Aged Care Means Test 2026 Australia: Thresholds, How It Works, Form SA457

An additional contribution from residents with income or assets above the safe-harbour thresholds. Combines income-tested + asset-tested components. Range: $0-$92.04/day in 2026. Capped at $33,575/year and $80,584 lifetime. Most residents pay $0-$50/day.

50% of income above the income-free area. Example single resident with $40,000 income: $40,000 - $33,508 free area = $6,492 excess × 50% = $3,246/year income-tested fee ($8.89/day).

Three tiers above the $61,500 asset-free area: Tier 1 (17.5%) applies to assets $61,500-$206,663. Tier 2 (1%) applies to $206,663-$498,889. Tier 3 (2%) applies above $498,889. Annual contributions added together; capped at $33,575/year and $80,584 lifetime.

Generally counted: bank deposits, term deposits, shares, managed funds, investment properties, business assets, household contents (deemed value), vehicles, superannuation in account-based pension. Generally NOT counted: family home (if protected — see below), some lifetime annuities purchased pre-2007, personal effects (modest value), gifts within allowable gifting limits ($10k per year, $30k over 5 years).

The family home is exempt from the asset test if a "protected person" remains living there: (a) your spouse, (b) a dependent child, (c) a "close relative" carer who has lived in the home 2+ years, (d) any carer who has lived in the home 5+ years. If exempt, the home value does NOT count toward the asset test. If no protected person remains, the home counts UP TO $206,663 (the asset cap for aged care purposes) — even a $3M home only counts as $206,663.

Services Australia form "Aged Care Calculation of your cost of care". Available online via servicesaustralia.gov.au or paper form at Centrelink. Sections: (1) personal details + Medicare number, (2) financial information — income from all sources, asset values, real estate, super balance, (3) family home status + protected person, (4) gifting history (last 5 years), (5) signature + Centrelink consent. Submit BEFORE signing a resident agreement. Free. Centrelink processes in 4-8 weeks. Result valid 2 years.

You'll be assumed to be at the maximum means-tested fee rate ($92.04/day = $33,575/year cap) — even if your actual income + assets would result in $0 means-tested fee. Submit the form FIRST. The few-week processing wait is worth potentially $30,000+ in saved fees.

For couples where one enters care + one remains at home: only the entering partner is means-tested. The remaining partner's income + assets are excluded UP TO the protected income/assets allowance. The family home is exempt (the remaining partner is a "protected person"). For couples where both enter care: each is individually assessed; the income-free area is the couple rate ($51,892); the home loses protection if neither protected person remains.

$80,584 maximum total means-tested fees a resident pays across their lifetime. Once reached, the resident stops paying means-tested fees forever. Typical timeline to reach the lifetime cap: residents at the annual cap ($33,575/year) reach lifetime cap in ~2.4 years. Many residents never reach it (their annual fee is much lower).

Yes. If you believe the assessment is wrong, request a review from Services Australia within 13 weeks of the original notification. Common appeal grounds: misvalued assets (provide updated valuations), undisclosed exemptions (e.g. lifetime annuities pre-2007), errors in income calculation. Free; lodge via mycarematters.com.au or Centrelink. If unsuccessful, escalate to the Administrative Appeals Tribunal.