Aged care providers – need to know more about annual and lifetime caps?

There are annual and lifetime caps for care recipients who entered care on or after 1 July 2014.

Annual caps are reset each year on the anniversary of a care recipient’s entry into aged care. When the reset occurs, the care recipient needs to pay their income or means tested care fee until they reach the annual cap again.

A lifetime cap is applied when the total income or means tested care fees paid by a care recipient over their lifetime reaches the threshold.

You can find the annual and lifetime cap amounts for residential and home care on the Department of Health website.

We’ll write to you and your care recipient, or their nominee, when we’ve processed the claim for the month in which the care recipient reaches the annual or lifetime cap.

Once a care recipient reaches a cap, we’ll pay the income or means tested fees to you through subsidy payments.

The care recipient continues to pay the basic daily fee and any accommodation costs.

Next steps

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Page last updated: 3 May 2018

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