The amount you pay towards the cost of your care can change over time. Your aged care fees can increase, decrease, or stay the same.
Your fees can change because of changes to your personal and financial circumstances, changes to your care needs, regular indexation and reaching annual and lifetime fee caps. You need to keep your personal and financial details up to date with Services Australia (or the Department of Veterans’ Affairs) to ensure you continue to be charged the correct fees.
How can my care fees change?
Reporting changes in your circumstances
Annual and lifetime caps
How will I find out if my fees have changed?
How can my care fees change?
Your fees can change because of changes to your personal or financial circumstances, changes to your care needs, or regular changes to government set fees.
If you receive a Home Care Package or live in an aged care home, different events can affect your fees:
Home Care Packages
Your basic daily fee can change because of
- regular indexation in line with increases to the age pension in March and September
- a change to your Home Care Package level. The maximum basic daily fee is set based on your package level.
Your income tested care fee can change because of
- changes to your personal or financial circumstances
- regular indexation of aged care rates and thresholds, and Government subsidies and supplements
- reaching the annual or lifetime cap.
If you are on pre 1 July 2014 fee arrangements, changes to your income or personal circumstances may affect your income tested fee. This is calculated by your provider. You should let your provider know if your circumstances change so they can adjust your income tested fee if needed. Your basic daily fee can also change due to regular indexation.
Read more about costs if you entered care before 1 July 2014.
Aged care homes
Your basic daily fee can change because of
- regular indexation in line with increases to the age pension in March and September.
Your means tested care fee can change because of
- changes to your personal or financial circumstances
- changes to your care needs
- regular indexation of aged care rates and thresholds, and government subsidies and supplements
- reaching the annual or lifetime cap and the fee stopping, or reaching your anniversary of starting aged care and the fee restarting.
Your accommodation contribution can change because of
- changes to your personal or financial circumstances
- regular indexation of aged care rates and thresholds, and government subsidies and supplements
- the rate of accommodation supplement applicable to your aged care home (which limits your accommodation contribution).
The room price you agreed on with your provider will not change while you live in the same room at your aged care home. You will pay this amount as an accommodation payment if you are not eligible for government assistance with your accommodation costs.
If you are on pre 1 July 2014 fee arrangements, changes to your care needs or your personal or financial circumstances can change your income tested fee. However, they won’t change your accommodation costs. Regular indexation can increase your basic daily fee and your income tested fee. The income tested fee is capped daily, and the daily cap can also change due to indexation.
Read more about costs if you entered care before 1 July 2014.
Reporting changes in your circumstances
Changes to your personal or financial circumstances can affect what you pay. If your circumstances have changed, you should tell Services Australia or the Department of Veterans’ Affairs (DVA). Doing this will ensure that you are paying the right amount.
You need to report changes to your personal and financial circumstances including:
- a change in marital status
- a protected person, such as a partner or dependent child, moving out of your home (if you are in an aged care home)
- a change in your income
- a change in your assets, including the payment of a refundable deposit for accommodation in an aged care home.
Annual and lifetime caps
There are annual and lifetime caps that apply to:
- income tested care fees in home care
- means tested care fees in an aged care home.
Once you reach a cap, you cannot be asked to pay any more of these fees.
Annual and lifetime caps are indexed on 20 March and 20 September each year.
The cap amounts that apply to you are those that are current when you reach them, not those that were current when you entered care.
Home Care Packages
Annual caps for income tested care fees
Indexation of annual caps can affect the amount of income tested care fees you can be asked to pay in a year. Currently the maximum amount is:
- $18.85 per day or $6,862.18 per year for people with income at or below $65,260.00 (single person income rate), or
- $37.70 per day or $13,724.45 per year for people with income above $65,260.00 (single person income rate).
Lifetime cap for income tested care fees
Indexation of the lifetime cap can affect the amount of income tested care fee you can be asked to pay in your lifetime. Any income tested care fee you pay while in home care will also be counted towards the annual and lifetime caps if you move into an aged care home.
Currently the maximum amount of income tested care fee and means tested care fee you pay in your lifetime is $82,347.13.
Who do these caps apply to?
Annual and lifetime caps only apply if you entered home care:
- on or after 1 July 2014, or
- before 1 July 2014 but have since opted into the post 1 July 2014 fee arrangements.
Read more about costs if you received a Home Care Package before 1 July 2014.
Aged care homes
Annual cap for means tested care fees
Indexation of the annual cap can affect the amount of means tested care fees you pay in a year. Currently the maximum amount an aged care home can ask you to pay in a year is $34,311.23.
The means tested care fee is calculated daily. It is based on your means assessment and your care costs. You pay this fee for each day you are in care until you reach the annual cap (or lifetime cap). This means the length of time it takes a person to reach the annual cap will vary.
Lifetime cap for means tested care fees
Indexation of the lifetime cap can affect the amount of means-tested care fees you pay in your lifetime. Any income tested care fee you pay while in home care will count towards the annual and lifetime caps if you move into an aged care home.
Currently the maximum amount of income tested care fee and means tested care fee you may be asked to pay in your lifetime is $82,347.13.
Who do these caps apply to?
Annual and lifetime caps only apply if you entered an aged care home:
- on or after 1 July 2014, or
- before 1 July 2014 but have since opted into the post 1 July 2014 fee arrangements.
Read more about costs if you entered an aged care home before 1 July 2014.
Find the current rates on the Schedule of Fees and Charges for Residential and Home Care.
What if I've already met the caps?
Annual caps
You may have already met the annual cap when it changes. If this happens, you will not need to pay any more income tested care fees or means-tested care fees for that year. You will start paying again on the next anniversary of when you first started receiving aged care.
If you have not yet reached the annual cap, the new indexed annual cap will apply to you.
Lifetime cap
If you have already met the lifetime cap when it changes, you cannot be asked to pay any more income tested care fees or means tested care fees.
However, if you have not yet reached the cap, the new indexed cap will apply to you.
How will I find out if my fees have changed?
If your fees change, Services Australia will let you (and/or your nominee, if you have one) and your service provider know by letter. They will also write to you and your service provider once you have reached the annual and lifetime caps.
Review schedule
Services Australia checks if you are paying the correct fees during their regular reviews of aged care fees. These reviews generally occur once a month.
They will check if your care needs or personal or financial circumstances have changed and will update your fees accordingly. They will also update your fees in line with regular changes to government set fees in March, July and September.
What happens if my fees change?
If your income tested care fee or means tested care fee changes, Services Australia will send you a letter to let you know. The date your fees changed will be included in the letter. If the only fee that changes for you is the basic daily fee, your provider will let you know.
If the date your fees changed in is in the past and you have overpaid your fees, your provider will refund you the overpaid amount.
Refund amounts advised in letters from Services Australia are only valid if you have paid the fee amounts previously advised by Services Australia. If you paid a different amount, your provider may need to adjust the refund amount. Your provider can explain this to you.
Home Care Package and aged care home costs and fees
For more information on the costs and fees associated with Home Care Packages and aged care homes, visit these pages:
Home Care Package costs and fees
Aged care home costs and fees