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3.4.3 Income-Tested Fee
Residents with sufficient assessable income may be charged an income-tested fee from their date of entry, for residents entering care on or after 1 January 2010 and before 1 July 2014. For those who entered care prior to this date (including those on pre-entry leave), the income-tested fee did not apply for the first 28 days of occupancy. Residents who have continuously been a permanent aged care resident since before 1 March 1998 are exempt from paying an income-tested fee.
18.104.22.168 Amount of income-tested fee
The amount of the income-tested fee is equal to 5/12 of the care recipient’s ‘total assessable income’ above the ‘total assessable income free area’. However, a resident cannot be asked to pay more than the cost of their care. A maximum income-tested fee amount is also prescribed in the Aged Care legislation.
44-21 The income test – Aged Care (Transitional Provisions) Act 1997
22.214.171.124 Variation in income-tested fees
Changes to a person’s income will result in changes to the income-tested fee. DVA will use the information collected for income support payment purposes to update a resident’s income for aged care purposes.
A self-funded retiree should advise Centrelink (or DVA if applicable) of any changes in their circumstances.