081.aged care means test assessments government website

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Aged care means test assessmentsAn assessment of your income and assets for Government subsidised aged care.

A new means test assessment will apply to new care recipients who enter Government subsidised residential aged care on or after 1July 2014. Your combined income and assets will be used in the new means test, and a new income test assessment will also applyif you become a new Home Care Package recipient on or after 1 July 2014.

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To be eligible for Australian Government subsidised aged care an assessment of your care needs must be undertaken by an AgedCare Assessment Team (ACAT). You must complete an application form to receive an aged care means test assessment.It is not compulsory to have an aged care means test assessment. If you choose not to have one you may not receive assistancefrom the Government with the costs of your aged care, and you may be asked to pay the maximum fees. You can ask for anassessment to be done either before or after you enter care. If you are entering residential care you must complete the PermanentResidential Aged Care - Request for a Combined Assets and Income Assessment form (SA457). If you are a pensioner you will onlyneed to complete certain sections of the form as we already have some of your information.If you are a self funded retiree and commencing a Home Care Package, you must fill out the Aged Care Fees Income Assessmentform (SA456). If you are a pensioner you do not need to complete this form as we already have the relevant information.The Department of Veterans' Affairs provides aged care income and assets assessments for their income support paymentcustomers, only. We provide assessments for all other applicants.

AssessmentsIf you entered permanent residential aged care before 1 July 2014, you will continue to be assessed using the existing income andassets assessments. You can ask to be assessed under the new means test if you move to a new provider. If you leave care for morethan 28 days after 1 July 2014 without approved leave and then re-enter care, you will be assessed under the new rules.

Aged care needs assessmentContact an ACAT for a free Aged Care Assessment.To find your nearest ACAT visit the Department of Social Services website or phone Freecall 1800 200 422.Once an ACAT team has met with you and determined what your care needs are, they will recommend the type of aged careservices that are the most appropriate for you. This may be care in a residential aged care home.

Residential aged care combined assets and income assessmentsYour combined assets and income is used to determine whether you are eligible for assistance from the Government with the cost ofyour residential aged care accommodation. This assessment is also used to work out the amount, if any, of the means tested carefee that you may be asked to pay to your residential aged care service provider.An ACAT can help you get a copy of the aged care Combined Assets and Income Assessment application form when they assessyour care needs.Download the Permanent Residential Aged Care - Request for a Combined Assets and Income Assessment form (SA457) or call


1800 227 475 to request a copy.If you are an Aged Care provider, contact the Aged Care enquiries line on 1800 195 206 to request a copy of the form.Your combined assets and income assessment for residential aged care purposes will be based on your circumstances, either at orbefore the day that you enter permanent residential aged care. Your assessment may change if your circumstances change.If you are a member of a couple, half of the combined income and assets owned by you or your partner are taken into account forthe assessment. It does not matter which partner owns them.Some income and assets are assessed differently for aged care purposes than they would be for income support purposes. Forexample, your home will be counted as an asset for aged care purposes unless it is occupied at the relevant time by your:

partner or dependent childcarer who has lived in the home for the past 2 years and is eligible to receive an income support payment, orclose relative who has lived in the home for the past 5 years and is eligible to receive an income support payment

If the person who is occupying your home moves out, your home may no longer be exempt from your aged care means test. If yourhome is included as an asset its value will be capped.People who are considered to be blind for social security purposes are not exempt for aged care means testing purposes.

Home care income assessmentsIf you receive a means tested income support payment, such as Age Pension or Service Pension, you do not need to complete anAged Care Fees Income Assessment form (SA456). A summary of the income details held on your income support payment recordwill automatically be used to determine what home care income tested fee, if any, you may need to pay to your service providerafter you start to receive home care.If you are a self-funded retiree you will need to complete an Aged Care Fees Income Assessment form (SA456). If you do notcomplete this form, you may be liable to pay the maximum income tested fee to your home care service provider.Income is assessed for aged care purposes differently to taxable income. For aged care purposes, income is assessed in the sameway as for pension purposes. This includes deemed income on financial assets and on money or assets that have been gifted awaywithin the last 5 years.Each member of a couple is considered to have half the combined income of both partners.People who are considered to be blind for social security purposes are not exempt for home care income assessment purposes.The amount of income tested fees that you may be asked to pay if you receive home care is also limited by a $5,000 annual cap forthose receiving a part pension, a $10,000 annual cap for self funded retirees and a $60,000 lifetime cap.


For more information about aged care income assessments call us on Freecall 1800 227 475.

Types of careResidential aged careResidential care services provide accommodation and support for people who can no longer live at home.To live in an aged care home permanently, your care needs will need to be assessed by an ACAT.

Residential aged care costsIf you are a new permanent aged care resident, you may need to pay:

a basic daily fee. This covers living costs such as meals, power and laundry. For some people this is the only fee they arerequired to paya means tested care fee. This is an additional contribution towards the costs of your care that some people may be requiredto pay. We will work out if you are required to pay this fee based on an assessment of your income and assets, and will adviseyou of the amountan accommodation payment. This is for your accommodation in the home. Some people will have their accommodationcosts met in full or part by the Government, while others will need to pay the accommodation price agreed with the aged carehome. We will advise you which applies to you based on an assessment of your income and assetsfees for extra or additional optional services. Additional fees may apply if you choose a higher standard ofaccommodation or additional services. These vary from home to home. Your aged care provider can provide you with details ofthese services and the fees that apply

Accommodation paymentsAn accommodation payment is the amount that you pay towards the cost of your accommodation in an aged care home.Accommodation payments are different to daily care fees.If you are not eligible based on the income and assets test for Government assistance with your accommodation costs, you will needto agree on an accommodation price with the aged care home. Accommodation prices are published on the My Aged Care website.You can choose to pay the accommodation payment as:

a lump sum fully Refundable Accommodation Depositan equivalent Daily Accommodation Payment, ora combination of both


Accommodation contributionIf you are eligible for Government assistance with your accommodation costs you may still be asked to make an accommodationcontribution. In this case we will advise you and the provider of the amount. In addition to your contribution, the Government willalso pay an accommodation supplement to the provider on your behalf.Your accommodation contribution amount can change after you enter residential aged care if your circumstances change.You can choose to pay your accommodation contribution as a lump sum Refundable Accommodation Contribution or equivalentDaily Accommodation Contribution, or a combination of both.

Basic daily feeBasic daily fees are paid to service providers to help cover the cost of your daily living expenses such as meals, laundry, heating andcooling, and nursing or personal care. The maximum basic daily fee for all aged care residents is 85% of the single basic AgePension daily payment rate.

Means tested care feeYou may be asked to pay a means tested care fee to your service provider if:

you have not had a combined assets and income means test, oryour combined assets and income assessment shows that you have the financial capacity to make an additional contribution toyour care costs

If you have not had a combined assets and income means test assessment you can be asked to pay a fee equal to the cost of thesubsidy the Government would have paid for your care.If you have had a means test assessment, then the fee you may have to pay will be the lower amount of:

the amount you are assessed as being able to contribute based on your income and assets, orthe cost of your care

The amount of means tested fees that you may be asked to pay is also limited by a $25,000 annual cap and a $60,000 lifetime cap.

Fees for extra or additional optional servicesAt an additional cost, you can choose a higher standard of accommodation or additional services.These services are different in each home. Your aged care provider can give you details of the services available and the fees thatapply.


Home careHome care is funded by the Australian Government through the Home Care Packages Program and provides aged care services topeople in their own home.

a basic daily fee, andan income tested care fee

Basic daily feeThe basic daily fee for home care is equivalent to 17.5% of the single basic Age Pension daily payment rate.

Income tested care feeNew home care recipients may be asked to pay an income tested care fee based on their total assessable income over the relevantincome free area.Home care recipients who receive a means tested income support payment, such as Age Pension from us, or Service Pension orIncome Support Supplement from Department of Veterans Affairs, will have their total assessable income determined automaticallyusing the details already held on their income support payment record after they begin receiving home care.If you are not receiving a means tested income support payment you will need to apply to have an income assessment, otherwiseyou may be asked to pay the maximum income tested care fee.The current fees arrangements will apply to you if you are already receiving home care on 30 June 2014 and while they remain inhome care. If you spend more than 28 days without a Home Care Package, and you are not taking approved leave, the new ruleswill apply if you re-enter home care after 1 July 2014.Read more about Home Care Packages on the My Aged Care website.

Financial hardshipHardship assistance helps you when you have difficulty paying fees and charges to an aged care home. Your fees and charges maybe reduced or waived according to your individual circumstances. In these circumstances, the Government may pay some or all ofyour fees and charges on your behalf to your aged care home.Download the financial hardship assistance guide and application form - home care and respite careDownload the financial hardship assistance guide and application form - residential care

Respite careEasily create high-quality PDFs from your web pages - get a business license!

Respite care offers the opportunity for the carer, and the person being cared for, to take a break. Respite care may be giveninformally by friends, family, neighbours, or by formal respite services such as an overnight respite cottage, day centre or aged carehome.Respite care may be for a few hours or days or for longer periods, depending on the needs of the carer, the needs of the person theycare for, and what services are available in the local area.Costs for respite care may vary depending on your personal circumstances and the kind of support you need. As with all aged careservices, you may be asked to contribute to the cost of your care if you can afford to do so.Read more about respite care on the My Aged Care website.

How entering residential aged care may affect your Centrelink paymentIf you receive an income support payment from us, you need to let us know within 14 days if you move into residential aged care orif you sell or rent out your home. Changes in your circumstances may affect your rate of payment as well as the aged care fees youcan be asked to pay.Most people continue to be paid the same amount of pension after moving into residential aged care. If you are a member of acouple and you are separated due to illness, your pension may be paid at a higher rate.If you own your home, it is exempt from the pension assets test while you live in it. It will remain exempt for 2 years after youleave it to enter residential aged care. The date that the 2 year exemption period starts from can vary if you are, or were, a memberof a couple at the time you entered residential aged care.Once the 2 year exemption period has ended, the value of your former home will normally be counted as an asset for the pensionassets test and this can affect the rate of your pension.An exemption to this may apply if you rent out your former home and are paying either an accommodation payment or contributionby periodic payments. In this situation:

the rental income from your former home is exempt in full for both the pension and aged care means tests, andthe value of your former home is exempt from the pension assets test

For more information about how residential aged care can affect your payment, call us on 132 300.Rent Assistance is not usually paid to aged care residents.If you are a self funded retiree you should also tell us of any significant changes in your financial circumstances.


More informationRead more about aged care means test assessments on the My Aged Care website or Freecall 1800 200 422.

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Department of Human Services ABN 90 794 605 008 Page last updated: Wednesday 18 February 2015


081.aged care means test assessments government website

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