Learn the crucial differences between income and means assessments for aged care in Australia, including what’s assessed and how it affects your fees.
Key areas covered:
- What is the difference between an income assessment and a means assessment?
- How does an income assessment affect home care fees?
- How does a means assessment affect residential care fees?
What is the difference between an income assessment and a means assessment?
An income assessment only looks at your income to determine fees for home care services, while a means assessment considers both your income and assets to determine fees for residential aged care. The means assessment is more comprehensive and is used to calculate the daily means tested amount for residential care.
How does an income assessment affect home care fees?
For home care, the income assessment determines your income tested amount by comparing your total assessable income to various thresholds. If your income is below the free area, you pay nothing. Above that, you may pay 50% of income over certain thresholds, calculated on a daily basis.
How does a means assessment affect residential care fees?
A means assessment for residential care considers both your income and assets to calculate your daily means tested amount. This amount is the sum of your income tested amount and asset tested amount, which determines your contributions toward accommodation, hotelling and non-clinical care costs.
