Navigating home care costs can be overwhelming, especially when it comes to the income-tested care fee (ITF) . This guide answers common questions about eligibility, fees, and caps—helping you understand how much you may need to contribute towards your Home Care Package.

What is an income tested care fee?

The income tested care fee is calculated by Services Australia based on your income and assets. The purpose of the income tested care fee is to help cover the costs associated with your government funded home care package.

The fee reduces the amount that the government contributes to your care, ensuring that you contribute according to your financial situation while still receiving the same level of care. It’s designed to be fair and equitable, taking into account your ability to contribute towards the cost of your home care.
Not everyone has to pay an income tested care fee because the fee is based on your income.

When do I need to start paying income tested care fees?

You may start paying income-tested care fees once you engage a Home Care Package provider.  
The provider may assist you in contacting Services Australia. Services Australia, will assess your income and assets to determine the amount and confirm the payment start date of the income-tested care fee.
Throughout the duration of your Home Care Package, your income tested care fee may change depending on any changes in your income and assets.

Do I have to pay my income tested care fee?

Yes, the income tested care fee amount is determined by Services Australia, and Services Australia will advise what your co-contribution amount will be from your income assessment.  The Income tested care fee is paid from you, to your provider to cover the gap in government funding. Failure to pay your fee may impact your ongoing eligibility for the home care package and the level of care provided.

What if I do not want my income assessed by Services Australia?

If you decide not to have your income assessed, you will be required to pay the maximum daily income tested care fee. 

What if I don’t want to pay my income tested fee?

Unfortunately, care services under a government funded Home Care package can not be delivered if you are assessed to pay, and do not pay your income tested care fee.

Will I have to pay an income-tested care fee if I am receiving a full Australian pension?

If you are a full Australian pensioner, you may not be required to pay an income-tested care fee for your Home Care Package. The fee is determined based on your income and assets, and full pensioners often have their fees waived or reduced.

To initiate the income assessment process

Go to the Services Australia website > Ageing > Getting aged care services > Top Payments > Aged care calculation of your cost of care > How to apply. Or click on this link https://www.servicesaustralia.gov.au/how-to-apply-for-aged-care-calculation-your-cost-care?context=23296. 

Why does my income tested care fee change and how often?

If your financial situation changes while you are receiving care, your income tested care fee can change. The cap amounts shown below change with indexation on 20 March and 20 September every year  and are up to date as of 20 March 2024.

Is there a limit to how much income tested care fee I will have to pay?

Yes. There are annual and lifetime caps that apply to the income tested care fee for home care. Once you reach a cap, you cannot be asked to pay any more in income tested care fees.

Any income tested care fee you pay while you are receiving home care will be counted towards the annual and lifetime caps if you move into an aged care home.
Maximum annual amounts (Annual cap)
The cap amount that applies to you depends on what you earn in a year.
For example, for a single person:

• If you are a part pensioner or if you earn between $33,027.80 and $63,559.60 a year, your income tested care fee is capped at $18.30 per day or $6,661.80 per year.
• If you earn more than $63,559.60 a year, your income tested care fee is capped at $36.60 per day or $13,323.68 per year.

For updated amounts, refer to https://www.myagedcare.gov.au/changes-aged-care-fees-annual-and-lifetime-caps 

Maximum lifetime amount (Lifetime cap amount)
As of 20 March 2024, the maximum income tested care fees you can be asked to pay in your lifetime is $79,942.44. After you reach the lifetime cap, you will no longer have to pay income tested care fees.

How is the income tested care fee calculated?

Your income tested care fee is calculated by Services Australia. This fee will reduce the subsidy the government contributes towards your Home Care Package.

This fee is different for everyone. It’s based on your individual income, including your pension. However, full pensioners and people with an income up to $33,027.80 do not pay an income tested care fee as of  20 March 2024. 

You could pay up to $18.30 per day, if you:

• are single earning over $33,027.80
• are a member of a couple living together earning over $25,576.20
• are a member of a couple living apart due to illness earning over $32,351.80

You could pay between $18.30 – $36.60 if you:

• are single earning over $63,559.60
• are a member of a couple living together earning over $48,588.80
• are a member of a couple living apart due to illness earning over $62,883.60

For updated amounts, refer https://www.myagedcare.gov.au/changes-aged-care-fees-annual-and-lifetime-caps 

Websites you may find helpful:

• Fee estimator: How much will I pay? | My Aged Care | 1800 200 422
• Understanding aged care costs | My Aged Care
• Home Care Package costs and fees | My Aged Care 
• Aged Care Calculation of Your Cost of Care | Services Australia | 1800 227 475

If you would like to learn more about how we can help you or someone you love, with government funded Home Care Package support or with Private Home Care, contact your local Right at Home office today. 

Right at Home Australia is a leading provider of quality in-home care. Our mission is to improve the quality of life for those we serve ensuring the Right Care, Right at Home™.  We support people living with complex and post-operative care needs, dementia and cognitive decline, seniors, and adults living with a disability including NDIS participants. Our tailored services help clients to remain safe and independent in their homes. We are an Approved Provider under the Aged Care Act, meaning we can provide quality support at home under a government-funded home care package. We also offer private pay arrangements for those who do not have government funding, or who wish to pay privately for top-up care. Right at Home is all about you. We are available 24/7 so contact your local office today. You can also call our national number on 1300 363 802. 

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