Income Tested Fee Explained: What Central Coast Families Need to Know
Whether you’ve just been approved for a Home Care Package or are getting ready for the new Support at Home system starting 1 July 2025, it’s important to understand the Income Tested Fee (ITF). This guide breaks it down in plain language, so you know how it works and how it affects your funding.
What’s the ITF All About?
The ITF is a fee that some people may need to pay towards their government-funded aged care. It’s based only on your income—not your assets—and is calculated by Services Australia. If you’re required to pay, this amount is deducted from your total package amount. It doesn’t add to your budget; it simply means the government pays a little less, and you chip in a bit more.
What Will Services Australia Tell Me?
You’ll receive a letter explaining:
- Your daily Income Tested Fee amount (if applicable)
- The Basic Daily Fee providers can charge (which is optional)
We advise clients to keep this letter and provide a copy to us. It helps ensure your care budget reflects the correct contribution.
What Makes Home Care Assistance Central Coast Different?
- We don’t charge the Basic Daily Fee – this keeps your costs lower.
- Our Care Management and Package Management fees are a percentage of your package and clearly explained.
- If you have an ITF, we’ll collect it on behalf of Services Australia, so everything is managed in one place.
Important Notes:
- You’ll only pay the Income Tested Fee if Services Australia has assessed you to do so.
- It’s part of your package funding—not a separate charge.
- If not collected, ITF amounts can build up as a debt—so please notify us if you receive a letter.
Changes from July 2025: What to Expect
From July, your co-contribution amount will be based on your income and pension status. Those who don’t submit income information to Services Australia will be required to pay the highest rate.
Income Assessment Process
If you’re not already on a means-tested pension, you’ll need to complete an income assessment. This helps determine your contribution level.
Who needs to apply?
- Self-funded retirees
- Part-pensioners without recent assessments
- Anyone not on a current Centrelink income-tested payment
How to submit your assessment
To complete your income assessment, you’ll need to fill out either the SA456 paper form or the SA486 smart PDF form, then post it to Services Australia. You can find both forms on the Services Australia website
We’re Here to Support You
Sorting through aged care contributions and assessments doesn’t have to be stressful. At Home Care Assistance Central Coast, we’re here to explain everything clearly and walk you through the process—from understanding your Income Tested Fee to helping you complete income assessment forms. Give our friendly team a call and let us take the guesswork out of your aged care support.
