Annual, lifetime and time limited caps for aged care

These caps follow a care recipient as they move between aged care providers, services and care types. From 1 November 2025, the Support at Home Program replaces the Home Care Packages Program.

Entering care after 1 November 2025

A non-clinical care contribution may apply to people who enter residential care on or after 1 November 2025. Care recipients will no longer make a non-clinical care contribution when they reach the lifetime or time limited cap thresholds in total contributions.

The lifetime cap applies when the non-clinical care total contributions paid has reached the applicable threshold.

The time-limited cap applies when making a non-clinical care contribution for 4 years (1460 days), regardless of the amount paid. The non-clinical care contributions do not need to be continuous, are accumulative and included in the calculations of the 4 year time-limited cap.

Any contributions made by a care recipient towards their Support at Home services before they enter residential aged care will count towards the lifetime cap.

Read more about the thresholds on the Department of Health, Disability and Ageing website.

Entering care after 1 July 2014

Residential care means-tested fees accrue against a person’s annual and lifetime cap. This is from their first date of 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

How the caps are calculated depends on the type of care received.

Home Care

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:

  • moved to home care after 1 July 2014
  • moved to home care from a different care type
  • changed home care providers and opted in.

Residential Care

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:

  • moves to residential care after 1 July 2014
  • moved to residential care from a different care type
  • changed residential care providers and opted in.
Page last updated: 1 November 2025.
QC 74128