How are Income & Assets calculated?
The summary below of the formula is based on information provided by the Commonwealth
No liability is accepted for its accuracy
Residents / Family Members are encouraged to seek qualified, professional financial advice, use the myagedcare website, or discuss their financial affairs and obtain estimate of fees & charges payable from the myagedcare helpline
Calculation of Assessable Income (Income Test)

refer to the 'Residential Fee Estimator' guide on the myagedcare website, for details regarding 'income'

rates are current as at 20th September 2018 respectively

the 'income free' threshold is $26,985.40 [single]; and $26,465.40 [couple]

therefore 

total annual income from defined sources

less $26,985.40 assessment free threshold

= net assessable income

if the net assessable income is less than $26,985.40, no income tested amount is payable

if the net assessable income is greater than $26,985.40, an income tested amount will be determined/payable by 

using 50% of the result, and

dividing by 365 days = daily assessed amount


Calculation of Assessable Assets (Asset Test)

refer to the 'Residential Fee Estimator' guide on the myagedcare website, for details regarding 'assets', which comprises two [2] categories, property and investments [however styled]

rates are current as at 20th September 2018

calculation of the Asset Tested Amount applies three [3] thresholds and three [3] different interest rates

the 'asset free' threshold is $49,000

the value of the 'family home' [as distinct from any investment property] is deemed to be $166,707.20 irrespective of the 'market' value, and will only be included in the asset test if not occupied by a 'protected' person [spouse/carer  refer definition on the myagedcare website]

that amount plus any investments, constitutes the total amount of assets for calculation of the asset test

the following 'formula' is applied 

$166,707.20 less $49,000 [asset tested free threshold] multiplied by 17.5%

if the total value of assets exceeds the value of the two [2] which would apply with respect to the market value of most properties in the inner suburbs, a further threshold is then calculated by deducting the 1^{st} threshold amount of $166,707.20 from the 2^{nd} threshold of $402,121.60, multiplied by 1%

finally the 2nd threshold of $402,121.60 is deducted from the total value of all assets, multiplied by 2%


the result of the above calculations is added up to arrive at the Asset Tested Amount

the Income Tested Amount and the Asset Tested Amount are then added together to arrive at the 'gross' Means Tested Amount payable

however, as the Commonwealth would contribute a maximum Accommodation Supplement [currently $56.59], that is deducted from the total Means Tested Amount [Income & Asset], to finally arrive at the Daily Means Tested Care Fee as a contribution to care