What is the Residential Aged Care Means Tested Fee?

The Means Tested Fee (MTF) is a daily fee you are charged once you have entered Residential Aged Care as a permanent resident.

It is important to know that it is not the only daily fee you will be charged whilst in Residential Aged Care.

How is the Means Tested Fee calculated?

The MTF is calculated based on your income and assets at your date of permanent entry to Residential Aged Care.

This is important as strategies can be put in place in preparation for your future entry to care to benefit you and your hip pocket.

You will be required to complete forms outlining your income and assets and submit them to the Department of Human Services for assessment. If you choose not to complete this form, you will be required to pay the maximum daily MTF (see below) and be deemed a ‘means not disclosed’ resident.

What amount of Means Tested Fee will I be charged?

The maximum MTF you can be asked to pay is $259.15 per day (capped at $28,087.41 per year or $67,409.85 over your lifetime).

This can be a substantial amount to many people, so it is important your MTF has been calculated correctly to ensure you are not paying more than you need to. 

Who charges the Means Tested Fee?

Although the MTF is calculated by the Department of Human Services, you pay this fee to the Residential Aged Care facility.

What happens if the Department of Human Services hasn’t completed my assessment when I enter my chosen Aged Care facility?

This depends on the Aged Care facility you are in and their internal policies. Some will charge the maximum daily MTF until the assessment has been completed (which can cause financial stress), other facilities will complete an estimate of your MTF based on the financial information you have provided them and charge accordingly (which could be much less than the maximum daily amount).

Does the Means Tested Fee stay the same?

No, your MTF is updated quarterly (1 January, 1 April, 1 July, 1 October each year). This is because the amount you pay is based on your income and assets. As time goes on, your situation may change and therefore mean your MTF may increase or decrease.

Our team of Aged Care specialists are here to help

Navigating entering Residential Aged Care yourself or assisting a loved one can be an emotionally charged, overwhelming and complex time so it is important to find the right person to guide you through the process.

To ensure you are equipped with an understanding of the fees and costs relating to Residential Aged Care, get in touch with our Newcastle Aged Care team for our personalised service to assist you in determining your care needs. Contact us on 4962 4440.

Figures are current at the time of writing and are subject to legislative change.