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August 15, 2026

Aged Care

Means Assessment for Aged Care: What You’ll Be Asked and Why It Matters

Working out the cost of care can feel like the most daunting part of an already emotional decision. At the heart of it sits one important step: the means assessment for aged care. This is the financial review that decides how much you contribute towards your care and accommodation, and how much the Australian Government contributes on your behalf. Understanding what you’ll be asked, and why it matters, takes a great deal of the uncertainty out of the process.

At Palm Lake Care, our Customer Experience Team guides families through this step every day. This guide explains what a means assessment involves, who carries it out, the income and assets you’ll be asked about, and how the outcome shapes your fees for residential aged care under the rules that apply from 1 November 2025.

What is a means assessment for aged care?

A means assessment for aged care is a review of your income and assets, used to work out what you can reasonably afford to pay towards your care. For most people it is completed by Services Australia. If you receive a means-tested payment from the Department of Veterans’ Affairs (DVA), then the DVA completes it instead. The result decides how the cost of your care is shared between you and the government, as explained by the Department of Health, Disability and Ageing.

It is worth clearing up a common point of confusion. The means assessment is not the same as the aged care needs assessment (now delivered through the Single Assessment System). The needs assessment looks at your health and daily living needs to confirm you are eligible for residential care. The means assessment looks only at your finances. You will usually go through both, but they are handled by different teams and answer different questions.

Why the means assessment matters

The result of your means assessment directly sets the fees you pay. It determines whether the government will help with your accommodation costs, and whether you pay a means-tested care contribution on top of the basic fees everyone pays. In short, it is the difference between being fully supported, partly supported, or funding your own room.

Completing the assessment is not strictly mandatory. However, if you choose not to provide your financial details, you will automatically be charged the maximum contribution rates, as the My Aged Care means assessment guidance makes clear. For most people the assessed amount is well below those maximums, so completing the assessment is almost always in your interest.

One detail is worth knowing early. Your means status is set at the date you enter a home and generally stays fixed while you remain in that same home, even if your finances change later. That makes getting the assessment right from the start genuinely important.

What you’ll be asked: income and assets

The assessment builds a full picture of your financial situation. Here is what Services Australia looks at.

Your income

Assessable income includes the age pension and other government income support, superannuation and overseas pensions, income from annuities and allocated pensions, investment earnings, and rental income. If you are already a full or part pensioner, Services Australia may already hold much of this information.

Your assets

Assets include savings and bank accounts, shares and other investments, and personal valuables. Importantly, a Refundable Accommodation Deposit (RAD) counts as an assessable asset, so the way you choose to pay for your room can affect your care fees. That is a good reason to seek financial advice before deciding.

How couples are assessed

If you have a partner, half of your combined income and assets is counted in your assessment, regardless of whose name they are held in. This applies even if you and your partner are living apart because one of you needs care.

What happens to the family home

Your former home is often the biggest question families have. If a “protected person” such as a spouse, a dependent child, or an eligible carer who has lived with you still lives there, the home is not counted at all. Otherwise, only a capped amount of its value is included, currently $214,884 (as at 20 March 2026) or the net market value if that is lower. This cap is indexed, so it is worth checking the current figure on My Aged Care.

How your assessment shapes what you pay

From 1 November 2025, new fee arrangements apply for people entering residential aged care under the Aged Care Act 2024. Your means assessment feeds into several of these:

Basic Daily Fee: everyone pays this towards everyday living costs such as meals, laundry and cleaning. It is set at 85% of the single basic age pension.
Hotelling Contribution: a contribution towards services such as catering, cleaning and gardening, currently up to about $22 a day, for those assessed as able to afford it.
Non-Clinical Care Contribution (NCCC): the government now fully funds clinical care, while those with the means contribute towards non-clinical care such as help with bathing and mobility. A lifetime cap of $130,000 (indexed) or four years, whichever comes first, limits how much you will ever pay.
Accommodation costs: depending on your assessment, the government may cover some or all of your room, or you may pay for it yourself through a Refundable Accommodation Deposit, a Daily Accommodation Payment, or a combination of both.

You can see how these fees fit together, and the payment options available to you, on our get started page. To estimate your own likely fees before you commit, the My Aged Care fee estimator is a helpful starting point.

What happens after your assessment

Once your assessment is complete, Services Australia sends you a fee advice letter. This letter confirms whether you qualify for government assistance and sets out the contributions you will be asked to pay. Your aged care home will ask to see it so they know what support applies to your accommodation.

Two things are worth remembering. First, a fee advice letter is valid for 120 days, so if you do not enter care within that window you may need a fresh assessment. Second, if you believe the outcome is wrong, you have the right to ask Services Australia (or the DVA) to review the decision.

How to prepare for your means assessment

A little preparation makes the process much smoother:

Gather recent statements for your income, savings, superannuation and investments.
If you own property, have the details ready, including who lives there.
Complete the relevant Services Australia form. Self-funded retirees generally complete the Aged Care Calculation of your cost of care form, while pensioners who own a home complete a property details form. You can apply online through myGov, by post, or with help over the phone through Services Australia.
Consider speaking with a financial adviser who specialises in aged care, particularly before deciding how to pay for your room.
Start early if you can. You are able to complete the assessment up to 120 days before moving in.

If it all feels like a lot, you do not have to work it out alone. Our Customer Experience Team can walk you through each step using our quoting tool, tailored to your individual circumstances.

Frequently asked questions

Is a means assessment for aged care compulsory?

No, but if you do not complete one you will be charged the maximum contribution rates. Since most people are assessed to pay less than the maximum, completing it usually works in your favour.

Who carries out the means assessment?

Services Australia completes it for most people. If you receive a means-tested payment from the Department of Veterans’ Affairs, the DVA completes it instead.

Is the family home always counted?

Not always. If a protected person such as a partner still lives there, the home is excluded. Otherwise, a capped portion of its value is included in your assessment.

How long does the fee advice letter last?

Your fee advice letter is valid for 120 days. If you do not enter care within that time, you will need a new assessment.

Can I get an estimate before I am assessed?

Yes. The My Aged Care fee estimator gives you a general idea of likely fees, although your actual contribution is confirmed only once Services Australia completes your assessment.