Learn what income is assessed for aged care means testing in Australia, including Social Security Act provisions, excluded amounts, and assessment.
Key areas covered:
- What is the purpose of income assessment in aged care?
- Are there any income amounts excluded from the assessment?
- How is income assessed for residential aged care?
What is the purpose of income assessment in aged care?
Income assessment determines the participant contribution rate for aged care services. Services Australia completes this assessment to calculate how much an individual needs to contribute towards their care costs, with the assessment considering both income and assets to determine appropriate fees and contributions.
Are there any income amounts excluded from the assessment?
Yes, the rules may prescribe certain amounts to be excluded from income determinations for specified kinds of individuals. However, some amounts that would normally be excluded under the Social Security Act 1991 will be included when calculating total assessable income for aged care purposes.
How is income assessed for residential aged care?
For residential aged care, means testing rules apply to determine individual contributions and fees. The assessment considers the person’s income to calculate their daily means tested amount, which determines whether they pay an accommodation payment or contribution. There is also a lifetime contribution limit, after which no further contributions are required.
