What are Income Tested Fees?
When you are awarded an Government Home Care Package, you will need to undergo an Income Assessment, to determine if you should contribute to the cost of supports provided. These are called Income Tested Fees or ITF’s.
How do income tested fees (ITF) work?
The ITF you may be eligible to pay is calculated daily, and is deducted from the funding you’ll receive in your Home Care Package. For example, if your daily subsidy is $49.49, but you have to pay an ITF of $8.09 per day, the government will only pay $41.40 per day towards your care needs. The government assumes that PlanCare has recouped the total ITF’s from the client for that month in advance, and deducts this from the claim. When PlanCare claim for your services at the end of the month, the government will reduce the claim amount by the amount you have to pay for your ITF. This means that your ITF’s are owed to PlanCare.
How do I know if I have to pay an ITF?
Once you have done an income assessment (via the My Aged Care website), Services Australia will notify you and PlanCare of the amount you will need to pay towards your care needs. If you are a full pensioner, you will not need to pay an ITF.
How much will I pay?
To get an idea of what you might need to pay towards your Home Care Package, visit the My Aged Care website and use their Fee Estimator. By entering some details about your income, assets, and household, you’ll get an estimate that can help you plan ahead. Keep in mind, these figures are estimates and might vary based on your specific situation.
What happens if I don't complete the assessment?
If you’re a self-funded retiree and/or choose not to lodge an income assessment form with Services Australia, we’ll ask you to pay the maximum ITF, and your applicable subsidy will be reduced by the same amount. If you start to receive a Home Care Package before Services Australia has determined your ITF, we’ll ask you to pay the maximum amount until the Australian Government makes that determination. If your income assessment determines that you did not need to pay an ITF, PlanCare will refund any ITF amounts paid to you. Your ITF may also be adjusted if your circumstances (including your financial situation) change. Any adjustments will be notified by Services Australia to you and to us.
How do I pay my income tested fees?
PlanCare will send you an invoice monthly, for the previous month’s ITF. You can either pay using your credit card, or transfer money via the direct debit details on the invoice. You can set up a recurring direct debit to us as well. PlanCare does not accept cash or cheques.
Can I get reassessed to pay a lower rate?
If you feel you have been wrongly assessed by the Government, you can ask to be reassessed. Once the new assessment has been completed, if the outcome has changed, the Government will write to both you and PlanCare notifying us of the changes. If the new outcome is a lower outcome to the previous, a refund will be provided to your homecare account.
What if I can’t or don’t want to pay my ITF?
Unfortunately if you are eligible to pay an ITF, you must pay this. If you refuse to pay, PlanCare may terminate your service agreement, and commence debt collection. If you’re experiencing financial hardship and are having trouble paying care fees, then you may be eligible for further government assistance - please contact your Co-Care Partner.
What's an Income Tested Fee?
How does it work?
PlanCare is notified
The government will make you and PlanCare aware if you are required to contribute towards the supports you recieve.
PlanCare invoices you
Once PlanCare has received the government letter confirming the amount you are required to contribute, PlanCare will email you a copy of the letter along with an invoice.
You pay your ITF
Once you receive your income tested fee invoice PlanCare, you have a couple of options of how you can pay.