clearly explain what services and benefits you’ll receive for the ESF.
• Provide you with a written schedule of fees, including any future increases (e.g., for inflation or cost of service improvements).

Providers cannot charge Extra Service Fees for standard services that should be included in the Basic Daily Care Fee or covered by your Means Tested Care Fee — doing so would be illegal under the Aged Care Act.

Example: How the Extra Service Fee Works

Let’s say Jane chooses an Extra Service room at an inner-city aged care home. Her total fees might include:

• Basic Daily Care Fee: $61.96/day (example only — actual amounts change each March and September).
• Means Tested Care Fee: Calculated based on her assets and income (not everyone pays this).
• Accommodation Payment: Either a Refundable Accommodation Deposit (RAD), Daily Accommodation Payment (DAP), or a combination.
• Extra Service Fee: $50/day for premium furnishings, wine with meals, gourmet menu, and in-room newspapers.

Jane’s total daily costs reflect all of these combined, so she needs to plan her budget accordingly. If she moves out, the ESF stops immediately — unlike the RAD, which is refundable minus agreed deductions.

Are Extra Service Fees Refundable?

No. The Extra Service Fee is a daily payment for the enhanced services you receive while living in the Extra Service room. It is not refundable when you leave or pass away. Only the Accommodation Payment (if you paid a lump sum RAD) is refundable.

Can Extra Service Fees Increase?

Yes — providers can increase ESFs over time, for example, due to rising costs or inflation. However:

• Fee increases must be consistent with the terms of your Resident Agreement.
• You must be given advance notice in writing.
• You cannot be charged new Extra Service Fees without your agreement — you must choose and sign for the Extra Service status yourself.

Are You Required to Choose Extra Service?

No — it’s always your choice. Some aged care homes only offer Extra Service rooms, but many have both Extra Service and standard rooms. You can compare your options to decide if paying the additional ESF fits your lifestyle and budget.

If you don’t feel you need the added hotel-style extras, you can choose a standard room with no ESF and still receive the same quality of personal and clinical care.

What Happens If You Can’t Afford the ESF?

If you can’t afford or no longer want to pay the Extra Service Fee, talk to your provider. Depending on room availability and your Resident Agreement, you may be able to move to a standard room without the Extra Service status.

However, not all providers will have standard rooms available immediately. It’s a good idea to clarify these options before you sign your contract.

Your Rights and Protections

As a resident in a Commonwealth-regulated aged care facility, you have the right to:

• Clear, accurate information about any Extra Service Fees before you sign up.
• A written Resident Agreement that outlines exactly what you’re paying for and how much it costs.
• Make an informed decision — no one can force you to choose an Extra Service room.
• Complain to your provider if you believe you are being charged unfairly.
• Contact the Aged Care Quality and Safety Commission if your complaint is not resolved.

How to Decide If Extra Service Is Right for You

Here are some questions to consider:

• Do you value premium furnishings, upgraded meals, or other hotel-style extras?
• Can you comfortably afford the daily Extra Service Fee long term?
• Will the added extras truly enhance your lifestyle or wellbeing?
• Is there flexibility to switch to a standard room later if your circumstances change?
• Do you have a clear, written breakdown of what the ESF covers — and what it doesn’t?

It’s always wise to compare several homes and their fee structures. It is easy to find similar quality of life in a well-run standard facility that doesn’t charge an ESF.

Where to Get More Help

Choosing the right residential aged care option can be complex. Here’s where to start:

• Visit My Aged Care for detailed information on fees, resident rights, and approved Extra Service homes in your area.
• Speak to a qualified aged care financial adviser for help understanding how the ESF may affect your budget or pension.
• Ask the provider for a clear written statement of what’s included in the ESF and get all promises in writing.
• Contact the Aged Care Quality and Safety Commission if you feel your rights are being breached or you have unresolved complaints.

Key Takeaways

• Extra Service Fees are daily charges for optional hotel-type services — not your care or accommodation costs.
• Only approved facilities can offer Extra Service rooms, and they must maintain higher standards.
• You do not have to choose an Extra Service room — it’s your choice.
• Always get written confirmation of what you’re paying for and how much you’ll pay over time.
• Keep in mind that ESFs are not refundable — they are “pay as you go” for the premium extras you receive.

Residential aged care can be a big step. Taking time to understand your options, fees, and rights will help you feel confident and comfortable in your new home.