Planning aged care for yourself or a loved one involves more than just choosing the right provider — it also means understanding how your finances affect the cost of care.
In Australia, the government provides tools such as the My Aged Care Fee Estimator and the Income and Assets Checklist to help older Australians prepare for both Home Care Packages and Residential Aged Care.
This guide explains how these tools work, what information you’ll need to prepare, and how completing them properly can save you both time and stress.
Why Financial Planning Matters in Aged Care
As we age, our health and support needs evolve — and so do the financial responsibilities that come with them.
Government-subsidised aged care services are means-tested, meaning that your income and assets help determine how much you’ll contribute to your care costs.
Taking time to prepare your financial information early ensures:
- Fewer surprises when it comes to fees
- Smoother access to government funding
- Less stress for your family during transition
Many older Australians delay this step, only to find that incomplete or inaccurate details can delay their access to services or lead to higher costs than expected.
What the Income and Assets Checklist Is
The Income and Assets Checklist is a structured worksheet developed by My Aged Care to help you organise key financial details before using the Fee Estimator or undergoing a formal financial assessment by Services Australia or the Department of Veterans’ Affairs (DVA).
It’s designed for two key purposes:
|
Purpose |
Description |
|
1. Fee Estimation |
Helps estimate the cost of Home Care Packages or Residential Aged Care using My Aged Care’s Fee Estimator. |
|
2. Formal Assessment Preparation |
Prepares you for the official income and assets assessment conducted by Services Australia or DVA for subsidy eligibility. |
By filling out this checklist accurately, you’ll be better prepared for both processes and ensure that your estimates align closely with your official results.
What Information You’ll Need
Depending on the type of aged care you’re applying for, the checklist covers different categories:
|
Care Type |
Information Needed |
|
Home Care Packages |
Focuses on income and financial assets only (e.g., pensions, savings, investments). |
|
Residential Aged Care |
Includes full disclosure: income, financial assets, property, vehicles, and liabilities. |
Let’s explore each category in detail below.
Income Details: What to Include
When calculating your aged care contributions, “income” doesn’t just mean your taxable income. The checklist follows the assessment rules used by Services Australia and DVA, which include several different income types.
|
Income Type |
What to Include |
|
Government Payments |
Age Pension, Service Pension, or Carer Payment (but exclude Rent Assistance and DVA Disability Compensation Payments). |
|
Rental Income |
Net income after deducting property expenses such as mortgage interest, council rates, and insurance. |
|
Business or Self-Employment Income |
Net income after business expenses, but before tax. |
|
Superannuation Income Streams |
Account-based pensions, annuities, or market-linked pensions. |
|
Overseas Income |
Foreign pensions or rental income (converted to AUD). |
|
Trusts or Private Companies |
Any income distributed to you from these entities. |
|
Other Income |
Wages, life insurance payments, or home equity release income. |
💡 Tip: When in doubt, it’s better to declare an income source and let Services Australia determine whether it’s assessable.
Assets: What to Disclose
Assets are equally important in determining your aged care contributions.
The government classifies them into financial, real, and physical assets.
Financial Assets
Include:
- Bank accounts (savings, cheque, term deposits)
- Shares, bonds, managed investments
- Superannuation balances (if over pension age and not yet drawing income)
- Cash, gold, and bullion
- Gifts exceeding $10,000 in one year or $30,000 over five years
Real Property (Residential Aged Care Only)
- Principal home value (partly assessed depending on occupancy)
- Investment properties
- Retirement village entry contributions
- Any outstanding mortgages on these properties
Physical and Personal Assets
- Vehicles (car, boat, caravan)
- Art, antiques, or collectibles
- Household contents (usually valued at $10,000 by default)
How the Family Home Is Treated
Your principal residence is a key factor in the means test for residential aged care.
From 1 July 2025, the capped value of the home that can be counted is $206,663.20 or the home’s net market value — whichever is lower.
If you have a partner, this value is divided equally between you.
The home is exempt from assessment if it is occupied by:
- Your spouse or dependent child
- A carer (on an income support payment) who has lived there with you for at least two years
- A close relative (on an income support payment) who has lived with you for at least five years
This rule helps protect the living arrangements of family members who depend on your home.
Debts and Liabilities
Only secured debts (those tied to an asset) are included in your financial disclosure.
Examples include:
- Mortgages on property
- Car loans secured against the vehicle
Do not include:
- Unsecured personal loans
- Credit card debts
- Informal family loans
Being clear about which debts to include ensures your estimated care costs are realistic and fair.
How to Use the My Aged Care Fee Estimator
Once you’ve gathered your financial information, you can use the Fee Estimator on the My Aged Care website.
It will provide an indicative estimate of potential fees for:
- Home Care Packages (including income-tested care fees)
- Residential Aged Care (daily fees, means-tested care fees, and accommodation costs)
Keep in mind:
This is only a guide, not an official assessment. Actual fees are confirmed after Services Australia completes your formal evaluation.
🔗 Visit: www.myagedcare.gov.au
Preparing for the Formal Assessment
A formal Income and Assets Assessment is mandatory before starting government-subsidised care.
This assessment determines:
- Whether you qualify for subsidies
- The amount you must contribute
- Eligibility for accommodation supplements
You’ll need to submit documents such as:
- Latest pension statements
- Bank and investment summaries
- Property and mortgage details
- Proof of liabilities
Processing may take several weeks, especially for complex financial cases — so early preparation is key.
Common Mistakes to Avoid
- Missing or Incorrect Income Sources – e.g., forgetting foreign pensions or trust income.
- Outdated Valuations – always use current market values for properties and vehicles.
- Overlooking Gifts or Transfers – large gifts can still be counted as assets.
- Listing Unsecured Debts – only secured liabilities matter for the assessment.
- Inconsistent Information – ensure figures match your formal records and Centrelink data.
Avoiding these errors can save weeks of delays and prevent unexpected care costs.
When to Seek Professional Help
For individuals with complex finances (like self-managed super funds, multiple properties, or business ownership), it’s wise to consult:
- An accountant experienced in aged care financial assessments
- A financial adviser specialising in retirement or aged care
They can ensure your information is accurate and that you understand how fees and contributions are calculated.
How Early Planning Reduces Stress
Starting early gives you time to:
- Organise documents without pressure
- Make informed choices about selling or retaining assets
- Discuss financial decisions openly with your family
Even if you’re still independent, preparing now ensures your care journey will be smoother in the future — especially when applying for Home Care Packages or Support at Home under upcoming reforms.
Final Thoughts: Simplifying the Process with the Right Help
Navigating aged care finances can be overwhelming, especially with complex rules and frequent policy changes.
Having guidance and clarity can make all the difference.
How SSCA Can Help
At Support Services Connect Australia (SSCA), we’ve spent over 25 years helping older Australians and their families navigate the aged care system with confidence.
Our free care finding service connects you with trusted providers who match your needs, preferences, and location — whether you’re seeking in-home care or exploring residential options.
We also collaborate closely with our Connected Partners through Engagement and Onboarding, ensuring your transition to care is seamless and respectful.
By simplifying every step — from funding applications to provider matching — SSCA helps you make informed decisions, with less stress and more peace of mind.