Annual and lifetime caps

Annual and lifetime caps follow a care recipient as they move between aged care providers, services and care types.

Entering care after 1 July 2014

Residential care means-tested fees accrue against a person’s annual and lifetime cap. This is from the date of their first entry into home or residential care. This applies for anyone who entered care on or after 1 July 2014.

If a care recipient moves to a Home Care Package, any means-tested care fees paid in residential care that year counts towards the annual cap.

If a care recipient moves to residential care, any income-tested care fees paid in home care that year count towards the annual cap.

These fees also count towards the lifetime cap in both home care and residential care.

Entering care before 1 July 2014

Income-tested care fees paid from the time the care recipient starts home care only count towards the annual and lifetime caps if the care recipient:

  • moves to home care after 1 July 2014
  • was in residential care before 1 July 2014.

Means-tested care fees paid from the time the care recipient starts residential care only count towards the annual and lifetime caps if the care recipient:

  • was in home care before 1 July 2014
  • moves to residential care after 1 July 2014.
Page last updated: 15 June 2024.
QC 74128