What is the Income Tested Fee?
If you are a self-funded retiree or on the part pension you may be required to pay what is called the ‘Income Tested Fee’.
What is the Income Tested Fee?
The Income Tested Fee is a fee that care recipients of the Home Care Package may be required to pay if they are self-funded retiree or on the part pension. Full pensioners generally do not need to pay this fee. It is different from basic daily fee which Providers can elect to charge a recipient and is instead government mandated.
The Income Tested Fee depends on the person’s income, and it varies for each individual. That’s why if you are on the full age pension you are not required to pay it. Essentially, it represents your contribution to your Home Care Package funding, so if eligible for this fee, it forms part of your total care funding, alongside the government’s contribution.
This fee is determined based on a new assessment, separate to the one you will have with ACAT, facilitated by Services Australia. It will be an income assessment and Services Australia will review this for you every three months. If you are assessed as being required to contribute this fee, it will need to be paid to your Home Care Package Provider to supplement your total assessed funding.
How does the Income Tested Fee work?
The Income Tested Fee you pay will be based on an income assessment by Services Australia. If the outcome of your assessment requires you to pay an Income Tested Fee, you will have to pay this to your Home Care Package Provider, the Provider is unable to waive this fee.
How does it work?
Your contribution + Government contribution = Home Care Package Level Funding.
Example:
Let’s say we have three clients who have a Level 2 Home Care Package. Each week their package is worth $309.68. However the clients have the following Income Tested Fee each:
Client 1: $2 a day
Client 2: $15 a day
Client 3: No Income Tested Fee
Here’s how it works for their weekly funding:
All three clients have the same amount of Package funding available for their care services. The difference is, where the funding has come from. The fees payable by the client is the thing that changes, range this will be reviewed on an ongoing basis if there are changes to the income of the care recipient.
Choose from a range of services.
At Let’s Get Care, we specialise in empowering you to remain living independently. As your trusted Home Care Package Provider, we’re committed to delivering top-quality home care and community support tailored to your unique needs. Our personalised Care Plans ensure each of our valued clients receives the attention they deserve. Whether you live alone, are a member of a couple living together or live with your family, we will consider your unique needs in providing your services.
Personal care
Personal care covers everyday tasks like bathing, dressing, and grooming, ensuring you're comfortable and well-cared for.
Domestic assistance
This service assists with home support tasks such as home maintenance, laundry, meal preparation, and grocery shopping, making your living environment safe and tidy.
Social support
Stay connected with your community through social groups, outings, companionship, and participation in social activities with friends and family.
Allied health & therapy
Our experienced allied health professionals offer services such as physiotherapy, occupational therapy, and speech therapy.
Nursing care
For your medical needs, our qualified nurses provide comprehensive care, including wound management, medication administration, assistance with hospital medical appointments, and health condition monitoring.
Respite care
This type of care is temporary support for caregivers, allowing them a break while ensuring their loved ones' needs are still met. If you are a member of a couple living together, one being the primary carer of the other, this can be a good service to give you both a break and help prioritise each of your health. Whether that is overnight care or a few hours of support, the home care services will be dependent on the client’s care needs.
We provide personal home care assistance across Australia.
We help our clients across Australia to get the services they need to live fulfilling, safe and healthy lives at home. When you self-manage you get the choice and control to choose who delivers your support services. Whether you choose from our broad list of care suppliers local to you or bring on your own supports, we will support you to get the best possible service from your package. If you need additional services along the way we will support you to receive them too.
How life is better with Let’s Get Care.
- More choice and control.
We will give you more choice and control to choose who delivers your home care services through your Australian government-approved package.
- Low fixed fee, nothing more.
We charge one low, fixed and transparent fee to support you. No additional fees to charge from your Home Care Package.
- Experts in self-management.
We were Australia’s first self-managed Provider and have years of experience helping our clients to get more support from their package.
Chat to a Care Expert about your management options.
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Hear from some of our happy clients!
Peter & Pearl
Melbourne
Kay & Bob
Perth
Judie & Cecilia
Perth
Gwenda
Regional NSW
How to set up care services.
We’re here assist you self managing your home care package, ensuring you receive the support required to continue living safely and happily at home, with the carers of your choice. It’s hassle-free with us.
Step 1
Start by having a chat with one of our Care Experts. Together, we'll explore the options that best align with your unique home care needs and preferences.
Step 2
Our friendly Care Experts will organise all the necessary signup documents, which you can conveniently complete online. This streamlined process gets your services up and running as seamless as possible.
Step 3
Now, you're all set to commence your services! Let's Get Care offers you the flexibility to select from our extensive list of exceptional service providers or bring your own trusted carers on board. The choice is yours, and it's as easy as that. Your home care, your way, with Let's Get Care.
FAQs.
Who calculates the Income Tested Fee?
The Income Tested Fee is calculated by the Australian Government’s Services Australia. When an individual applies for aged care services or a Home Care Package, they undergo a means-tested assessment. This assessment takes into account your yearly income and assets to determine their eligibility for government-subsidised aged care and to calculate the Income Tested Fee, if applicable. Self funded retirees and those on the part pension should generally have this assessment done.
How do I know if I need to pay an Income Tested Fee?
To find out if you need to pay an Income Tested Fee for aged care services in Australia, apply for the services through Services Australia. They’ll assess your financial situation, including income and assets, and inform you whether you’re required to contribute to the cost and the amount. Keep your financial circumstances information up-to-date, as it’s periodically reviewed. Seek advice from financial experts or our Care Experts if needed to understand your obligations.
Is the Income Tested Fee capped?
Yes, the Income Tested Fee in Australia is subject to annual and lifetime caps. These caps limit the maximum amount that an individual can be asked to pay as an Income Tested Fee over a specified period. The annual caps apply on a yearly basis, while the lifetime cap limits the total amount paid over a person’s lifetime. These caps are designed to provide financial protection and prevent excessive costs for individuals receiving aged care services. The specific cap amounts can change over time due to government policies and adjustments, so it’s essential to check the current caps with the relevant authorities or aged care providers.
What happens if my financial situation changes, do I still need to pay?
If your financial circumstances change after your initial assessment for aged care services in Australia, you must promptly report it. Services Australia then reassess your Income Tested Fee accordingly. If your individual income decreases, your fee may decrease, and if it increases, your fee may increase. Keeping your financial information up-to-date is crucial to ensure your fee accurately reflects your current situation. Failure to report changes could result in incorrect fee calculations.
Book a free tele-consultation.
Want a phone call with our team at a time that suits? Our free consultation call with a dedicated Care Expert will give you more information about Home Care Packages, our different care models, aged care and answer any specific questions you have.
We will listen to your specific care needs and explain the options available to support you to live at home. Interested in specific home care support services? Let us know.
Select a date and time between Monday – Friday, 10am – 4pm (AEST), that suits you to meet with one of our Care Experts. They will give you a call on the phone within half an hour of the time you select.
Come along with any questions you have, and we will help guide the way.