How does entering aged care affect my Age Pension?
Receiving Support at Home does not normally reduce your Age Pension. Your pension continues under the ordinary income and assets tests, while the same financial information may be used separately to calculate what you contribute towards aged care services.
Key points
- Confirm which fee rules apply before relying on a quoted amount.
- Individual eligibility, availability and outcomes can vary.
- Ask questions early and seek independent help if anything feels unclear or unsafe.
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01Guide sectionHow does receiving Support at Home affect my Age Pension?
Starting Support at Home does not normally reduce or cancel your Age Pension.
Support at Home funding is paid towards approved aged care services. It is not paid to you as personal income, so the government subsidy itself does not generally count as income under the Age Pension income test.
Your Age Pension will continue to be calculated under the usual Centrelink income and assets tests. Support at Home has a separate financial assessment that determines how much you contribute towards certain aged care services.
02Guide sectionAre the two assessments connected?
They are connected administratively, but they serve different purposes.
The Age Pension assessment determines:
whether you qualify for the pension
whether you receive a full or part pension
how much pension is paid.
The Support at Home income and assets assessment determines:
your contribution rate for independence services
your contribution rate for everyday living services
how much the government pays towards those services.
Your eligibility for Support at Home is based on your assessed care needs, not on whether you receive an Age Pension.
03Guide sectionDo pensioners need another financial assessment?
Services Australia may already have the financial information required if you receive a relevant means-tested payment, such as the Age Pension.
Full and part pensioners generally do not need to complete the separate Support at Home financial assessment form unless Services Australia asks for more information.
Their Support at Home contribution rates are generally calculated using the existing pension income and assets assessment.
04Guide sectionDoes paying Support at Home contributions reduce my pension?
No. Your participant contributions are aged care expenses. They are not normally deducted directly from your pension calculation.
For example, if a full pensioner receives one hour of cleaning priced at $110:
the Support at Home everyday-living contribution rate is 17.5%
the participant pays $19.25
the government pays the remaining $90.75.
The person still receives their Age Pension under the ordinary pension rules. The $19.25 is an expense paid from their available income, not a reduction applied to their pension entitlement.
05Practical actionDoes the Support at Home budget count as one of my assets?
Generally, no.
Your Support at Home budget is government funding reserved for approved care and services. It is not cash held in your bank account and cannot be used for ordinary personal spending.
It therefore does not normally become an assessable financial asset for the Age Pension.
06Guide sectionDoes the family home remain exempt?
For someone continuing to live at home and receive Support at Home, their principal family home is generally exempt from the Age Pension assets test.
The person’s homeowner status can still affect which pension asset thresholds apply, but the ordinary market value of the principal home is not usually counted as an assessable asset.
The treatment may become more complex if:
part of the property is rented
the property is on multiple titles
it includes more than the exempt surrounding land
part of it is used for business
the person stops living there permanently.
07Guide sectionWhat financial changes could affect the pension?
Receiving Support at Home itself may not affect the pension, but financial changes made around the same time could.
Tell Services Australia if there are changes to:
bank balances or investments
superannuation or income streams
employment or business income
rental income
relationship status
property ownership
trusts or companies
gifts or transfers of assets
whether the home remains the principal residence.
Services Australia may need to recalculate both the Age Pension and the Support at Home contribution rates when income or assets change.
08Guide sectionWhat if one partner receives Support at Home?
Where one member of a couple receives Support at Home, Services Australia generally considers the couple’s combined assessable income and assets under the applicable couple rules.
This can affect:
whether each person receives a full or part Age Pension
the Support at Home participant’s contribution percentages.
The assessment may consider assets held in either person’s name. Receiving care does not, by itself, mean the couple is treated as separated.
09Guide sectionWhat if my financial circumstances improve or decline?
Your Support at Home contribution rates and Age Pension may both be reviewed.
For example:
an increase in investments could reduce the Age Pension and increase aged care contribution rates
a significant reduction in assessable assets could increase the pension and lower aged care contributions
becoming eligible for a Commonwealth Seniors Health Card could affect the contribution rates applying to Support at Home.
The effect is not always immediate or identical because the pension and aged care systems use their financial information for different calculations.
10Worth checkingWhat if I cannot afford my aged care contributions?
Do not stop essential services without first speaking with:
your care partner or provider
Services Australia
My Aged Care
an Aged Care Specialist Officer.
Financial hardship assistance may be available where a person cannot reasonably afford their aged care costs because of circumstances beyond their control.
11Guide sectionWhat should I do next?
Confirm the details with My Aged Care or the relevant provider, write down your questions and ask for important information in writing before making a decision.
12Guide sectionHelpful Local Home Help resources
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