What you need to know about the income test fee

What is an income tested fee for Home Care Packages?

When choosing a Home Care provider, there’s a lot to consider.

Determining the budget for which you have to spend on your home care is essential. In order to answer this, you need to work out:

• How much will you get from the government?
• Is the income tested fee applicable, and how much it will be?
• Are there any additional fees agreed to with your provider?

If you’re applying for a Home Care Package, you may have to pay an income tested care fee. To work out if you need to pay this fee, and how much it will be, you need your income assessed.

There are a few important facts to know about the income tested care fee:

• the income tested fee is different for everyone and can be assessed by Services Australia, Centrelink, or Department of Veterans’ Affairs (DVA)
• The government subsidy is then reduced by the same amount as your income test fee. Therefore, added together, they make up the total Home Care Package.
• the income test fee is determined by the government using an income test, sometimes called a means test
• income tested fee amounts change with indexation on both the 20th of March and September each year
• if your financial situation changes, you can arrange for a new means test assessment
• the fees are reviewed every 3 months and you will be notified in writing if there are any changes
• clients on a full pension and people with an annual income up to $32,819.80 will not need to pay an income tested fee
• self-funded retirees will most likely have to pay an income test fee
• if you choose not to complete an income test (means test) you will likely have to pay the highest income test fee

How is the income tested fee determined?
The fee is different for everyone. The income tested fee is assessed according to your annual income (including the pension), living situation and relationship status.

He amounts do change over time however, as of 20^th June 2024, the amounts are as follows:

You could pay up to $18.30 per day, if you:

• are single earning over $32,819.20
• are a member of a couple living together earning over $25,420.20
• are a member of a couple living apart due to illness earning over $32,195.80

You could pay between $18.30 – $36.60 if you:

• are single earning over $63,351.60
• are a member of a couple living together earning over $48,432.80
• are a member of a couple living apart due to illness earning over $62,727.60

If you’re in the early stages of researching Home Care Packages, you or your loved one might like to find out an initial cost estimate to help with discussions and decision-making.

The government’s income test fee estimator is a great tool for this.

Who gets the fee?
The income tested fee is payable directly into your chosen Home Care Provider and becomes part of your available Home Care Package funds..

Why do I have to pay for it?
While the government subsidises the cost of home care, to make this sustainable for our eligible population, it asks for contributions from those who can afford it.

The good news is, these costs are capped on an annual and lifetime basis, making affordability and planning easier.

There’s a lot to think about. Where can I find out more about the income test fee?

Understanding the different fees related to Home Care Packages can feel overwhelming.

A simple question to ask one of our care advisors is “Once all of the fees are deducted, how many hours of care am I left with per week?”

From there, you’ll have a clear picture of how the needs of your loved one will be met for their available budget.

You can also visit myagedcare.gov.au for more information on the income tested fee and related topics.

Once you have been approved for a Home Care Package and know what your income test fee will be, you can head to our budgeting tool on our website to work out your Home Care Package annual budget.

If you would like to find out more about pricing, fees, and the care options available with Yellow Door Care, you can speak to us directly on 8362 3033.