Your Support at Home contributions rates can change when government rules, your income or your assets change. Higher deeming rates may increase contributions, while approved personal care services no longer attract contributions from 1 October 2026. Personal care still uses your available Support at Home budget.
Key Takeaways
- Higher deeming rates can increase your assessed income, even when your financial assets stay the same.
- Approved personal care services no longer attract participant contributions from 1 October 2026 but still use your Support at Home budget.
- Your contribution depends on your financial circumstances, pension status and the type of care you receive.
- Personal assets are assessed using their market value, not their insurance replacement value.
- Updates to government rules or your financial circumstances can affect your contributions.
Why Can Support at Home Contribution Rates Change?
You open your latest Support at Home statement and do a double take. The services haven’t changed. Your care needs haven’t changed. But your contribution has. What happened?
There are two recent changes worth understanding.
On 20 September 2026, the deeming rates used in the income test increased by 0.5% to 1.75% and 3.75%. That means you are now considered to have more income from the same financial assets.
Then, from 1 October 2026, personal care moved from the Independence category to Clinical Supports. That means approved personal care services, such as showering, dressing and other personal care, no longer attract a participant contribution.
So your Support at Home contribution could go up because of the first change and down because of the second.
While these two updates happened recently due to new government rules, they raise another important point. Your contributions can change whenever your income or assets change.
How Are Your Support at Home Contributions Assessed?
Support at Home contributions are based on an income and assets assessment carried out by Services Australia. The assessment is similar to the Age Pension means test. Your contribution depends on your financial circumstances, your pension status and the type of care you receive.
This is more complicated than looking at your bank balance or your taxable income.
For a broader overview of fees, contribution rules and government funding, see our Aged Care finances and funding hub.
How Can Deeming Increase Your Assessed Income?
The income test looks at different types of income in different ways.
For financial assets such as bank accounts, shares and superannuation, Services Australia generally uses deeming rather than the interest, dividends or investment return you receive.
Deeming is essentially an assumption of income. Rather than looking at what the investments actually earn, the rules apply a set rate. From 20 September 2026, the deeming rates are 1.75% on the lower threshold and 3.75% on the amount above it. For a single person, the first $66,800 of financial assets is deemed at 1.75%, with amounts above that deemed at 3.75%. For a couple the first $110,800 are deemed to earn 1.75% and 3.75% applies to the assets above.
Let’s look at an example. Sally has $600,000 of financial assets which are deemed to earn $21,164/year. Prior to the increase her investments were deemed to earn $20,335/year. Her assets haven’t changed but she is now considered to earn $829 more income per year.
How Do Asset Values Affect Your Assessment?
Your assets matter too.
Financial assets such as bank accounts, term deposits, shares and managed investments are assessed. Superannuation is also assessable once you reach Age Pension age. The value used for assets is generally what you could reasonably receive if the asset were sold, its market value.
So, if your shares increase from $100,000 to $130,000, your assessable assets have gone up by $30,000. Likewise, the opposite is true, if your shares fall in value, your assessable assets will reduce.
Which Value Counts for Your Personal Assets?
Your personal assets count too. One of the most common mistakes is overvaluing personal assets. When you insure your car, caravan, boat and household contents, you typically insure them for an amount that would allow you to replace them. That isn’t the value needed for the means test. For Support at Home, you should report the market value of your personal assets.
Imagine your car, caravan, boat and household contents are insured for a combined $60,000.
You might reasonably think, “I have $60,000 of personal assets.” But if you sold everything second-hand, you might only receive $30,000. For the means test, the relevant figure is the market value, not the insurance replacement value. That $30,000 difference can make a meaningful difference for someone close to a contribution threshold.
Why Could Your Personal Care Contributions Decrease?
The other major recent change can actually see your contributions reduce.
From 1 October 2026, personal care moved into Clinical Supports. Previously, personal care such as assistance with showering, dressing and taking medications was treated as an Independence service and attracted a contribution of between 5% and 50%. From 1 October, approved personal care services attract no participant contribution. It’s important to note that the services still use your Support at Home budget. It is the participant contribution that has been removed.
What Should You Check if Your Contribution Changes?
Support at Home contributions are not fixed. They vary with government rules and your assets and income. If your contribution has changed, check the income and assets information being used by Services Australia and make sure the values are correct.
How Our Free Service Can Help
When your Support at Home contribution changes, understanding your care options and likely costs can help you make a more informed.
Aged Care Decisions is a free, independent comparison service that helps families find and compare aged care providers, including Support at Home providers, in one place.
Our team prepares a custom Support at Home Provider Options Report, showing providers matched to your location and needs, along with standard Support at Home prices in your area.
For a limited time, you will also receive a custom Support at Home Costs Report, giving you a personalised view of your likely Support at Home fees so you can compare your options with clearer cost information.
Get your free Provider Options Report and Support at Home Costs Report today.
FAQs
Can my contribution change if my services stay the same?
Yes, your contribution can change even when your services and care needs remain the same. Updates to government rules or your financial circumstances can affect your assessment. Higher deeming rates can also increase your assessed income without any increase in the value of your financial assets.
What is deeming?
Deeming uses set rates to calculate income from financial assets rather than using the returns you actually receive. These assets can include bank accounts, shares and superannuation. Higher deeming rates can therefore increase your assessed income, even when the value of your investments remains the same.
Do I still pay a contribution for personal care?
Approved personal care services no longer attract a participant contribution from 1 October 2026. These services moved from the Independence category to Clinical Supports. Personal care still uses your available Support at Home budget, so removing the contribution does not remove the service’s cost from that budget.
Are personal assets assessed at their insured value?
Personal assets are assessed at their market value, not their insurance replacement value. Market value means what you could reasonably receive if you sold them. Your car, caravan, boat and household contents may have a lower second-hand value than the amount shown on your insurance policy.
What should I check if my contribution has changed?
Check the income and assets information Services Australia is using and whether the values are correct. Your contribution depends on your financial circumstances, pension status and service types. Different asset values or government rules can affect your contribution, even if your care needs remain the same.
The information contained in this article is intended as general information only and does not constitute personal financial advice, legal advice or professional advice. While care has been taken to ensure the information is accurate and up to date at the time of publication, rules, rates and circumstances can change.
