As part of your Home Care Package, Services Australia may determine that you are required to pay an Income Tested Fee (ITF). 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.
What is an Income Tested Fee?
An income tested fee is a government mandated fee that some people on home care packages must pay. Services Australia will conduct an income assessment to determine if you need to pay an Income Tested Fee. This assessment will determine how much you are required to pay based on your income.
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. If you are a full pensioner, or have an income below $28,472.60, you will not have to pay an income tested 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 completed your income assessment.
You may start a home care package before Services Australia is able to conduct an income assessment. If this is the case, your home care package provider will ask you to pay the maximum income tested fee until your income assessment has been completed. At Trilogy Care, we will refund an excess that has been charged once your income assessment has been completed.
How much will I have to pay?
The fee is based off a person’s income, 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 have to pay up to $15.81 per day if you are single and are earning over $28,472.60, are a member of a couple living together earning over $22,094.80, or are a member of a couple living apart due to illness earning over $27,952.60. The maximum amount you will have to pay in income tested fees over your lifetime is $69,101.75 (as of 20 September 2021).
You can use My Aged Care’s fee estimator to get an estimate on whether you will have to pay an income tested fee, and how much.
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 by using a direct debit facility called GoCardless. This system effectively removes Trilogy Care from the process, as the fee is automatically debited from your account monthly when requested by Services Australia.
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 this fee monthly to pass on to Services Australia. Home Care Package providers must collect this fee if you are eligible.
However, there are many fees that providers can choose to charge. Some providers 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 12% 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.