Why an Income and Asset Assessment is Essential When Entering Residential Aged Care

When you move into residential aged care, a separate income and asset assessment must be submitted to Centrelink, even if you already get the Age Pension. If it’s not submitted, you’ll be charged the maximum fees, which can be over $50,000 per year. Mistakes or delays can lead to overpayment, and some fees may not be refundable. The aged care facility must charge what Centrelink tells them—so it’s critical this is done right. We assist with this entire process to make sure it’s handled properly.

Think of it like booking a hotel—your nightly rate depends on your budget.

When someone enters permanent residential aged care, the government needs to understand how much you can afford to pay—this is called a means assessment, and it looks at both your income and assets. It’s submitted to Centrelink (or DVA) and helps decide:

How much you’ll pay for care
Whether you’re eligible for government support
If you’re a “low means” resident or a full-fee payer

This assessment is not automatic, even if you’re already on the Age Pension.

⏱ Why it must be done on or before the first day of care

If this isn’t submitted correctly and on time:

1. You’ll be charged the maximum fees by default

Centrelink labels you as “means not disclosed”, and the aged care home must charge:

The full accommodation cost (e.g., up to $416 per day as of March 2025)
Plus a Means-Tested Care Fee (up to $34,000+ per year)
Plus the basic daily fee

If this isn’t corrected in time, and especially if the person passes away before it’s sorted, those extra fees may not be refundable.

2. Old or incorrect data could be used

Sometimes Centrelink does a data match and pulls up old records that don’t reflect your current financial situation. They might:

Overestimate the value of household contents or cars
Miss changes like selling a property or downsizing

And that could mean you pay more than you should.

🧾 What happens after the form is submitted?

Once the form is submitted:

It goes to Centrelink’s specialist Aged Care Team
They do the assessment and issue a fee advice letter
This letter is sent to both you and your aged care facility
The facility must charge you the fees in that letter. They can’t override it

If the letter is wrong, it’s your job (or ours, if we’re assisting you) to get it corrected with Centrelink.

💡 But I’m already on the Age Pension—don’t they know my details?

Yes and no.

Centrelink’s Age Pension Team may know your financial details—but the Aged Care Team does not. They don’t automatically share information between departments. That’s why we need to submit this separate assessment.

✅ How we help

We make sure your income and asset assessment is submitted correctly, completely, and on time. That way:

You’re charged the correct fees
You don’t overpay or miss out on subsidies
You avoid costly mistakes or delays