Questions about aged care costs

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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.

Read more about aged care costs

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:

  • a basic daily fee, or
  • a basic daily fee and accommodation costs, or
  • a basic daily fee and a means tested care fee and accommodation costs.

Depending on your means assessment, the government will contribute towards some or all of your fees and accommodation costs.

Read more about aged care home costs and fees

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.

Read more about short-term care fees

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:

  • a basic daily fee, or
  • a basic daily fee and an income tested care fee.

There may also be additional fees ifyou 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.

Read more about home care fees

You are expected to contribute towards the cost of your care, if you can afford to. 

A few things to keep in mind are:

  • Service providers charge different amounts for their services.
  • The Australian Government funds providers to keep costs affordable, so you won’t be asked to cover the full cost of services.
  • If you can’t afford to pay a contribution, you can still get help. Talk to your provider.

Read more about CHSP fees

Means assessment for aged care homes

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A means assessment is an assessment of your income and assets undertaken by the government. It determines if you need to pay the means tested care fee and if the Australian Government will contribute to your accommodation costs.

Read more about means assessments

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.

Read more about the means-tested care fee

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.

Read more about accommodation costs

No. You should use the income and means assessment tool to find out if you need to.

Use the tool

The treatment of income is different for aged care and pension purposes compared to taxation purposes, and this assessment includes some things as income that you don’t submit on your tax return.

Download the income and assets checklist

Services Australia does use the information you have provided for pension purposes when they assess your income and assets for aged care. However, sometimes additional information is required to complete an aged care means assessment, like details about your family home. You should use the income and means assessment tool to find out if you need to provide additional information.

Use the tool

Yes, you can. If you do, you will receive a fee advice letter that tells you 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.

Read more about means assessments

The means assessment can include but is not limited to income from:

  • income support payments such as age pension, a service pension, or an income support supplement
  • deemed (not actual) income from financial investments
  • war widow/widower pensions and some disability pensions
  • net income from rental properties
  • net income from businesses, including farms
  • superannuation and overseas pensions, and income from income stream products such as annuities and allocated pensions
  • family trust distributions or dividends from private company shares
  • deemed income from excess gifting

The My Aged Care income and assets checklist has a detailed list of what's included in a means assessment.

Download the checklist

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: 

  • deposits with financial institutions, such as bank accounts, term deposits, and bonds
  • loans and debentures
  • managed investments
  • listed shares and securities
  • shares in unlisted public companies
  • managed investments
  • cash, gold, and other bullion
  • account-based income streams from 1 January 2015

The My Aged Care income and assets checklist has a detailed list of what's included in a means assessment.

Download the checklist

All of your assets are considered in the means assessment, but special rules apply in some situations. Your assets include financial investments in bank accounts, cash, shares, gold, and other investments. They also include other assets such as household contents and personal effects, superannuation balances, investment property or business interests.

Download the income and assets checklist

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 to the assessed value of the family home on the income and means assessment page.

Read more 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.

Download the income and assets checklist

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.

Download the income and assets checklist

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. The cap amount that applies is the cap current at the time it is reached.

Read more about changes to aged care fees, annual and lifetime caps

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:

  • changes to your care needs
  • changes to your financial circumstances
  • changes to your personal circumstances
  • indexation of aged care fees and thresholds
  • reaching an annual or lifetime cap for the means tested care fee
  • your aged care home becoming significantly refurbished.

Read more about changes to aged care home fees

Income assessment for Home Care Packages

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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.

Read more about income assessments

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.

Read more about the income-tested care fee

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.

Read more about changes to aged care fees

No. You should use the income and means assessment tool to find out if you need to.

Use the tool

The treatment of income is different for aged care and pension purposes compared to taxation purposes, and this assessment includes some things as income that you don’t submit on your tax return.

Download the income and assets checklist

Yes, you will receive a fee advice letter that tells you 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.

Read more about income assessments

The assessment can include, but is not limited to income from:

  • income support payments such as age pension, a service pension, or an income support supplement
  • deemed (not actual) income from financial investments
  • war widow/widower pensions and some disability pensions
  • net income from rental properties
  • net income from businesses, including farms
  • superannuation and overseas pensions, and income from income stream products such as annuities and allocated pensions
  • family trust distributions or dividends from private company shares
  • deemed income from excess gifting

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.

Download the checklist

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: 

  • deposits with financial institutions, such as bank accounts, term deposits and bonds
  • loans and debentures
  • managed investments
  • listed shares and securities
  • shares in unlisted public companies
  • managed investments
  • cash, gold, and other bullion
  • account-based income streams from 1 January 2015.

Download the income and assets checklist

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.

Download the income and assets checklist

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. The cap amount that applies is the cap current at the time it is reached.

Read more about caps

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