Between understanding different types of aged care and dealing with costs, families often encounter layers of unfamiliar paperwork. An income and means assessment is a vital step that determines how much you will pay for aged care services and how much the government will subsidise. Since the Support at Home program and new Aged Care Act started in November 2025, this assessment calculates your specific contribution rates. It ensures clinical care is fully funded while calculating fair contributions for everyday living and accommodation costs based on your financial capacity.
Key Takeaways
- Support at Home replaced Home Care Packages on 1 November 2025.
- Clinical care is 100% government-funded for both home and residential care
- Your financial situation determines your contribution to independence and everyday living services
- Residential care assessments now calculate your Hotelling Contribution and Non-Clinical Care Contribution.
- Full Age Pensioners usually have their aged care contributions assessed automatically.
- Self-funded retirees must submit an official income and assets form to avoid paying maximum fees.
Families often face layers of financial paperwork and unfamiliar terminology when researching aged care. One of the most important parts of this process is the income and means assessment. It determines how much you will pay for aged care services and how much the government will subsidise
What is an Income and Means Assessment?
An income and means assessment is a formal evaluation of your financial situation. It decides how much you can reasonably afford to contribute toward your aged care. It also determines how much government subsidy you should receive.
The assessment looks at two key elements:
- Income – regular earnings such as pensions, rental income, superannuation payments or investment returns.
- Means (Assets) – the value of what you own, like savings, property, investments and personal belongings.
This gives a full picture of your financial capacity and ensures the aged care system remains fair. People who can afford to contribute more do so, while those with limited resources receive greater assistance.
Do I Need to Complete the Assessment?
You do not need to complete an income and means assessment if you plan to self-fund your aged care. However, if you plan to access government-subsidised care, you will need to complete the assessment.
This typically applies in the following situations:
- Residential Aged Care: An assessment helps determine your accommodation costs and daily care fees.
- Support at Home: An assessment is used to calculate any income-tested care fees for in-home support..
- Respite Care: Short-term care may also require an assessment to determine any applicable contributions..
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Residential Aged Care
A comprehensive means assessment is required if you move into an aged care home. This assessment covers both your income and your assets.
What’s Included
- Income: Just like in a home care assessment, all forms of ongoing income are included.
- Assets: Bank accounts, investments, real estate, vehicles, super balances, and personal valuables may all be included.
Special Treatment of the Family Home
A capped amount or the net market value of your home is included as an asset. The assessment uses whichever amount is lower. Only half this value is included per person for couples.
See Schedule of Fees and Charges for the current rates.
The home is completely exempt if a “protected person” lives there. This includes a partner or dependent child. It also includes eligible carers or close relatives on income support who meet certain criteria.
Couples and Shared Assets
Half the value of all combined assets is included, regardless of ownership, even if listed under one name only.
Timing and Validity
A means assessment can be organised in advance and is valid for 120 days. Another assessment is needed if significant financial or personal changes occur before moving in.
Outcome
The resulting fee advice letter outlines means tested care fees and any accommodation contributions required. It clarifies whether the government will cover some or all accommodation costs, or none at all.
Support At Home
Support at Home replaced Home Care Packages on 1 November 2025. An income assessment now determines your contribution rate for independence and everyday living services. Clinical care is fully funded by the government.
How It Works
Assessment Agency: Most people are assessed by Services Australia, unless they receive a means-tested payment from the Department of Veterans’ Affairs (DVA).
What’s Included: The assessment reviews all forms of regular income, including pensions, superannuation, investment income, and rental returns.
Couples: For couples, half the combined income is included in the assessment, regardless of which partner earns it. This applies even if the couple is living apart for health reasons.
Timing and Validity
Income assessments can be carried out at any time before starting care. The resulting fee advice letter is valid for 120 days. You may need a new assessment if your finances change or your care is delayed.
What Happens Next
You will receive a letter confirming your contribution rates once the assessment is finished. This gives clear certainty to both you and your chosen home care provider
Fees Affected by Assessments
Under the current Aged Care Act, your assessment impacts specific fees:
- Support at Home contributions: You may pay a percentage toward everyday living and independence services based on your income.
- Hotelling Contribution: A residential care fee covering everyday living expenses like food and laundry.
- Non-Clinical Care Contribution: A residential care fee covering personal assistance, capped to limit your total costs.
- Accommodation costs: Your assessment determines if you qualify for government-subsidised accommodation in an aged care home.
Do You Need To Submit A Form?
Full Age Pension recipients usually do not need to submit a new income and assets form. Services Australia can automatically calculate your aged care contributions using your current pension details.
You can update your details through your Centrelink online account if needed. However, self-funded retirees and part-pensioners must complete an official income and assets form to avoid paying maximum fees.
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