The aged care means test, explained
Services Australia looks at your parent's income and assets and works out a daily "means tested amount". That one figure decides whether the government helps with the room, and how much your parent pays in the two means-tested contributions.
By the AgedCareClear editorial team. Published 8 November 2026; last checked against the law on 8 November 2026 (what it relies on). Rates from the government schedule of 20 September 2026.
Step 1: income and assets
- Income: for a single person, half of yearly income above $36,454.60 counts (the rules, from 20 September 2026, have more bands above $90,130).
- Assets: 17.5% of assets between $66,500 and $219,858 counts, then lower rates above that.
- The home: counted up to $219,858, and not at all while a partner, or a carer or close relative who qualifies, still lives there.
- Savings and investments are assumed to earn income at set rates ("deeming"), which is added to income.
Both parts are added and divided by 364 to give the means tested amount a day.
Step 2: what that amount decides
- Under $73.73 a day: the government pays some or all of the room. Help with the room
- Above that: your parent pays the room price, then the hotelling contribution (up to $22.15 a day), then the non-clinical care contribution (up to $109.45 a day), in that order.
- The non-clinical care contribution stops for good after 1,460 days or once the lifetime cap of $140,653 is reached.
Services Australia works out the real figure for each person; ask for an aged care calculation of your cost of care. To see the effect for a room, add rough income and assets in the calculator, which follows these rules.