Understanding aged care costs is complicated — but important
One of the most common concerns families raise when considering aged care support is cost. The system can seem opaque, and many families aren't sure what government support is available, what they'll need to contribute, and what they might need to fund privately. This guide breaks it down clearly.
Government subsidies: the foundation
The Australian Government subsidises a significant portion of aged care costs for eligible Australians. Under the Support at Home program (from July 2025), funding is allocated across eight classifications based on assessed need. The higher the classification, the more government funding available — ranging from around $11,000 per year for classification 1, to over $78,000 per year for classification 8.
Income-tested contributions
Most people will be asked to contribute toward some of their care costs. The amount is determined by Services Australia based on your income and assets. Key points:
- Contributions are income-tested, not asset-tested (for home care)
- There are annual and lifetime caps on how much you can be asked to contribute
- Hardship provisions exist for those who genuinely cannot afford contributions
- Full pensioners typically pay very little or nothing for personal care and nursing
What's not covered by government funding
Government-funded aged care covers support with daily living tasks related to your care needs. It does not cover:
- Everyday living costs (groceries, utilities, rent)
- Purely social or recreational activities unrelated to your care plan
- Modifications or equipment above specified funding amounts (without approval)
- Support that falls outside your assessed care needs
Provider fees and what to watch for
Providers can charge different rates for the same services, within the Government's regulated maximum. Always ask for a clear Schedule of Fees before signing a service agreement. Be wary of high administration or case management fees that eat into your funding without delivering direct care.
Transparent pricing at Lyft Community
Lyft Community is committed to transparent, fair pricing. We provide every client with a clear schedule of fees before any agreement is signed, and we maximise the proportion of your funding that goes toward actual care. Contact us for a fee schedule and personalised estimate.