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Part-pensioner
What happens to my pension?
What do the care fees cover?
Basic daily care fees (more information)
Income-tested fees (more information)
Other charges
Assets assessments (more information)
Financial information
If you are a part pensioner, when you enter an aged care home you may be asked to pay an income-tested fee as well as a basic daily care fee. The Australian Government will continue to make the largest contribution to aged care costs for the great majority of residents.
In general, you will be classed as a pensioner if:
you receive an Australian Government means-tested pension or benefit from Centrelink (more information) or the Department of Veterans’ Affairs (DVA), or
you hold a current Pensioner Concession Card (PCC) (more information).
Disability and war widow’s or widower’s pensions paid by DVA are not means-tested pensions. If you receive an aged blind pension (also not means-tested) you may be asked to pay up to the pensioner rate of basic daily care fee, and can pay an additional income-tested fee up to the maximum care fee, depending on your income and level of care.
What happens to my pension?
Most pensioners will continue to receive the same amount of pension when they enter an aged care home.
Pensioner couples may receive a higher rate of pension, under the government’s special separated due to illness (more information) provisions.
If you were previously receiving rent assistance (more information), this will cease. Instead, the Department of Health and Ageing will pay a pensioner supplement amount directly to the aged care home.
If you own a home and enter care, the home will not be counted as an asset for pension purposes:
for up to two years after you enter the aged care home, or
for as long as you rent it out to pay the accommodation charge for high-level (nursing home) care, or
for as long as you rent it out to pay the accommodation bond by periodic payment in low-level (hostel) care or in an extra-service place.
For pensioner couples, a home that you own will not be counted as an asset for pension purposes while your partner is living there.
If you have questions about your pension you can phone Centrelink on 13 23 00 or contact the Department of Veterans’ Affairs (DVA)on 13 32 54 if you receive a DVA pension.
What do the care fees cover?
Your care fee is a contribution towards the cost of your care, including living expenses like meals and refreshments, cleaning, laundry, heating and cooling, as well as social activities. In addition, it contributes to the costs for nursing or personal care, including assistance with daily tasks like bathing, dressing, and using the toilet; or nursing care services, assistance with moving around, medical aids, therapy and certain medical and pharmaceutical services.
Basic daily care fees
The maximum basic daily care fee for a part-pensioner resident (more information) is $32.05 a day (This amount is indexed and may increase in line with changes in the age pension). However:
If you agree to pay an accommodation bond (more information) for entry to low-level (more information) or extra-service (more information) care, and the bond is more than $137 500, you may be asked to pay the non-pensioner basic daily care fee of up to $39.94 per day, even if you are a pensioner.
Pensioners who were living in a hostel on 30 September 1997 may pay a basic care fee of up to $29.97 per day unless they had previously agreed to pay variable fees at that hostel or have moved to a former nursing home.
Income-tested fees
You may also be asked to pay an income-tested fee, depending on your income and your level of care.
The maximum amount is generally 25% of all private income over $64 a week for single residents or $114 a week for couples (combined). As a part pensioner, you may be charged up to a maximum of $24.66 a day as an income-tested fee. This maximum fee applies to people with a private income of about $37 835 a year for single people, or $74 942 a year for couples (combined).
Income will be assessed using the same rules as for means-tested pensions.
Income-tested fees are not payable for the first 28 days in the aged care home.
The Australian Government pays the aged care home for the remaining costs of providing care.
No resident may pay more than the cost of their care. Residents at the lowest level of care, where no basic subsidy is payable by the Australian Government, will generally pay no income-tested fee whatever their income.
Other charges
Extra service charges may apply if you choose to enter the home on an extra-service basis, and you receive a significantly higher standard of accommodation services and food.
Aged care homes in some remote areas may ask residents to pay an additional remote area amount.
If you receive a workers compensation or third party insurance payment, you may be asked to pay an additional amount.
Accommodation payments (either accommodation bond or accommodation charge) may also apply.
Read more: About Accommodation payments
Assets assessments
A home may ask you to pay an accommodation payment based on your assets. An assets assessment will determine whether you are eligible for subsidised accommodation costs, and whether you may be asked to pay an accommodation bond or accommodation charge.
Read more: About Assets assessments
Financial information
Your financial decisions, for instance about how you pay an accommodation bond or charge, can have different effects on pensions, aged care fees and tax. It’s a good idea to seek expert financial information to help you make the right decisions.
A free financial information service is available through Centrelink. It provides information about using your money to best advantage and how the pension income and asset test works. You can contact Centrelink on 13 23 00.
Further information is available from the Aged Care Information Line, 1800 500 853.
Common questions on this topic:
- I would prefer to rent out my home rather than sell it, but the home won't accept periodic payments. They want a lump sum. What can I do?
- I no longer have a partner but my son still lives at home. Will the home be counted as a asset for pension purposes?
See all common questions
