AGED CARE MEANS TESTING 2026: WHAT ASSETS & INCOME ARE ASSESSED?

Aged care means testing changed completely on 1 November 2025. The old system used one "Means Tested Care Fee." The new system uses two separate fees: NCCC and HSC. Perth families need to understand both to plan their aged care costs accurately.

Here's the big shift. The government now pays 100% of clinical nursing care. All of it. Rich or poor doesn't matter. You pay for "hotel-style" living costs (meals, cleaning) based on your assets. But nursing care? That's free for everyone now.

This guide breaks down aged care means testing in plain English. You'll learn what NCCC and HSC cover, when you start paying them, and how much they cost. Let's start with what changed and why it matters.

WHAT MEANS TESTING DETERMINES IN 2026

NCCC: Non-Clinical Care Contribution

NCCC stands for Non-Clinical Care Contribution. Think of it as the "daily living help" fee. It covers staff time helping you with:

• Bathing and showering
• Getting dressed
• Moving around the facility
• Eating meals
• Joining activities

Notice what's NOT in that list? Nursing care. Wound dressing, medication management, catheter care, blood pressure checks - all that clinical stuff is now 100% government-funded. NCCC only covers the non-medical help with daily living.

This matters because previous aged care fees mixed nursing care with daily living help. Wealthier residents subsidised their own healthcare. Not anymore. Now everyone gets the same government-funded clinical care regardless of their bank balance.

HSC: Hotelling Supplement Contribution

HSC stands for Hotelling Supplement Contribution. Think of it as the "hotel extras" fee. Everyone pays a Basic Daily Fee of $65.55. That covers basic meals, utilities, and cleaning. HSC covers the upgrade from "hostel basic" to "hotel quality."

What does HSC fund? Better quality ingredients for meals. More frequent room cleaning. Higher-grade laundry standards.

Better-maintained facilities and gardens. Basically, the difference between budget accommodation and comfortable living.

HSC has a lower threshold than NCCC. Many middle-income Perth families pay HSC even when their NCCC is zero. Assets of $252,000 trigger HSC. You need $532,000 before NCCC kicks in.

What's Not Means-Tested Anymore

The Basic Daily Fee of $65.55 applies to everyone. This is set at 85% of the Age Pension. It goes up twice a year when pensions increase. Billionaire or battler, everyone pays this same amount.

Clinical nursing is also not means-tested. A resident needing intensive wound care gets the same government funding as someone needing basic medication management. Health needs determine nursing support, not wealth.

THE SERVICES AUSTRALIA ASSESSMENT PROCESS

How to Request Your Assessment

You request means testing through Services Australia (used to be called Centrelink). You can do this online via myGov. Or call the Aged Care line on 1800 200 422. Or visit a Centrelink office in person.

The assessment takes 2-4 weeks. Start before entering care if possible. This gives you time to understand your costs. Otherwise, facilities estimate your fees high then adjust later when your assessment comes through.

You'll need comprehensive financial details. Bank statements for all accounts. Investment statements. Property valuations. Superannuation balances. Income from all sources. The more complete your documents, the faster the process.

The Income Test

Services Australia counts all taxable income. Age Pension, superannuation pensions, rental income, part-time wages if you're still working. They also apply "deemed income" to financial assets.

Deemed income treats your savings and investments as if they earn set rates. Currently (January 2026), deeming applies 0.25% to assets up to $62,600 (singles) or $103,800 (couples). Above those amounts, they deem 2.25%.

Example: You have $200,000 in the bank. Services Australia deems this earns $3,253 annually. That's ($62,600 × 0.25%) + ($137,400 × 2.25%). Your actual interest doesn't matter. They use the deemed amount.

The Assets Test

The assets test values everything you own minus certain exemptions. Your family home is exempt for two years if your spouse still lives there. Sometimes it's exempt indefinitely if protected persons remain. Personal belongings, household goods, and one vehicle for personal use are also exempt.

Everything else counts. Investment properties, shares, managed funds, bank accounts, valuable collections. Even the contents of safety deposit boxes if they're valuable items like gold or jewellery.

Property gets valued using recent comparable sales or professional valuations. Shares and managed funds use current market prices. Cash is easy - it's face value. The assessment adds it all up.

Your Fee Advice Letter

Services Australia issues a fee advice letter. This states your exact NCCC and HSC amounts based on the combined income and assets test. The letter explains which thresholds apply and how they calculated your amounts.

Aged care facilities use this letter to know what to charge you. Without it, they estimate conservatively (meaning high). Getting your assessment done early saves you from overpaying while you wait.

The assessment stays valid until your circumstances change significantly. Sell a property? Receive an inheritance? Stop receiving a pension? These trigger reassessment. Major financial changes need reporting within 28 days.

NCCC THRESHOLDS AND CAPS EXPLAINED

When NCCC Starts

NCCC kicks in when your assets exceed $532,055 (as of January 2026). Below that? You pay zero NCCC. The government fully funds your non-clinical care help. This protects middle-income Perth families from aged care contribution obligations.

Let's put that in perspective. $532,000 is roughly the value of an average Perth house plus some savings. Most people with just their family home and modest savings pay nothing for NCCC.

Above $532,000, your NCCC increases gradually. Someone with $600,000 pays less than someone with $750,000. It keeps rising until you hit the maximum daily rate at $1,023,454 in assets.

Maximum Daily NCCC

The maximum NCCC is $105.30 per day. That's the cap. Assets of $1.1 million? $105.30 daily. Assets of $5 million? Still $105.30 daily. Your wealth doesn't push the fee higher once you hit the maximum.

At maximum rate, NCCC costs about $38,435 per year. That's significant. But remember, this is only for people with over $1 million in assessable assets. And there's a lifetime cap that limits total exposure.

The Lifetime Cap Protection

NCCC has a lifetime cap of $135,318.69 OR four years of payments. Whichever comes first. This is huge protection. Let me explain why.

Say you're paying maximum NCCC ($105.30 daily). That's $38,435 annually. After 3.5 years, you've paid $135,318. Done. No more NCCC for the rest of your life in aged care. Even if you stay another 5 years, your NCCC obligation is finished

.

What if you're paying moderate NCCC (say $50 daily)? That's $18,250 yearly. You'd need 7+ years to hit the dollar cap. But the four-year rule protects you. After exactly four years, your NCCC stops regardless of how much you've actually paid.

This four-year cap is automatic. You don't apply for it. After four years of NCCC payments, the facility simply stops charging it. This ensures even wealthy residents eventually receive government-subsidised non-clinical care.

HSC THRESHOLDS AND CAPS EXPLAINED

When HSC Starts

HSC kicks in at just $252,000 in assets. This is much lower than NCCC's $532,000 threshold. The government's view: if you have $252,000, you can contribute something toward better-quality meals and housekeeping.

Many Perth families pay HSC even when their NCCC is zero. Assets between $252,000 and $532,000? You're in this zone. You contribute to hotel-style services but get free non-clinical care help.

HSC reaches maximum at $355,366 in assets. The range is narrow - only $103,000 spread between zero HSC and maximum HSC. Your asset level affects HSC amounts more sharply than it affects NCCC.

Maximum Daily HSC

Maximum HSC is $22.15 per day. At this rate, you're paying $8,085 per year. This funds the enhanced meals, extra cleaning, better laundry standards, and nicer amenity maintenance beyond what the Basic Daily Fee covers.

Here's the critical difference from NCCC: HSC has NO lifetime cap. It continues indefinitely. You pay HSC every day you're in aged care. Two years, five years, ten years - HSC keeps going.

Why HSC Has No Cap

The government views HSC differently from NCCC. NCCC is a care contribution (hence the lifetime cap). HSC is accommodation running costs (like ongoing rent or hotel charges). Just as you'd pay rent indefinitely living independently, HSC continues throughout care.

This makes HSC a permanent ongoing cost. Budget accordingly. If you're paying maximum HSC, that's $8,085 every year for however long you're in care. Unlike NCCC, which eventually stops, HSC never does.

Combined NCCC and HSC Scenarios

Let's look at real examples. Say you have $400,000 in assets. That's above the $252,000 HSC threshold but below the $532,000 NCCC threshold. You pay maximum HSC ($22.15 daily) but zero NCCC. Your means-tested contribution: $22.15 per day total.

Now say you have $800,000 in assets. You're above both thresholds. You pay both fees. Roughly $80 daily NCCC (partial, not maximum) plus $22.15 HSC. Total means-tested contribution: about $102 per day, or $37,230 annually.

Plus everyone pays the Basic Daily Fee ($65.55). So your total daily fees before accommodation: around $168 per day. That's $61,320 yearly. Plus your RAD or DAP accommodation payment. Plus any optional premium services. Costs add up quickly for higher-asset residents.

WHO KEEPS THE OLD SYSTEM

Grandfathering Protection

Already in residential aged care on 31 October 2025? You're "grandfathered." You keep the old fee system. No NCCC. No HSC. You pay the old single Means Tested Care Fee with the old rules and caps.

This also protects people approved for Home Care Packages on or before 12 September 2024. Even if you don't enter residential care until 2026 or later, you keep the old favourable system. The government wanted to protect existing aged care participants.

For most grandfathered people, the old system is better. Lower daily maximum ($67.74 vs $105.30). Lower lifetime cap ($84,571 vs $135,318). The trade-off: no automatic four-year cut-off like NCCC has.

Moving Facilities While Grandfathered

Grandfathered residents who change facilities within 28 days keep their protected status. You don't convert to NCCC/HSC just because you moved. This lets grandfathered residents relocate without losing their advantageous position.

Delay longer than 28 days between facilities? You might lose grandfathering and convert to the new system. Time your moves carefully. The 28-day window is strict.

Should You Elect the New System

Generally, no. Most grandfathered residents benefit from staying grandfathered. But there might be edge cases where the new four-year NCCC cap makes the new system attractive. This requires professional modelling.

Don't switch systems without expert advice. Once you elect the new system, you can't go back. Get an aged care financial specialist to model both scenarios for your specific circumstances before making any decision.

UNDERSTANDING YOUR TOTAL COSTS

All the Fees Combined

Means testing determines NCCC and HSC. But these layer on top of other aged care fees. Here's what a Perth resident with $750,000 in assets might pay daily:

• Basic Daily Fee: $65.55 (everyone pays this)
• NCCC: About $75 (estimated for $750K assets)
• HSC: $22.15 (maximum rate)
• Accommodation (DAP): $52.40 (if paying 50% RAD, 50% DAP on $500K room)
• Total daily: Approximately $215
• Monthly: About $6,450
• Annual: Roughly $78,475

Plus they paid $250,000 as RAD upfront (subject to 2% retention). This shows why understanding means testing matters. It's not your only cost, but it's a significant piece.

Optional Premium Services

Quality facilities offering restaurant-quality meals and wellness programs may charge Higher Everyday Living Fees (HELF) for services beyond standard requirements. This replaced the old "Extra Service Fee."

HELF is strictly optional. Facilities can't require it as an entry condition. They must itemise exactly what premium services justify the HELF charge. You can decline HELF or cancel it at annual review points.

Examples of genuine HELF services: Premium entertainment, enhanced spa treatments, dedicated companion care, private cinema sessions, chauffeur service in luxury vehicles. Not basic care - only genuine extras above standard provision.

When Fees Cap Out

NCCC is the only fee with a lifetime cap. After you hit $135,318 or four years (whichever first), your NCCC stops forever. At maximum rate, this happens after roughly 3.5 years. Afterwards, you're saving $38,435 yearly.

Everything else continues indefinitely. Basic Daily Fee, HSC, accommodation payments, any HELF you've agreed to. These keep going for however long you're in care. Only NCCC eventually terminates.

PREPARATION STRATEGIES

Timing Your Assessment

Request your means assessment before entering care if possible. The 2-4 week processing time lets you plan around known costs. Entering without an assessment means facilities estimate high then adjust later.

For urgent entries (hospital discharge, crisis situations), request assessment immediately. Provide all documentation promptly. The faster you complete the process, the sooner you pay accurate amounts instead of inflated estimates.

Asset Positioning Considerations

The assessment values assets as of assessment date. Strategic positioning before assessment might reduce exposure. Legitimate spending on exempt items (home modifications, prepaid funeral arrangements within limits) can reduce assessable assets.

But Services Australia scrutinises artificial asset reduction. Gifting triggers "deprivation" rules. Gifted assets count as still owned for means testing purposes, typically for five years. Don't gift assets to avoid means testing without professional advice. The penalties outweigh the benefits.

Documentation Checklist

Gather these documents before requesting assessment:

• Bank statements (all accounts, last 3 months)
• Investment statements (shares, managed funds, current values)
• Property ownership documents and recent valuations
• Superannuation statements (current balances)
• Income tax returns (last 2 years)
• Age Pension or other pension documents
• Details of any trusts, companies, or complex structures

Complete documentation accelerates processing. Missing information triggers requests for more documents, extending the timeline. Quality facilities like Regents Garden provide checklists to help families prepare thoroughly.

CONCLUSION

Aged care means testing fundamentally changed from 1 November 2025. The old single fee split into NCCC and HSC. Each has different thresholds, different caps, and different purposes. NCCC covers non-clinical care help. HSC covers hotel-style living costs. Clinical nursing is now 100% government-funded for everyone.

The thresholds matter significantly. Assets under $252,000? You pay zero means-tested fees. Between $252,000 and $532,000? You pay HSC only. Above $532,000? You pay both NCCC and HSC until hitting the NCCC lifetime cap.

The NCCC four-year cap provides major protection. After four years or $135,318 (whichever first), your NCCC obligations stop permanently. HSC continues indefinitely, but at maximum $8,085 yearly. Understanding these structures helps Perth families budget accurately for aged care costs.

Professional financial advice proves essential. The interaction between means testing, accommodation payments, Centrelink, and tax creates complexity requiring expert modelling. Aged care financial specialists understand the 2026 changes and can show you total cost scenarios for your specific circumstances.

Quality Perth facilities demonstrate commitment to transparency by providing clear aged care costs and accommodation information alongside connections to independent financial specialists. For families seeking aged care that prioritises both quality care and fee transparency, contact the care team at (08) 6117 8178 to arrange personalised tours. Regents Garden operates aged care residences across five Perth locations: Bateman, Lake Joondalup, Booragoon, Aubin Grove, and Scarborough, with retirement villages at Lake Joondalup and Aubin Grove.