How does entering aged care affect my Age Pension?
Financials, Fees & Funding
Assets & Pension
Ask Liz for personalised guidance
In short...
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.
The details...
How 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.
Are 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.
Do 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.
Does 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.
Does 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.
Does 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.
What 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.
What 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.
What 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.
What 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.
What 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.
Helpful Local Home Help resources
Takeaways
- 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.
About Local Home Help
How Providers Are Listed
How providers appear on Local Home Help Local Home Help helps families discover home support services available in their area. Providers may appear on the site in a few different ways. Some providers create and manage their own listing on the platform. Others may appear based on publicly available information about services operating in a particular region. This helps families see a broader view of support options available locally. Where possible, we encourage providers to claim and manage their listing so information such as services offered, contact details and service areas remain accurate and up to date. There are no paid or enhanced listings on Local Home Help, and there never will be. Claiming or managing a listing has no effect on a provider's visibility, ranking, or how often it appears in a consumer's personalised shortlist, it simply keeps the information families see accurate and current. Local Home Help does not charge consumers to access the platform. We may generate revenue in other ways in the future, but none of these will ever influence which providers a consumer sees, how they're ranked, or what appears in their shortlist. Provider visibility is, and will remain, based solely on relevance to each family's stated needs. What does not influence Liz There are no paid or enhanced listings on Local Home Help, not now, and not in the future. No provider can pay for a higher position in Liz results, a better ranking, or inclusion in a consumer's shortlist. This is a permanent commitment, not a current-state description. Claiming or updating a profile does not improve a provider's ranking. It gives Liz more accurate information about the provider's services, coverage and care model, which can make the explanation of why a provider matched clearer, but it has no effect on whether or how highly that provider appears. Local Home Help intends to generate revenue in other ways in the future - for example through tools built for providers, or products separate from the consumer matching experience. None of these will influence which providers appear in Liz's results, how they're ranked, or what a consumer sees in their personalised shortlist. Visibility and ranking are based solely on the fit factors described above, and nothing else. This reflects the platform's core ethos: Local Home Help is built consumer-first. Every design and revenue decision is made so that what a family sees from Liz is the most relevant outcome for them. Never the most profitable outcome for Local Home Help or a provider.
Independence Statement
Our independence Local Home Help is designed to help families navigate the often confusing world of home support and aged care services. The platform aims to present information in a clear and balanced way so families can better understand the types of help available and where to find it. While providers may appear on the platform, Local Home Help does not recommend one provider over another. The decision about which service may be suitable will always depend on individual circumstances. Families are encouraged to contact providers directly, ask questions and make their own enquiries before making a decision. Our focus is to make the process of understanding and finding support at home easier. Local Home Help does not accept payment of any kind in exchange for provider visibility, ranking, or shortlist placement, and never will. Any future revenue Local Home Help generates will come from sources entirely separate from how providers are matched to consumers.
Quality Signals
What to look for when choosing a provider Finding the right support service can take time. When considering a provider, families may wish to look for signs of quality such as: Clear information about services offered Transparent pricing or funding options Experience supporting older people at home Relevant professional qualifications where appropriate Positive feedback or reputation in the community Willingness to answer questions about care and services It is often helpful to speak with more than one provider before making a decision. Local Home Help aims to provide a starting point for exploring services, but the best choice will depend on the needs and preferences of the individual receiving support.
About the Author
Local Home Help Editorial Team
This article was created by Local Home Help to help Australian families better understand aged care and home support options in plain English.
Our content is based on publicly available information from:
-
My Aged Care
-
Department of Health, Disability and Ageing
-
Aged Care Quality and Safety Commission
-
Provider pricing schedules and operational experience within the aged care sector.
Local Home Help is an independent consumer information platform and does not provide medical, legal or financial advice.
Important information
Aged care rules, fees, eligibility requirements and program arrangements can change. The information on this page is general guidance only and may not apply to every person or situation.
Before making a financial, legal or care decision, check the latest information with My Aged Care, Services Australia, the Department of Health, Disability and Ageing, or another appropriate official source.
Local Home Help does not provide legal, financial, medical or clinical advice.
Source data
https://www.health.gov.au/our-work/residential-aged-care/charging/fee-and-accommodation-arrangements
Last reviewed
20/7/26, 9:08 pm