How Aged Care Is Funded in Australia
How is aged care funded in Australia? The government subsidy, your means-tested contribution, and what protects you from paying too much.
A shared-cost system
Where the government money comes from
How funding flows in home care
How funding flows in residential care
How your contribution is worked out
What protects you from paying too much
Putting it together
Frequently asked questions
Who pays for aged care in Australia?
The cost is shared. The government, funded through general taxation, pays the larger share through subsidies to providers, and you contribute towards some costs based on your income and assets. For most people, the government's share is the bigger one.
Is aged care means-tested?
Access to care is not means-tested — anyone with assessed needs can receive funded care. The means test, done by Services Australia, only decides how much you contribute towards the non-clinical parts of your care, not whether you qualify for it.
Do I pay for nursing and allied health?
No. Clinical care — nursing, physiotherapy, occupational therapy and similar — is fully government-funded for everyone under Support at Home, regardless of income. From 1 October 2026, personal care also becomes fully funded, removing another cost for many people.
Is there a limit on what I pay?
Yes. A lifetime contribution cap (around $137,900, indexed) limits your total non-clinical contributions. Financial hardship assistance is available if you cannot afford fees, and a 'no worse off' rule protects people who were on or approved for a Home Care Package before the reforms.