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If you’re heading to aged care, beware this common misconception

Rachel Lane Money contributor October 22, 2025 — 5.01am

There’s a common misconception that once you reach the aged care lifetime cap, the bills stop. Sadly, that’s not quite true.

The lifetime cap limits how much you’ll pay toward your means-tested fees – in home care, that’s your income-tested care fee, and in residential aged care, it’s your means-tested care fee. The lifetime cap applies across both home care and residential aged care, acting as a safeguard so people don’t keep paying indefinitely for their care.

If you’ve received home care before moving into residential care, those contributions count toward your lifetime cap – so your “paid share” carries over. B

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