Low means aged care: when the government pays the room

What happens if Mum or Dad can't afford an aged care home?

If their income and assets are low, Services Australia's assessment classes them as "low means" and the government pays some or all of the room. With income under $36,454.60 and assets under $66,500 (as at 20 September 2026), the government pays the whole room and the person pays the basic daily fee of $68.93 a day. Above that, they may pay a contribution towards the room, never the home's full room price.

Who counts as low means

Services Australia works out a "means tested amount" from the person's income and assets (the method is set out in our fee estimator). If it is under $73.73 a day, the person has low means. As a guide, for a single person, using the thresholds as at 20 September 2026:

Income under $36,454.60 a year and assets under $66,500: low means, and the government pays the whole room.
With income under $36,454.60, a person stays low means with assets up to about $266,000.
With assets under $66,500, a person stays low means with income up to about $105,000.
With both income and assets above the free areas, the line comes sooner. For example, income of $40,000 and assets of $120,000 give a means tested amount of $30.59 a day: low means.

The family home counts only up to $219,858.40, and not at all while a protected person (a partner, a dependent child, or an eligible carer or close relative) lives there. Our fee estimator works through a single person's figures, and Services Australia's assessment gives the official answer.

What a low-means resident pays

The basic daily fee: $68.93 a day (about $25,159 a year), the same for every resident. It is 85% of the single basic age pension.
An accommodation contribution, if any: the lowest of their means tested amount, the government's accommodation supplement for that home on that day, and the agreed room price as a daily amount. It can be paid daily, as a refundable lump sum, or both.
No hotelling or non-clinical care contribution for people who moved in from 1 November 2025.
Optional extras only if agreed. A higher everyday living fee can't be a condition of entry and can't be agreed before moving in.

Everyone, low means or not, agrees a room price with the home before moving in. For a low-means resident, that price matters only as a ceiling on the daily contribution.

Getting the assessment

Make sure the aged care assessment approves permanent residential care (through My Aged Care, 1800 200 422).
Get the means assessment. Pensioners: Services Australia already holds their income and assets details, but if they own a home they complete form SA485 about it. Others complete form SA457. Without an assessment, a person can be asked to pay the maximum.
The fee advice letter says whether they are low means and the most they can be asked to contribute. Homes ask to see it.

Services Australia's aged care line is 1800 227 475. The Financial Information Service (132 300) explains how these rules apply to a family's situation, at no cost.

Finding a home

Ask each home on your list whether it has a room for a resident who is eligible for government help with accommodation, and what it would be. Judge homes on their Star Ratings, the sub-ratings and how a tour feels, not the published room price, which a low-means resident doesn't pay.

If the fees still can't be paid

If someone can't afford their fees for reasons beyond their control, they can apply to Services Australia for financial hardship assistance. If eligible, the government pays some or all of the basic daily fee, means tested care fee or accommodation costs.

Questions about low means aged care

Can an aged care home ask a low-means resident for the full room price?

No. If Services Australia's assessment finds the person has low means, the government pays some or all of the room to the home, and the person pays at most an accommodation contribution that Services Australia works out. They still agree a room price with the home before moving in, as everyone does.

What does a low-means resident pay each day?

The basic daily fee, $68.93 a day (as at 20 September 2026), plus any accommodation contribution. With income under $36,454.60 and assets under $66,500, the contribution is $0 and the government pays the whole room. Low-means residents who moved in from 1 November 2025 do not pay the hotelling or non-clinical care contributions.

Is the care any different for a low-means resident?

No. The same Aged Care Quality Standards apply to every resident, and for people on the 1 November 2025 arrangements the government fully funds clinical care such as nursing. A home's Star Rating covers the whole home, whoever is paying for the room.

Does the family home have to be sold?

There is no rule that it must be. If it is kept, it counts in the means test only up to $219,858.40 (as at 20 September 2026), and not at all while a partner, dependent child or eligible carer or relative lives there. If it is sold, the money from the sale counts in full. Whether to sell, keep or rent is a decision to take to a licensed financial adviser or the Financial Information Service (132 300).

Can family help pay?

Family can pay towards accommodation, but a lump sum paid by family is counted as the resident's asset in the aged care means test, so it can change their fees. It is worth getting financial and legal advice before family money goes in.

Does low means status change later?

Not while the person stays in the same home: it is set from their income and assets at entry. If their means rise later, the contribution amounts can rise, but the type of accommodation cost stays the same. Moving to a different home means a new means assessment, and the status can change then.

General information only

General information only. This page explains how aged care fees and accommodation payments work, using the rates and rules published by the Australian Government as at 20 September 2026. It is not financial, legal or tax advice, and it doesn't take anyone's personal circumstances into account. The fees a person actually pays are worked out by Services Australia after an income and assets assessment, and the accommodation price is agreed with the home in an accommodation agreement (it can't be more than the home's published price). Rates change several times a year. For an official estimate, use the fee estimator on My Aged Care (myagedcare.gov.au, 1800 200 422). For free information about your options, call the Services Australia Financial Information Service on 132 300.

We're not financial advisers. Best Aged Care (Boring Ventures Pty Ltd) does not hold an Australian Financial Services Licence or an Australian credit licence and is not a registered tax agent. We give factual information about how aged care fees and payment options work. We don't recommend how to pay accommodation costs (a RAD, a DAP or a mix), whether to sell, keep or rent the family home, how to arrange assets, or which financial, superannuation, insurance, credit or investment products to use. For those decisions you can call the free Financial Information Service on 132 300, see a licensed financial adviser who specialises in aged care, or speak to a lawyer about powers of attorney and contracts.

If you'd like, we can give you the names and contact details of licensed financial advisers who work in aged care. We don't receive any fee, commission or other benefit from them or anyone else we mention, and their advice is their responsibility, not ours. Before you engage an adviser, check them on the Financial Advisers Register at moneysmart.gov.au.

Sources

Last reviewed October 2026. Fee figures are as at 20 September 2026 unless another date is shown next to them. General information only, not financial, legal or medical advice. We are not a government service. How we check our facts.