Aged care costs depend on a financial assessment, whether you’re looking at Support at Home (SaH) or a residential aged care home. The aged care means test determines your individual contribution rate for eligible services. Full and part pensioners can often have this assessment based on financial details already held for their pension. Self-funded retirees and Commonwealth Seniors Health Card holders usually need to provide their income and asset details separately. Completing the assessment before choosing a provider or aged care home allows you to know your likely contribution in advance.
Key Takeaways
- Financial assessments for aged care are not compulsory, but skipping one usually means paying the highest applicable rate.
- Full and part pensioners can often rely on details already on file from their pension.
- Self-funded retirees usually need to provide fresh financial information.
- Your contribution depends on your finances, pension status and the services or care setting you use.
- Contribution rates and thresholds are reviewed regularly, so always check current figures.
- Support at Home and residential aged care use separate assessments, so check which one applies to you.
There’s no flat fee for Support at Home (SaH) services or residential aged care. It all comes down to your income and assets. Get assessed early and you’ll know what you’re likely to pay before you start shopping around for a provider, so you can compare your options with real numbers instead of guesswork.
What is the Means Test?
An income and assets assessment is how Services Australia works out your Support at Home contribution. It takes your pension status, income and relevant financial assets into account.
This is separate from your aged care assessment, which decides what care you need and which services you can access.
To clarify, your care assessment tells you what help you can get. Your income and assets assessment tells you what that help might cost.
The type of financial assessment you need depends on the care you’re accessing. Support at Home uses an income and assets assessment whereas residential aged care uses a means assessment, which works a little differently.
Is the Income and Assets Test Mandatory?
No, you don’t have to complete an income and assets assessment to receive Support at Home funding. But skip it, and you may end up paying the highest contribution rate, since there won’t be enough detail on file to work out a rate that actually fits your situation.
That makes budgeting harder than it needs to be. Completing the assessment gives you a clearer picture of what to expect, and means you’re charged a rate that matches your real circumstances, not just the default.
Who Should Complete it?
If you don’t receive a means-tested pension, you should complete a financial assessment. This applies to part pensioners, Commonwealth Seniors Health Card holders and self-funded retirees.
The assessment gives Services Australia what it needs to calculate your individual contribution rate, rather than defaulting to the highest one. This matters most if your income or assets might place you below the top rate.
Full pensioners usually don’t need to submit a new form, since financial information already held from their pension assessment can often be used. Even so, check your letter from Centrelink or My Aged Care to confirm what’s expected of you, and call them directly if anything is unclear.
Full Pensioners
Full pensioners generally have the simplest path, since existing pension information can usually be used to work out their contribution. This means lower contribution rates for services or fees that require one, and clinical supports remain fully government funded regardless of your assessment.
Still, read your outcome letter carefully. It sets out your contribution rates and any action needed on your part.
If your circumstances change, whether through income, assets or a shift in relationship status, notify the relevant agency so your contribution rate stays accurate.
Part Pensioners
If you’re asked to complete an assessment, it’s worth doing so your contribution rate actually reflects your circumstances. A part pensioner’s contribution can land anywhere between the lowest and highest levels, depending on income, assets and pension status.
Don’t assume you’ll be charged the maximum. Getting assessed gives you a clearer answer before you commit to ongoing services or a room in an aged care home.
Self-Funded Retirees
Self-funded retirees should generally complete a financial assessment, since it’s the clearest way to confirm what you’ll actually contribute. Some self-funded retirees do pay more than pensioners, but this comes down to individual financial circumstances rather than a fixed rule.
Even if your income is modest and you don’t receive an Age Pension, it’s still worth getting assessed. You may land on a lower contribution rate than you’d expect.
If your finances involve a family trust, private company, investment property or several superannuation accounts, gathering the paperwork can take time. Starting early takes the pressure off later.
How Deeming Can Affect You
The assessment doesn’t simply look at what your investments actually earn. Instead, it uses deeming, applying a set assumed rate of return regardless of your real returns, which can catch people off guard if their investments are earning less than that assumed rate.
This is one more reason to check your likely contribution before choosing services or an aged care home. Deeming rates and thresholds do change over time, so check current government information or speak with an independent financial adviser for guidance specific to your situation.
Support at Home Contributions
Support at Home services fall into three categories:
- Clinical supports, including nursing, allied health and nutrition support, are fully funded by the Australian Government.
- Independence services help people stay safe, active and connected, covering things like transport, respite and assistive technology.
- Everyday living services cover practical tasks at home, from domestic assistance and meal preparation to gardening and home maintenance.
Most people contribute towards independence and everyday living services, with the amount depending on their income and assets assessment, pension status and the specific services they use.
From October 2026, approved personal care services such as showering, dressing and continence support will move into the fully funded clinical category.
Residential Aged Care Contributions
If you’re moving into an aged care home instead, you will need to submit a means assessment. This still looks at your income and assets, but it’s used to work out your accommodation costs and any means-tested care fee, rather than a Support at Home contribution rate.
If your income and assets are below the relevant thresholds, you may be assessed as having low means. This can mean government help with your accommodation costs, sometimes covering the full amount.
If you choose not to complete a means assessment when entering residential aged care, you’ll be classified as “means not disclosed.” This means you won’t be eligible for government support with accommodation costs, and your contributions will be set at the highest applicable rate.
Because residential aged care involves accommodation payments as well as ongoing fees, it’s worth getting your means assessed before choosing a room or signing an agreement. This gives you a clearer picture of your full costs upfront.
Get Your Fee Estimate
Once you know your approved services, getting a fee estimate can help you plan with more confidence.
For Support at Home, request Aged Care Decisions’ free Support at Home Cost Estimate Report. It explains your likely contribution costs based on your approved services and circumstances.
For residential aged care, use the My Aged Care aged care home fee estimator. It provides an estimate of aged care home fees, including accommodation costs and means-tested fees. You will need details of your income, assets and relationship status.
Both estimates are a guide only. Services Australia confirms your actual contribution or fees after assessing your financial circumstances.
See our Aged Care Fees and Finances Guide for more information.
Gather Your Documentation
Preparing early can make the assessment less stressful. Put your documents in one place before starting the process.
You may need:
- Details of your pension or income support payment
- Information about income from work, investments or other sources
- Recent bank, superannuation and investment statements
- Details of assets held in your name or jointly with a partner
- Information about income from trusts, companies, businesses or investment properties
- Details of your partner’s finances, where relevant
If you have a more complex financial situation, it may help to speak with an independent financial adviser. They can explain your options based on your circumstances.
What if Circumstances Change?
Your contribution rate can change over time. This may happen if your income, assets, pension status or care needs change.
Contribution rates can also change when pension thresholds and amounts are indexed in March and September. See our Schedule of Aged Care Fees and Charges article for the current rates. Services Australia reviews contribution rates regularly and will write to you if your rate changes.
Let Services Australia know if there is a significant change in your circumstances. You can update your details by calling the Services Australia Aged Care line on 1800 227 475. Residents in an aged care home must generally report changes within 28 days. This can help make sure your contribution rate remains accurate.
If paying for care becomes difficult because of circumstances beyond your control, you may be able to apply for financial hardship assistance.
How Aged Care Decisions’ Free Service Helps
Finding the right Support at Home provider or aged care home should not add to your stress. Aged Care Decisions offers free, independent help to make the search easier.
We listen to your care needs, location, budget and preferences. We then provide a personalised Options Report with suitable providers or homes in your area.
You can use your Options Report to compare options, ask about availability and discuss prices. This gives you more information before you choose.
We do not provide financial advice. However, we can help you understand your outcome letter and take practical next steps.
Reach out today and get your free Provider Options and Support at Home Costs Reports.
What to Do Next
- Check your outcome letter and approved services or care level.
- Request Aged Care Decisions’ free Support at Home Cost Estimate Report if you are looking for in-home support.
- Use the My Aged Care aged care home fee estimator if you are considering residential aged care.
- Use the relevant My Aged Care fee estimator for a starting estimate.
- Contact Services Australia on 1800 227 475 if you need a financial assessment.
- Gather your financial documents before beginning the form.
- Compare providers or aged care homes based on services, availability and prices.
- Seek independent financial advice if you need guidance for your personal circumstances.
Here’s how Aged Care Decisions’ FREE aged care matching service works:
