The Aged Care Lifetime Contribution Cap, Explained for Families
The aged care lifetime contribution cap explained: the total limit on care contributions across home and residential care, the two amounts, and what counts.
What the lifetime cap is
Why it exists
What counts toward the cap
The two cap amounts
The time limit in residential care
What the cap does not cover
How to keep track
Frequently asked questions
What is the aged care lifetime contribution cap?
It is a total limit on the care contributions a person pays across their whole time in aged care. Once they reach it, the government covers those care contributions from then on, protecting people from open-ended costs during a long stay.
Do home care and residential care count together?
Yes. Contributions paid while receiving support at home and the non-clinical care contribution paid in a residential home both count toward the same lifetime cap, so a person carries their running total with them if they move settings.
Is there one cap amount for everyone?
No. People on the arrangements from 1 November 2025 have a higher cap, indicatively around $137,000, while those protected by the 'no worse off' principle keep a lower cap of around $86,000. Both are indexed twice a year.
Does the cap cover accommodation costs?
No. The cap applies to care contributions only. Accommodation payments, the basic daily fee, the everyday living or hotelling contribution, and any extra services you choose are separate and are not covered by the lifetime cap.