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The cost of aged care services varies from person to person. It depends on the care you are eligible for, the aged care provider you choose, and your financial situation.
While the Australian Government may contribute to the cost of your care, you will also be asked to contribute if you can afford to.
You are expected to contribute towards the cost of your care, if you can afford to.
A few things to keep in mind are:
You’re expected to contribute to the cost of your care if you can afford it.
The cost of a Home Care Package is paid, in part, through a contribution by the Australian Government. You will also be asked to contribute to the cost of your care if you can afford to.
You may have to pay:
There may also be additional fees if you agree to pay for extra care and services that aren’t covered by your Home Care Package. These fees form part of your package budget and must be included in your Home Care Agreement.
Short-term care services include short-term restorative care, transition care, and respite care.
You may have to pay a daily fee, which will vary based on the type and level of care and services you receive. The maximum amount you could be asked to pay depends on whether you receive care while living at home or care in a residential setting.
There are a variety of aged care homes. What you pay depends on your needs, your financial circumstances, and the aged care home you choose.
You may have to pay:
Depending on your means assessment, the government will contribute towards some or all of your fees and accommodation costs.
An income assessment works out if you have to pay an income-tested care fee for your Home Care Package. It is undertaken by the government and is based on your income only.
No. You should use the income and means assessment tool to find out if you need to.
The income-tested care fee is a contribution that some people pay if they receive a Home Care Package. Not everyone has to pay an income-tested care fee. It’s based on an individual’s income.
If you find out that you do need to pay an income-tested fee, there is a cap on what you can be asked to pay – both over a year and over your time in aged care. Once these caps are reached, you cannot be asked to pay any more income-tested care fees.
No. What you pay towards your care is determined based on your income assessment, so this fee can change if your circumstances change. For example, this might be due to a change in your financial circumstances, personal circumstances, your care needs, or indexation.
Yes, you will receive a pre-commencement letter that advises if you need to pay an income-tested care fee. It is valid for 120 days. If your circumstances change (for example, a change in your marital status or your finances) before you enter a Home Care Package, you will need to contact Services Australia (or DVA) to see if your assessment needs to be updated.
The assessment can include, but is not limited to income from:
It does not include any of your assets, including your family home.
The My Aged Care income and assets checklist has a detailed list of what's included in an income assessment.
The treatment of income is different for aged care and pension purposes, and this assessment includes some things as income that you don’t submit on your tax return.
No, you don’t need to include the actual interest you received. Some financial investments are ‘deemed’ as earning income, no matter what income they actually earn. Deeming can be applied, but is not limited, to:
If you are part of a couple, half of the combined income of you and your partner will be included in your income assessment. This happens regardless of who earns the income.
A means assessment determines if you need to pay the means-tested care fee and if the Australian Government will contribute to your accommodation costs. It is undertaken by the government and is worked out based on an assessment of your income and assets.
No. You should use the income and means assessment tool to find out if you need to.
The means-tested care fee is a contribution that some people may be asked to pay towards their personal and clinical care. Not everyone will have to pay a means-tested care fee. It’s based on an individual’s means assessment.
Yes. If you find out that you do need to pay a means-tested fee, there is a cap on what you can be asked to pay – both over a year and over your time in aged care. Once these caps are reached, you cannot be asked to pay any more means-tested care fees.
Read more about changes to aged care fees, annual and lifetime caps
If you can afford it, you are expected to pay for your room. However, help with some or all of the accommodation costs is available to those who need it. Everyone who moves into an aged care home negotiates a room price before moving in. A means assessment determines if you will have to pay the agreed room price.
Yes, you can. If you do, you will receive a pre-commencement letter that advises if you need to pay a means-tested care fee or accommodation costs. It is valid for 120 days. If your circumstances change (for example, a change in your marital status or your finances) before you move in, you will need to contact Services Australia (or DVA) to see if your assessment needs to be updated.
The means assessment can include but is not limited to income from:
The My Aged Care income and assets checklist has a detailed list of what's included in a means assessment.
No, you don’t need to include interest you received. Some financial investments are ‘deemed’ as earning income, no matter what income they actually earn. Deeming can be applied to but not limited to:
The My Aged Care income and assets checklist has a detailed list of what's included in a means assessment.
The treatment of income is different for aged care and pension purposes, and this assessment includes some things as income that you don’t submit on your tax return.
All of your assets are considered in the means assessment, but special rules apply in some situations. This includes financial investments in bank accounts, cash, shares, gold, and other investments. It also includes other assets such as household contents and personal effects, superannuation balances, investment property or business interests.
If you are part of a couple, half of your combined income and assets will be included in your means assessment. This happens regardless of who earns the income or whose name the asset is held in.
In some cases, part of the value of your family home may be included as an asset. This is determined through your means assessment. Find out about the different circumstances and the cap that applies if it is considered an asset, on the income and means assessment page.
Yes, if you have gifted assets over $10,000 in a single year or $30,000 in total over a rolling period of five years, these amounts will be included in your assessment.
Yes, your fees can change. Not all aged care fees are fixed at the time you enter an aged care home. Some fees will change while you receive care because of: