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Aged care in Australia is heavily subsidized by the Australian Government, but it is not entirely free. The government pays significant subsidies to approved providers on your behalf, but individuals are still expected to contribute to their care and living costs depending on their income and assets. The exact costs depend heavily on whether you are remaining at home or moving into an aged care facility:1.
For Support at Home, there is no Basic Daily Fee. You may instead pay contributions only when certain approved services are delivered. In residential aged care, most residents pay a Basic Daily Fee toward everyday living costs.
The Income-Tested Care Fee was part of the former Home Care Package system. New Support at Home participants instead pay service contributions based on income and assets and the type of service received. Protected 'no worse off' arrangements apply to some people approved for HCP by 12 September 2024.
A Means-Tested Care Fee applies mainly to people who entered residential aged care under the 1 July 2014 arrangements. People entering from 1 November 2025 generally face different means-tested charges called the hotelling contribution and non-clinical care contribution.
A Services Australia Income and Assets Assessment evaluates an individual's personal financial situation to determine their eligibility and contribution rates for various Australian government pensions, income support payments (e.g., Age Pension), or aged care services. How It Works Income Test: Evaluates income from all sources. This includes salaries, pensions, superannuation, investments, and rental properties.
You are not legally required to complete a financial assessment form.
No, you do not have to sell the family home. Accommodation costs can be funded through a daily rental-style fee called a Daily Accommodation Payment (DAP), or by a combination of a partial lump sum (Refundable Accommodation Deposit) and DAP, avoiding a forced sale. The home's treatment depends on your specific circumstances:Couples: If your spouse remains in the home, its value is fully exempt from aged care assets...
For Support at Home, an ordinary family home is generally exempt, although homeownership can affect the thresholds used in the assessment. If one spouse enters residential aged care and the other remains at home, the property is also generally exempt while that spouse continues living there.
Caps depend on which fee arrangements apply. Older residential arrangements have annual and lifetime caps on the Means-Tested Care Fee. Newer arrangements have separate caps and time limits for non-clinical care contributions, and Support at Home has its own indexed lifetime contribution cap.
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.
You usually do not need a specialist financial adviser just to choose a Support at Home provider. Get advice when the care decision involves complex assets, pension consequences, substantial private spending or possible residential care. For a routine agreement, focus first on the provider’s prices, proposed budget, service availability and contract terms.
You should not assume you must stop receiving care because you cannot afford the fees. Complete the financial assessment, apply for hardship assistance through Services Australia and tell your provider immediately. If approved, the government may cover some or all eligible costs for a specified period.
