Income Tested Fees

What is an Income Tested Fee?

An income tested fee, or ITF, is a government-mandated fee that some people on a Home Care Package must pay. The income tested care fee is an additional contribution that some people will pay toward their Home Care Package. It's based on your individual income, including your pension. Services Australia conducts regular income assessments to determine whether an individual needs to pay an ITF. The assessment is based on your individual income, including your pension. If your income is above a certain threshold, your package provider must collect this fee on behalf of Services Australia. This guide covers what an income tested fee is, when you will have to pay it, and covers the easiest way to pay it. This fee goes to the Australian Government but will be collected by your Home Care Package provider. Your provider must collect this fee if Services Australia has determined that you must contribute to the cost of your Home Care Package.

Will I have to pay an Income Tested Fee?

Services Australia will conduct an income assessment to determine if you are required to pay an income-tested fee. This fee is different for everyone. It’s based on your income, including your pension. However, full pensioners and people with an income up to $33,027.80 do not pay an income-tested care fee. This amount is updated with indexation on 20 March and 20 September each year. If your financial circumstances change, you should notify Services Australia. Notify the Department of Veterans Affairs (DVA) if they have completed your income assessment. You may start a home care package before Services Australia can conduct an income assessment. If this is the case, Services Australia will ask you to pay the maximum income-tested fee until your income assessment has been completed. At Trilogy Care, we refund any excess that has been charged once your income assessment has been completed and Services Australia has issued the refund.

How much will I have to pay?

The fee is based on a person’s income, and everyone will have to pay a different amount. The fee also accounts for whether you are a member of a couple, their income, and your living arrangements. You may be required to pay an amount of up to $18.30 per day if you fall into one of the following categories:

• If you are single and earn over $33,027.80
• If you are a member of a couple living together and earn over $25,576.20
• If you are a member of a couple living apart due to illness and earn over $32,351.80

Alternatively, you could pay between $18.30 and $36.60 per day if you fall into one of these categories:

• If you are single and earn over $63,559.60
• If you are a member of a couple living together and earn over $48,588.80
• If you are a member of a couple living apart due to illness and earn over $62,883.60

You can use My Aged Care’s fee estimator to estimate whether you will have to pay an income-tested fee and how much. These capped amounts are subject to adjustment on March 20th and September 20th each year, and the information provided is current as of 1 July, 2024.

How do I pay my Income Tested Fee?

Your home care package provider will collect your income-tested fee on behalf of Services Australia. Services Australia will collect this fee from your provider. At Trilogy Care, the easiest way to pay this fee is through a direct debit facility called ezyCollect. This system automatically debits your account monthly when Services Australia requests it.

What other fees do I need to know about?

If Services Australia has determined that you must pay this fee, your home care package provider will collect it monthly and pass it on to Services Australia. Home Care Package providers must collect this fee if you are eligible. However, providers can choose to charge many fees. Some charge a basic daily fee to manage your package. They can also charge separate package management and care management fees. Providers may charge you separately if you want to use additional services outside of that provider. Providers can also charge entry fees to start your package and exit fees if you want to change to a different package provider. At Trilogy Care, we charge a 15% flat rate with no additional costs, fees, or surcharges. We must collect this fee from those who are eligible on behalf of Services Australia. Check out our package pricing for more information. Remember, Home Care Package funds can only be used on specific items and services, so make sure you know the inclusions and exclusions. Check out our frequently asked questions or call Trilogy Care at 1300 459 190.