What is an Income Tested Care Fee (ITF)?

An Income Tested Care Fee (ITF) is a means-tested personal contribution that some recipients of Home Care Packages may be required to pay if they have not registered with Centrelink or are assessed as having sufficient funds to personally contribute to the package.

The amount of daily funding your approved provider receives is reduced by the amount you have been determined as being able to contribute. The total value of the package does not change, only the source of the funds. For example, if a Home Care Package is valued at $9000 and the recipient has been assessed as eligible to pay $3000 as their ITF contribution, then the government subsidy to the provider will be $6000. However, the contributed $3000 will be used first before the government contribution.

Recipients who have not yet had their income assessed will need to pay the maximum daily ITF amount from the first day of their Home Care Package. However, if the income assessment results in a lower or no ITF amount, the excess paid will be refunded, when the approved provider has received a refund from Services Australia.

Before making the decision to accept a Home Care Package, it is advisable to determine if an ITF applies to you. Those on L1 or L2 packages may not find the package financially beneficial if they are assessed as needing to pay a high or maximum ITF.

Personal contributions are collected fortnightly by direct debit, which is an authority that customers sign with the organisation, allowing them to take money directly from a nominated account under specified conditions, as approved under banking rules.

You can find out more here.