3.2.3 Means tested care fee | Compensation and Support Reference Library, Aged Care Means Testing, 3 Residential Aged Care Fees and Payments, 3.2 Residential Aged Care Fees

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3.2.3 Means tested care fee

Residents with sufficient income and assets who entered into care after 1 July 2014 may be charged a means tested care fee.

Australian former prisoners of war are exempt from paying the means tested care fee.

3.2.3.1 How is the means tested care fee calculated

A resident’s assessable income and assets are applied to determine an income tested amount (ITA) and an asset tested amount (ATA). These amounts are added together to produce a means tested amount (MTA). The resident’s MTA is then compared to the maximum Government Supplement available to the aged care home to determine how much the person needs to pay in means tested care fees. 

DVA delegates provide the ITA and ATA to the DHS who then calculate the MTA in accordance with the Aged Care legislation.

3.2.3.2 Cap for means tested care fees

An annual cap of $25,000 will apply to a resident's means tested care fees, together with a lifetime cap of $60,000. These amounts will be indexed. If someone transfers to residential care from Home Care, the income-tested care fees they have paid in Home Care will count towards their annual and lifetime residential care caps, and vice versa.

3.2.3.3 Variation in means tested care fees

Changes in both income and assets will result in changes to the means tested care fee. DVA will use the information collected for income support payment purposes to update a resident’s income and assets for aged care purposes. A self-funded retiree should advise Centrelink (or DVA if applicable) of any changes in their circumstances.