Income and means assessments

If you’re applying for a Home Care Package, you may have to pay an income tested care fee. To work out if you need to pay this fee, and how much it will be, you need your income assessed.

For most people the income assessment is done by Services Australia. However, if you receive a means tested payment from the Department of Veterans’ Affairs (DVA), your assessment will be done by DVA.

Note: You can get your income assessed at any time, even before you enter care, though the outcome is only valid for 120 days. If you don’t enter care during this time, you will need to complete another assessment.

What happens if I’m part of a couple?
Half your combined income is included in your assessment, regardless of who earns the income. You may still be considered a couple if you are living apart for health-related reasons.

What happens after the assessment?
Once your assessment is complete, Services Australia will send you a fee advice letter that tells you if you need to pay an income tested care fee.

If you get your income assessed before you start a Home Care Package, your fee advice letter is valid for 120 days. If your circumstances change before your package starts, you will need to contact Services Australia (or DVA) to see if your assessment needs to be updated. Changes to circumstances could include a change in your marital status or your finances.

If you're moving into an aged care home for permanent care, you may have to pay a means tested care fee and accommodation costs. You will need your income and assets (means) assessed to determine if you need to pay a means tested care fee, how much it will be, and if the Australian Government will contribute to your accommodation costs.

Everyone who moves into an aged care home negotiates a room price before moving in. The means assessment determines if you will have to pay:

• the agreed room price,
• an accommodation contribution based on your means, or
• no accommodation costs.

For most people the means assessment is done by Services Australia. However, if you receive a means tested payment from the Department of Veterans’ Affairs (DVA), your assessment will be done by DVA.

Note: You can get your means assessed at any time, even before you enter care though the outcome is only valid for 120 days. If you don’t enter care during this time, you will need to complete another assessment.

What happens if I’m part of a couple?
Half your combined income and assets is included in the assessment, regardless of who earns the income or whose name the asset is held in. You may still be considered a couple if you are living apart for health-related reasons.

What happens after the assessment?

Once your assessment is complete, Services Australia will send you a fee advice letter that tells you if you need to pay a means tested care fee and/or accommodation costs.

If you get your means assessed before moving into your aged care home, your fee advice letter is valid for 120 days. If your personal or financial circumstances change before you move in, you will need to contact Services Australia (or DVA) to see if your assessment needs to be updated. Changes to circumstances could include a change in your marital status, selling your home, or paying a lump sum towards your aged care accommodation.

You may need to fill out an income or means assessment form to provide the financial details that Services Australia or DVA need to complete your assessment.

All these forms are managed by Services Australia. They manage payments for a number of Australian government agencies, and they are a separate organisation to My Aged Care.

If you have questions or concerns about the forms, you can call Services Australia on 1800 227 475 or visit a service centre.

There are three forms; the one you may have to fill depends on your situation:

• SA456: This is the Home Care Package Calculation of your cost of care form. Complete this form if you need an income assessment.
• SA457: This is the Residential Aged Care Calculation of your costs of care form. Complete this form if you need a means assessment and you don’t receive a means tested income support payment.
• SA485: This is the Residential Aged Care Property details for Centrelink and DVA customers form. Complete this form if you need a means assessment and you’re on a means tested income support payment and you own or part own your own home.

To find out if you need to fill out an income or means assessment form, you can use the tool further down the page.

This applies both to income and means assessments. Assessable income includes, but is not limited to:  

• income support payments from the Australian Government such as the age pension, a service pension, or an income support supplement
• deemed (not actual) income from financial assets
• net income from rental property
• war widow or widower pensions and some disability pensions
• 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 assessment uses what’s called a deemed rate of income for your financial assets, so the actual income earned on an asset is not counted. This means that if you earn more than the deemed income, the extra amount is ignored.

The deemed rate applies to, but is not limited to:

• bank, building society, and credit union accounts
• cash
• term deposits
• cheque accounts
• friendly society bonds
• managed investments
• listed shares and securities
• loans and debentures
• shares in unlisted public companies
• gold and other bullion
• account-based income streams from 1 January 2015.

Assets not deemed to be earning income include: 

• your home or its contents
• cars, boats, and caravans
• antiques, stamp or coin collections
• standard life insurance policies
• holiday homes, farms, or other real estate
• accommodation bonds, refundable deposits.

Current deeming rates are provided on the Schedule of Residential Fees and Charges.

This applies only to means assessments. All your assets are considered, including financial assets, but special rules apply in some situations.

Financial assets include but are not limited to:

• bank, building society, and credit union accounts
• cash
• term deposits
• cheque accounts
• friendly society bonds
• managed investments
• listed shares and securities
• loans and debentures
• shares in unlisted public companies
• gold and other bullion
• gifted assets: gifted amounts above $10,000 in the last financial year or above $30,000 in the last five financial years (or amounts above $10,000 in any of those financial years) are included as a financial asset. 

Other assets include but are not limited to:

• household contents and personal effects (these are typically valued at $10,000)
• foreign assets including investments, business interests, and real estate
• investment property
• special collections such as stamps, art works, or antiques
• superannuation balances
• private trusts, family trusts, and private companies
• refundable deposits paid for accommodation in an aged care home.

This applies only to means assessments. Part of the value of your family home may be counted in your assessment.

If you keep your family home, a capped amount of $206,663.20 (as at 20 March 2025) or the net market value of your house (if lower) is included in your means assessment. If you are part of a couple, each partner is considered to own half of the home. So half of the net market value or the capped value is included as an asset – whichever is lower. The cap is applied to each half of the home.

Your home won't be counted as an asset if it is occupied by a protected person. A protected person includes: 

• your partner or dependent child
• a carer eligible for an Australian Government income support payment who has been living in the home with you for at least two years
• a close relative who is eligible for an Australian Government income support payment who has been living in the home with you for at least five years.

If you don’t think the outcome of your income or means assessment is correct, you can ask Services Australia (or DVA if relevant) to review their decision. They will follow up with you on the next steps. To discuss your assessment, call Services Australia on 1800 227 475 or DVA on 1800 838 372.