Understanding the Income Tested Fee (ITF): What It Means for You
If you or a loved one is starting a Home Care Package (HCP), or preparing for the upcoming Support at Home program (starting 1 July 2025), you may have heard of the Income Tested Fee (ITF). This fee can be a little confusing, so we’re here to explain it simply and clearly—so you know what to expect and how it affects your care and funding.
What Is the Income Tested Fee?
Under the current Home Care Package program, the ITF is a government-assessed contribution that some participants are required to pay towards their aged care services. It’s based on your income (not your assets) and is determined by Services Australia.
If you’re required to pay an ITF, it’s deducted from your total government-funded care package. It doesn’t give you extra funding—it just means you’re contributing a portion, and the government pays the rest.
How Will You Know If You Need to Pay?
Services Australia will send you a letter confirming:
- Your daily ITF contribution (if you’re not required to pay one, this will show as $0)
- The Basic Daily Fee that providers are allowed to charge (this is separate from the ITF)
We recommend keeping a copy of this letter and sharing it with your provider so your care budget and services reflect your correct funding level.
What Does This Mean for Your Care with Home Care Assistance?
At Home Care Assistance, we’re proud to offer transparent, affordable pricing. Here’s how we’re different:
- We don’t charge the Basic Daily Fee. Many providers do, but we choose not to—keeping your care more cost-effective.
- We charge a percentage of your total package for Care Management and Package Management, and we always explain this clearly upfront.
- If you have an ITF, we’ll collect it on behalf of Services Australia, as required. This is managed as part of your funding, not added on top.
A Few Important Things to Know:
- You’ll only pay an ITF if Services Australia tells you to.
- The ITF is part of your total package, not in addition to it.
- If you’ve been told you owe an ITF but your provider isn’t collecting it, let them know immediately—unpaid fees may become a debt over time.
If you’re unsure whether the ITF applies to you, we’re always here to help. You can also speak with Services Australia or ask about financial hardship assistance if you’re worried about affordability.
What’s Changing from 1 July 2025 with Support at Home?
From 1 July, the way client contributions are calculated will change. Under the Support at Home program, contributions (also known as co-contributions) will be based on:
- Your pension status, and
- Your income (not assets)
If you don’t provide income and asset information to Services Australia, you’ll be considered a ‘means not disclosed’ participant—and will be asked to pay the maximum co-contribution.
What Is the Support at Home Contribution Income Assessment?
This assessment, managed by Services Australia, determines how much (if anything) you’ll need to contribute toward your aged care services—either under the current Home Care Package program or under Support at Home from July 2025.
You don’t need to complete an assessment if:
- You’re already receiving a means-tested payment (e.g. Age Pension, Disability Support Pension, Service Pension). Services Australia will already have your income details.
You do need to complete one if:
- You’re a self-funded retiree
- You don’t receive a means-tested Centrelink payment
- You’re a part-pensioner without a recent income assessment
To complete your income assessment, you can either fill out the paper form SA456 or use the interactive PDF form SA486, which adjusts questions based on your answers. Once completed, post the form to Department of Human Services.Both forms are available on the Services Australia website, or speak with us—we’re happy to help you download, print, or complete them.
Need More Help?
If you’re unsure where to start or need help with the forms, Home Care Assistance is here for you every step of the way. We’ll guide you through the process and make sure you understand exactly what your funding looks like—so you can feel confident, informed, and in control of your care. Use the form at the top of this page to request a call back.
