Centrelink and Aged Care: What You Need to Know Before Applying

Navigating the aged care system in Australia can feel daunting—especially when Centrelink paperwork, income and asset assessments, and urgent care decisions are involved. Whether you're planning ahead or helping a loved one transition into residential aged care, understanding the process early can save you stress, money, and time.

This guide explains what you need to know before applying, and how Aged Care Simplified can support you at each step.

1. Why Centrelink Matters in Aged Care

Centrelink plays a central role in determining what you pay when entering government-subsidised residential aged care or respite care. They assess:

• Your income

• Your assets

• Your eligibility for subsidised aged care

• The fees you will be required to contribute

Because these fees depend heavily on Centrelink’s calculations, getting the assessment right is essential.

2. Start with an ACAT/ACAS Assessment

Before you can access government-funded residential care or respite, you must complete an aged care assessment through:

• ACAT – all states except Victoria

• ACAS – Victoria

This free assessment determines your eligibility for:

• Residential aged care

• Residential respite

• Transition care

Aged Care Simplified can help you understand your results and what steps come next.

3. Prepare Your Financial Information Early

Centrelink requires detailed financial information to assess your contribution toward aged care fees.

You may need to provide:

• Bank and savings account statements

• Superannuation details

• Share and investment records

• Property valuations (including the family home, if applicable)

• Trust or company documents

• Pension or income records

This process can be time-consuming and confusing, especially during stressful periods.

How Aged Care Simplified supports you

We help clients gather documents, complete Centrelink forms correctly, and submit information to avoid delays or incorrect fee assessments.

4. Understand Residential Aged Care Fees

Centrelink’s assessment determines what you will pay when entering residential care. Fees may include:

1. Basic Daily Fee

A standard fee for everyday living costs.

2. Means-Tested Care Fee

Calculated by Centrelink based on your income and assets.

3. Accommodation Payment

Depending on your assessment, you may:

• Pay a RAD (Refundable Accommodation Deposit)

• Pay a DAP (Daily Accommodation Payment)

• Or choose a combination of both

These costs can differ significantly depending on your financial situation.

Aged Care Simplified can explain these fees clearly and help you understand what they mean for your situation.

5. You Don’t Need to Be on a Centrelink Pension to Apply

You may be:

• A full pension recipient

• A part pension recipient

• A self-funded retiree

Regardless, you still need to complete Centrelink’s aged care financial assessment for residential care.

Aged Care Simplified ensures assessments are lodged correctly, even for clients who have never dealt with Centrelink before.

6. Timing Matters — Start Early

Centrelink’s processing times can take weeks.

Delays can lead to:

• Paying maximum default fees

• Slower approval for subsidised care

• Additional stress during an already difficult time

Aged Care Simplified acts quickly, lodging applications promptly to avoid delays.

7. Professional Guidance Can Save You Thousands

Aged care fees, Centrelink rules, and asset assessments can be complex. Getting expert help can make a significant difference.

Aged Care Simplified provides personalised guidance to help you:

• Navigate the Centrelink process

• Understand aged care costs

• Make informed financial decisions

• Communicate with aged care providers

• Avoid costly mistakes

8. Keep Centrelink Updated

Even after entering care, you must report changes in:

• Assets

• Income

• Relationship status

• Living arrangements

Not updating Centrelink can lead to incorrect fees or overpayments.

Aged Care Simplified can manage required updates for you, keeping assessments accurate and compliance simple.

9. Consider Setting Up a Power of Attorney

Residential aged care often requires quick decisions, and Centrelink needs authority to speak with someone acting on your behalf.

A Power of Attorney ensures:

• Faster communication

• Easier document handling

• Smoother approvals

We help families register authorised representatives so Centrelink can speak with the right person immediately.

How Aged Care Simplified Helps Clients

Aged Care Simplified is dedicated to making aged care entry clear, manageable, and stress-free. We can help with:

✔ Centrelink income and asset assessments

✔ Completing and lodging all required documents

✔ Explaining aged care fees in simple terms

✔ Managing updates and communication with Centrelink

✔ Guiding families through residential and respite care entry

✔ Avoiding delays, errors, and unnecessary costs

We simplify the process so you can focus on what matters most—supporting your loved one.

Residential aged care involves emotional, financial, and administrative challenges. Centrelink assessments can feel overwhelming, but with the right information—and the right support—you can navigate this transition with confidence.

Aged Care Simplified is here to guide you through every step, ensuring accuracy, clarity, and peace of mind.