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 1st threshold amount of $166,707.20 from the 2nd 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