Aged Care
What Is the Maximum Means Tested Fee for Aged Care? (Updated 20 September 2026)
Quick Answer
The maximum means tested fee depends on when your parent entered care. From 20 September 2026, people who entered before 1 November 2025 pay at most $37,055.98 a year, with an $88,934.57 lifetime cap. People entering from 1 November 2025 pay up to $109.45 a day in non-clinical care contributions, capped at $140,652.80 or four years.
All figures checked against the Department of Health schedule of fees from 20 September 2026
If you are helping a parent into an aged care home, one of the first questions is how much the means tested part of the fees could cost. The answer depends on when your parent entered care. People who entered before 1 November 2025 pay a means tested care fee with annual and lifetime caps. People entering from 1 November 2025 pay a hotelling contribution and a non-clinical care contribution instead, each with its own caps.
This guide explains the maximum means tested fee for aged care under both systems, how Services Australia works it out, the current thresholds, and how the caps protect families. Fees and caps change on 20 March and 20 September each year, so always confirm your own figures with Services Australia.
New system maximums (entered care from 1 November 2025)
- Hotelling contribution: $22.15 a day
- Non-clinical care contribution: $109.45 a day
- Non-clinical lifetime cap: $140,652.80 or 4 years
Old system maximums (entered care before 1 November 2025)
- Means tested care fee annual cap: $37,055.98
- Means tested care fee lifetime cap: $88,934.57
- Basic daily fee for everyone: $68.93 a day
What Is the Means Tested Fee in Aged Care?
Residential aged care fees have several parts. Everyone pays the basic daily fee, which covers everyday living costs and is set at 85% of the single basic Age Pension. Clinical care, such as nursing, is fully funded by the government. The other contributions depend on a means assessment of your parent’s income and assets by Services Australia. These are the “means tested” fees.
Not everyone pays them. People with lower income and assets may pay only the basic daily fee, and may have their accommodation costs fully or partly paid by the government as a supported resident. Only people with higher income or assets reach the maximum amounts. For an overview of every fee, see our guide to aged care home fees in Australia.
Who Actually Pays the Maximum?
Reaching the maximum depends on the daily means tested amount. People who receive a full Age Pension and have modest assets usually pay little or nothing beyond the basic daily fee. Those with significant savings, investments or a valuable home that is not occupied by a protected person are more likely to pay the higher contributions, at least until the caps are reached. Because the home is only counted up to $219,858.40, other assets such as cash, shares and investment property usually make the biggest difference.
Which System Applies to Your Parent?
| Your parent’s situation | Fee arrangements |
|---|---|
| Entered permanent residential care between 1 July 2014 and 31 October 2025 | Old system: means tested care fee |
| Entered permanent residential care from 1 November 2025 | New system: hotelling and non-clinical care contributions |
| Already in care before 1 November 2025, then moves to a new home | Usually stays on the old arrangements, but check with Services Australia |
The Maximum Means Tested Fee Under the New System
For people entering care from 1 November 2025, the old means tested care fee was replaced by two separate contributions. According to the Department of Health, Disability and Ageing schedule of fees from 20 September 2026, the maximums are:
HOTELLING CONTRIBUTION
$22.15 / day
Towards meals, cleaning, laundry and utilities
NON-CLINICAL CARE CONTRIBUTION
$109.45 / day
Towards personal care and lifestyle services
COMBINED MAXIMUM
$131.60 / day
On top of the $68.93 basic daily fee and accommodation
The non-clinical care contribution has two caps. It stops once your parent has paid a lifetime total of $140,652.80, or after four years of paying it, whichever comes first. Both the daily and lifetime caps are indexed on 20 March and 20 September.
How quickly can the lifetime cap be reached?
At the maximum rate of $109.45 a day, the $140,652.80 lifetime cap would be reached after about 1,285 days, or roughly 3.5 years, before the four-year cap. These figures change with indexation, so this is a guide only.
Contributions paid under the Support at Home program for non-clinical services also count towards the same lifetime cap. Our guide to the non-clinical care contribution explains it in more detail. Optional extras are separate again and are covered in our guide to higher everyday living fees.
The Maximum Means Tested Fee Under the Old System
For residents who entered care between 1 July 2014 and 31 October 2025, the means tested care fee still applies. From 20 September 2026, the department’s schedule sets these caps:
ANNUAL CAP
$37,055.98
Once reached, the fee stops until the next anniversary of entering care
LIFETIME CAP
$88,934.57
Once reached, no more means tested care fees are ever paid
Averaged across a full year, the annual cap works out to roughly $102 a day. The daily fee itself is also limited by the cost of your parent’s care. Income tested fees paid under the old Home Care Packages program also count towards the old lifetime cap.
Old System vs New System at a Glance
| Old system (before 1 Nov 2025) | New system (from 1 Nov 2025) | |
|---|---|---|
| Basic daily fee | $68.93 a day | $68.93 a day |
| Means tested care costs | One means tested care fee | Hotelling contribution plus non-clinical care contribution |
| Annual cap | $37,055.98 | No annual cap. Daily caps of $22.15 and $109.45 instead |
| Lifetime cap | $88,934.57 | $140,652.80 or 4 years (non-clinical care only) |
| Clinical care | Government funded | Government funded |
How Services Australia Works Out the Means Tested Amount
Services Australia calculates a daily means tested amount using your parent’s assessable income and assets. The basic formula is the same for both systems:
Means tested amount = (income component + asset component) ÷ 364
Income component. 50% of assessable income above the income free area. From 20 September 2026, the income free area is $36,454.60 a year for a single person and $35,726.60 each for an illness-separated couple.
Asset component. A percentage of assessable assets above the asset free area of $66,500. The rates differ between the two systems:
New system (from 1 Nov 2025)
Old system (2014 to Oct 2025 entrants)
Thresholds from 20 September 2026. Sources: Department of Health, Disability and Ageing schedule of fees; Colonial First State and MLC adviser fact sheets.
How the Family Home Is Counted
If your parent keeps their home after moving into care and no protected person lives there, only part of its value is counted. According to My Aged Care, a capped amount of $219,858.40 (as of 20 September 2026), or the home’s net market value if lower, is included in the means assessment. For a couple, each partner is treated as owning half, and the cap applies to each half.
The home is not counted at all if a protected person lives there, such as a partner or dependent child, an eligible carer who has lived there for at least two years, or an eligible close relative who has lived there for at least five years. Read more in our guide to what happens to your home when you go into aged care.
A Simple Example of the Asset Calculation
Consider a single person entering care under the new system, with a home counted at the capped $219,858.40 and $80,000 in other assessable assets. That gives total assessable assets of $299,858.40.
If this person’s income is below the income free area, the income component is nil, so the daily means tested amount would be $29,478.68 ÷ 364, or about $80.98. Services Australia then uses this amount to work out what the person pays towards accommodation, the hotelling contribution and the non-clinical care contribution. This example is a simplified illustration only. Your parent’s actual fees come from their formal assessment.
What the Means Tested Fees Do Not Cover
The means tested contributions are only part of the overall cost. Your parent may also pay:
- Accommodation costs: a refundable accommodation deposit, a daily accommodation payment or a mix, unless they qualify for government help with accommodation.
- Optional extras: services above the standard, charged as higher everyday living fees and only by agreement after moving in.
- Personal items: such as hairdressing, newspapers or a private phone line, if not included by the home.
Caps on means tested contributions do not apply to these costs. The basic daily fee, the hotelling contribution and accommodation costs also continue after the non-clinical care contribution stops, so it is worth planning for the long term.
Can the Fees Change After Your Parent Moves In?
Yes. Services Australia reviews the means assessment regularly and when circumstances change, such as selling the home, a change in investments or the death of a partner. Fees and thresholds are also indexed twice a year. Your parent’s provider should give regular statements showing what has been charged, and your parent can ask Services Australia to review an assessment if they believe it is wrong.
Practical Tips for Managing Means Tested Fees
Complete the means assessment. If you skip it, your parent may be charged the maximum amounts and asked to pay the full room price. Lodge it early, because processing can take several weeks.
Use the fee estimator. The My Aged Care fee estimator gives a useful guide before you choose a home. Our guide to the aged care fee calculator explains how to use it.
Report changes promptly. Selling the home, an inheritance or a change in superannuation can change the fees. Tell Services Australia so your parent is not overcharged or left with a debt.
Track progress towards the caps. Ask Services Australia for a running total, particularly if your parent previously paid income tested fees for home care.
Get specialist advice. The choice between a refundable accommodation deposit, a daily payment or a mix affects the overall cost. An aged care financial adviser can model the options for your family.
Clear Answers on Fees at Superior Care Group
Superior Care Group is a family-owned aged care provider that has cared for older Queenslanders for over 45 years, with residences at Wellington Point in Brisbane’s south-east and Merrimac on the Gold Coast. Our team can talk you through the fees that apply at our homes, including room prices and payment options. Visit our financial information page or call us with your questions.
Sources: Department of Health, Disability and Ageing: Schedule of fees and charges for residential care from 20 September 2026 · My Aged Care: Means assessments for residential aged care · Colonial First State and MLC adviser fact sheets (20 September to 31 December 2026). General information only, not financial advice.
