Comprehensive guide to rates and thresholds for aged care and pensions in Australia.

A Guide to Rates and Thresholds for Aged Care and Pensions

ByRob Laurie

Navigating the financial landscape of aged care and pensions in Australia can be a complex task. This comprehensive guide aims to provide you with all the crucial rates and thresholds effective 20 September 2025. Use this as your go-to quick reference guide for making informed decisions.

Residential Aged Care

Basic Daily Care Fee

Means-Tested Care Fee

Note: The highest cost of care is $417.41 per day, including primary supplements.

(updated 20 September 2025)

How is the Means-Tested Amount Calculated?

  1. Income Test Contribution: \[((Total assessable income – income-free area) × 50%) ÷ 364]
  2. Asset Test Contribution: Calculated based on assessable assets.

    – 17.5% of assets between $61,500 and $206,039.21

    – 1% of assets between $206,039.21 and $495,117.60

    – 2% of assets above $495,117.60

  1. The total amount is then divided by 364.  (updated 20 September 2024)

Income-Free Area

  • Single: $34,762.00 (updated 20 September 2025)
  • Couple (illness separated, each): $34,034.00 (updated 20 September 2025)

Accommodation Costs

If the means-tested amount is less than $69.49, an accommodation contribution is required. If it’s more, an accommodation payment applies.

Maximum Accommodation Supplement

  • Newly Built/Refurbished and Meets 40% Low Means Quota: $69.49
  • Not Newly Built but Meets 40% Low Means Quota: $45.31
  • Newly Built but Doesn’t Meet 40% Low Means Quota: $52.12
  • Neither: $33.98

Minimum Permissible Asset Level

Amount: $61,500

Maximum Permissible Interest Rate (as of 20 September 2025)

  • From 1 October 2025 – 31 December 2025: 7.61%
  • From 1 July 2025 – 30 September 2025: 7.78%

Home Care

Basic Daily Care Fee (as of 20 September 2025)

  • Level 1 (Basic): $12.09
  • Level 2 (Low): $12.78
  • Level 3 (Intermediate): $13.14
  • Level 4 (High): $13.49

Income-Tested Care Fee

Income-Free Area and Income Test Threshold (as of 20 September 2025)

  • Single: $34,762.00 (Free Area), $66,960.40 (Threshold)
  • Couple (Living Together): $34,034.00 (Free Area), $66,232.40 (Threshold)
  • Couple (Illness Separated): $26,871.00 (Free Area), $51,142.00 (Threshold)

Annual and Lifetime Cap (as of 20 September 2025)

  • Annual Cap: $7,047.55 or $14,095.20 (based on income)
  • Lifetime Cap: $84,571.66

Pensions

Age Pension Age

  • Prior to 1 July 1952: 65
  • 1 January 1957 and later: 67

Maximum Rate of Pension (as of 20 September 2025)

  • Single: $1,178.70 (fortnightly), $30,646.00 (annually)
  • Couple (Each): $888.50 (fortnightly), $23,101 (annually)

Pension Asset Test (as of 20 September 2025)

  • Single Homeowner: Full pension at $321,500, cut-off at $714,500
  • Couple Homeowner: Full pension at $481,500, cut-off at $1,074,000

Carer Allowance (as of 20 September 2025)

  • Fortnightly Payment: $159.30
  • Income Limit: Combined annual income of carer and partner must be under $250,000

For more personalised advice, you can reach out to Aged Care Financial Advisers at 1300 550 940.

Navigating the financial landscape of aged care and pensions in Australia can be a complex task. This comprehensive guide aims to provide you with all the crucial rates and thresholds. Use this as your go-to quick reference guide for making informed decisions.

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