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Costs & Funding

The aged care means test: what it is and how it works

The means-tested care fee is an additional contribution toward your care costs based on your income and assets. Not everyone pays it — and the amount varies for everyone who does.

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6 min readUpdated April 2026Free for families
Means-tested
Based on income and assets
Capped
Annual and lifetime cap applies
Free
WithSally guidance
Services Australia
Assesses your contribution
The short version

The aged care means test determines how much you contribute toward your care costs. It assesses your income and assets — the more you have, the more you may contribute.

Full age pensioners often pay little or no means-tested fee. Self-funded retirees with significant assets typically pay more. There are government caps on the total amount anyone can be asked to pay.

Note: everyone in residential care also pays a basic daily fee — currently $61.96 per day (85% of the single aged pension). This is separate from and in addition to any means-tested contribution.

What does the means test assess?

Services Australia assesses two things: your income and your assets. Both affect the calculation — you are assessed on whichever produces the higher contribution.

Income includes
Age pension
Superannuation withdrawals
Investment income
Rental income
Other regular income
Assets include
Bank accounts and savings
Shares and managed funds
Investment properties
Superannuation balances
The family home (partially — see below)

What about the family home?

The family home is exempt from the assets means test for up to two years after entering care, provided a protected person (spouse, dependent child, or carer) is still living there. After that period, partial value may be assessed. This is a complex area — specialist financial advice is essential before selling or retaining the family home.

Are there caps on how much I can be asked to pay?

Yes — the government sets both an annual cap and a lifetime cap. Once you reach either cap, you pay no further means-tested fee, even if you continue in care.

For residents who entered care before 1 November 2025
Annual cap
$35,910.43
Per care-anniversary year. Once reached, means-tested fee drops to $0 for the rest of that year.
Lifetime cap
$86,185.23
Once reached, you never pay means-tested fees again, no matter how long you remain in care.
For residents entering care from 1 November 2025

The fee structure changed on 1 November 2025. The means-tested care fee was replaced by two separate contributions:

Non-Clinical Care Contribution
Up to $107.32 per day, capped at $137,917.01 over your lifetime or 4 years (whichever comes first).
Hotelling Contribution
Up to $12.55 per day ($4,580.75 per year). Covers meals, cleaning, and other hotel-style services.

All fee amounts are indexed and adjusted by the government in March and September each year. The figures above are current as at 20 March 2026. Confirm current rates with Services Australia (1800 227 475).

How is the means-tested fee calculated?

Services Australia runs the means assessment and calculates your individual contribution. The process involves:

1
Assessing your total assessable income across all sources
2
Assessing your total assessable assets (with certain exclusions and thresholds)
3
Running both income and assets calculations and applying whichever produces the higher contribution
4
Applying the annual and lifetime caps to your calculation
5
Issuing a written notice of your fee — this is your actual daily contribution amount

What WithSally can and cannot help with

WithSally helps families find the right facility and understand the care process. Financial planning — including means test modelling — is outside our scope.

We strongly recommend speaking with a financial adviser who is specifically accredited in aged care before your means assessment. The decisions made early can have lasting implications.

How WithSally helps

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