The income and assets checklist is one of the most important documents you will need when entering aged care in Australia. This checklist helps you gather the financial information required for your means test assessment, which determines how much you pay for aged care services and accommodation.

Completing the checklist accurately ensures you pay the correct fees, avoid overpaying, and access any subsidies or concessions you are entitled to. However, many people find the process confusing, miss important documents, or make valuation errors that result in higher costs.

This comprehensive guide explains exactly what documents you need, how to value your assets correctly, which exemptions apply, common mistakes to avoid, and step-by-step instructions for completing your aged care means test in 2026.

For context on aged care costs overall, see our nursing home costs calculator.

Key Points

  • The income and assets checklist is required for all aged care means testing with Centrelink or DVA
  • You need documentation for all income sources, financial assets, property, superannuation, and liabilities
  • Your family home is exempt if your spouse or dependent child lives there; otherwise it may be assessed with a capped value
  • Financial assets above $48,500 are assessed under the asset test and deemed under the income test
  • Gifting assets within five years before entering care can increase your fees due to deprivation rules
  • Accurate property valuations are essential; overvaluing or undervaluing can affect your fees significantly

Why the Income and Assets Checklist Matters

The income and assets checklist feeds into your means test assessment, which determines:

  1. Income-tested care fee: How much you pay towards your daily care costs
  2. Accommodation payment: Whether you pay the full room price or receive government support
  3. Basic daily fee: A standard fee everyone pays (currently $66.01 per day in 2026)

If you are assessed as having low income and assets, the government subsidises more of your care. If you have higher means, you contribute more towards your own costs.

Mistakes in the checklist can result in:

  • Paying too much (if you overvalue assets or miss exemptions)
  • Paying too little initially, then facing debt recovery when errors are found
  • Delays in accessing care while Centrelink requests missing documents

Documents You Need: Complete Checklist

Identification and Registration

Mandatory documents:

  • Medicare card
  • Driver license, passport, or other photo ID
  • Centrelink Customer Reference Number (CRN) if you have one
  • DVA file number if you are a veteran

These prove your identity and link your assessment to your existing Centrelink or DVA records.

Income Documentation

You need evidence of all income sources for the previous financial year and current income streams.

Age Pension or other Centrelink payments:

  • Recent Centrelink payment summary or income statement (available via myGov)

Superannuation pensions or annuities:

  • Statements showing current balance and payment amounts
  • Product disclosure statements (PDS) showing asset-tested and deemed amounts

Employment income:

  • Recent payslips (last 3 months)
  • Employment contract or letter from employer

Rental income:

  • Rental agreements or leases
  • Property management statements showing income received

Investment income:

  • Dividend statements
  • Interest statements from bank accounts

Other income:

  • Department of Veterans’ Affairs (DVA) pension or allowance statements
  • Income from trusts or businesses
  • Foreign pensions or income

If you have multiple income sources, gather statements for each. Centrelink assesses total income, not just taxable income, so include all sources even if they are not reported to the ATO.

Financial Assets

Bank accounts (savings, cheque, term deposits):

  • Statements for the last 3 months showing current balances
  • Include accounts in your name and joint accounts (50 percent of joint account balances are assessed)

Shares and managed funds:

  • Portfolio statements showing current market value
  • Include Australian and international shares

Superannuation (if not in pension phase):

  • Statements showing current balance
  • Once you reach Age Pension age, superannuation is counted as a financial asset unless it is in pension phase

Bonds and debentures:

  • Current value statements

Cash on hand:

  • Estimate of cash kept at home (be honest; large unexplained cash holdings may trigger audits)

Cryptocurrency:

  • Current value of any Bitcoin, Ethereum, or other digital assets (Centrelink treats these as assessable assets)

Property and Real Estate

Principal home (if assessed):

  • Recent property valuation or council rates notice
  • Sale prices of comparable properties in your area
  • If the home is exempt (spouse or dependent child living there), you still need the address and estimated value for records

Investment properties:

  • Current market valuation
  • Rental agreements
  • Outstanding mortgage balances

Vacant land:

  • Valuation or recent sale prices

Holiday homes or second properties:

  • Valuation and details of use

Property valuations are critical. See the section below on how to value property correctly.

Superannuation

Account-based pensions:

  • Current balance
  • Annual payment amount
  • Product disclosure statement

Accumulation superannuation (if over Age Pension age):

  • Total balance across all funds

Self-managed super funds (SMSF):

  • Latest financial statements
  • Asset breakdown (cash, shares, property within the fund)

If you are under Age Pension age, accumulation super is not assessed. Once you reach Age Pension age (currently 67), all superannuation is counted as a financial asset unless it is being drawn as an income stream.

Liabilities and Debts

Mortgages:

  • Current loan balance and lender details

Personal loans:

  • Loan balance and repayment schedule

Credit card debt:

  • Current outstanding balances

Other debts:

  • Car loans, lines of credit, HECS/HELP debt

Liabilities are deducted from your assets to calculate your net assessable assets. For example, if you own a property worth $600,000 with a $200,000 mortgage, the net assessed value is $400,000.

Gifting and Asset Transfers

Any gifts or asset transfers in the last 5 years:

  • Details of amounts gifted
  • Dates of gifts
  • Who received the gifts

Centrelink has a five-year lookback period for gifting. If you gave away money or assets (such as transferring property to your children) within five years of applying for aged care, those amounts may be counted as “deprived assets” and included in your means test.

The allowable gifting limit is:

  • $10,000 per financial year, or
  • $30,000 over five financial years

Anything above these limits is counted as a deprived asset.

How to Value Your Assets Correctly

Property Valuations

Accurate property valuations are essential. Overvaluing your home can result in higher fees; undervaluing can trigger audits and penalties.

Acceptable valuation methods:

  1. Formal valuation by a licensed valuer: Most accurate, costs $300-$800
  2. Comparable sales: Recent sale prices of similar properties in your area (use domain.com.au or realestate.com.au)
  3. Council rates notice: The land value on your rates notice (usually conservative)
  4. Online property estimate: Tools like CoreLogic or realestate.com.au estimate tool

Tips for property valuations:

  • Use a conservative estimate (mid-range of recent comparable sales)
  • Document your method (print comparable sales or save online estimates)
  • If Centrelink disputes your valuation, they may order their own valuation (which you can challenge)

For the family home: If your home is exempt (because your spouse or dependent child lives there), you do not need a formal valuation, but you should still estimate its value for Age Pension purposes.

If your home is assessed (vacant or no protected person living there), the value is capped at $210,710 (2026 threshold). Any value above this cap is disregarded for accommodation costs, but the full value is still assessed for Age Pension.

Superannuation and Investments

Superannuation balances: Use the balance shown on your most recent statement (within 3 months). If the balance fluctuates due to market changes, use the balance closest to your assessment date.

Shares and managed funds: Use the current market value, not the purchase price. Check your portfolio on the day you complete the checklist or use the most recent statement.

Term deposits: Use the face value plus any accrued interest.

Personal Items and Household Contents

Exempt items (not counted):

  • Furniture and household items
  • Clothing and personal effects
  • One motor vehicle (if used for transport)

Assessed items:

  • Collectibles (art, antiques, coins) if valuable
  • Second cars or recreational vehicles (boats, caravans)
  • Expensive jewelry beyond personal use

Most people do not need to value household contents. Only high-value collectibles or luxury items are assessed.

Exemptions and Special Rules

Home Ownership Exemptions

Your principal home is fully exempt from the asset test if:

  • Your spouse or partner continues to live there, or
  • A dependent child lives there, or
  • A carer who is eligible for Carer Payment lives there

If none of these apply, the home is assessed with a capped value of $210,710 (2026).

Asset-Free Threshold

The first $48,500 of financial assets (cash, shares, super) is exempt from the asset test. Assets above this threshold are assessed at progressive rates:

  • 17.5% of assets between $48,500 and $165,271
  • 1% of assets between $165,271 and $398,814
  • 2% of assets above $398,814

Income Test Exemptions

Exempt income sources:

  • Carer Allowance
  • Some DVA disability pensions
  • Compensation payments for personal injury (in some cases)

Deemed income (rather than actual income): For financial assets (savings, shares, super not in pension phase), Centrelink applies a deemed rate of return rather than your actual earnings. This can work in your favor if you earn less than the deemed rate, or against you if your accounts earn high interest.

Current deeming rates (2026):

  • 0.25% on the first $60,400 (singles) or $100,200 (couples)
  • 2.25% on amounts above these thresholds

How to Complete the Means Test

Step 1: Gather All Documents

Use the checklist above to collect all required documents. Missing documents delay your assessment by weeks.

Step 2: Choose Your Assessment Form

If you receive Age Pension or another Centrelink payment: You do not need to complete a separate form. Centrelink will use your existing records and may request additional information if needed.

If you do not receive a Centrelink payment: Complete form SA457: Residential Aged Care Calculation of Your Cost of Care. Download this from the Services Australia website or request it by calling 1800 227 475.

If you own property: Also complete form SA485: Residential Aged Care Property Details if you own your home or investment property.

Step 3: Submit Your Assessment

Methods:

  • Online: Via myGov linked to Centrelink
  • By mail: Send completed forms and supporting documents to the address on the form
  • In person: Take documents to a Centrelink service centre (book ahead)

What to include:

  • Completed SA457 and SA485 forms (if applicable)
  • Copies (not originals) of all supporting documents
  • A cover letter listing all documents included

Step 4: Wait for Your Assessment

Centrelink aims to process assessments within 28 days of receiving complete documentation. If you are already receiving Age Pension, it is usually faster (7-14 days).

You will receive:

  • A letter outlining your assessed income and assets
  • Confirmation of your daily care fees and accommodation costs
  • Information about how to request a review if you disagree with the assessment

Common Mistakes to Avoid

1. Undervaluing or Overvaluing Property

Mistake: Using an outdated valuation or guessing your home’s value.

Solution: Use recent comparable sales or a professional valuation. Document your method.

2. Forgetting Joint Accounts

Mistake: Only declaring accounts in your name and missing joint accounts with your spouse.

Solution: Declare 50% of all joint account balances. Centrelink cross-checks with bank records.

3. Not Declaring Gifting

Mistake: Transferring money to children before entering care and not reporting it.

Solution: Declare all gifts over $10,000 in the past five years. Centrelink will find out through data matching and you will face penalties.

4. Assuming the Home is Always Exempt

Mistake: Believing your home is automatically exempt even when vacant.

Solution: Check the exemption rules. If no protected person lives there, it may be assessed.

5. Missing Superannuation Balances

Mistake: Not declaring super because it is “locked away.”

Solution: Once you reach Age Pension age, all super is assessed, even if you have not accessed it.

6. Incomplete Documentation

Mistake: Submitting the form without attaching bank statements or property valuations.

Solution: Use a checklist to ensure every document is included before submission.

What Happens After Your Means Test

Fee Calculation

Once your means test is complete, Centrelink calculates:

  1. Basic daily fee: Everyone pays this (currently $66.01 per day in 2026)
  2. Means-tested care fee: Based on your income and assets (maximum $61.40 per day, or $22,411 per year)
  3. Accommodation payment: RAD, DAP, or combination (see our DAP vs RAD guide)

Annual Review

Your means test is reviewed annually. If your income or assets change significantly (such as selling an investment property), you must notify Centrelink within 28 days.

Appealing Your Assessment

If you disagree with your assessment, you can:

  • Request an explanation from Centrelink
  • Lodge a formal review within 13 weeks of the decision
  • Provide additional evidence (such as a new property valuation)

Frequently Asked Questions

What documents do I need for an aged care means test?

You need bank statements (last 3 months), superannuation statements, property valuations, share and investment portfolios, details of any income streams, recent Centrelink income statements, and documentation of any debts or liabilities. Medicare card and identification are also required.

How is my family home treated in the aged care asset test?

Your home is exempt from the asset test if your spouse or dependent child still lives there. If the home is vacant, it may be assessed with a capped value ($210,710 as of 2026). The home is always assessed for the income test using deemed income on its value.

What assets are exempt from aged care means testing?

Exempt assets include your principal home (if occupied by a protected person), household contents and personal effects, prepaid funeral plans, and the first $48,500 of financial assets. Certain compensation payments and war pensions may also be exempt.

How do I get my property valued for aged care assessment?

You can use a formal property valuation from a licensed valuer, recent sale prices of comparable properties in your area, your local council rates valuation, or an online property estimate tool. Centrelink may accept self-assessed valuations if reasonable and supported by evidence.

Can I gift assets before entering aged care to reduce my fees?

Yes, but Centrelink has a five-year lookback period for gifting. Any gifts above $10,000 per year (or $30,000 over five years) are counted as deprived assets and included in your means test, potentially increasing your fees.

What is the income test for aged care?

The income test assesses your total annual income from all sources including Age Pension, superannuation pensions, deemed income from financial assets, rental income, and employment income. This determines your income-tested care fee, which is capped at $33,309 annually (2026).

How long does a means test assessment take?

Centrelink aims to process aged care means test assessments within 28 days of receiving all required documentation. If you are already receiving an income support payment (like Age Pension), the assessment is usually faster, often within 7 to 14 days.

What happens if I do not complete a means test?

If you do not complete a means test, you will be assessed as a full-fee payer, meaning you pay the maximum income-tested care fee and accommodation costs. This can result in significantly higher fees than if you were properly assessed.

Key Resources

Get Your Means Test Right the First Time

Completing your income and assets checklist accurately is one of the most important steps in the aged care process. Taking the time to gather all required documents, value your assets correctly, and understand exemptions can save you thousands of dollars in fees over the course of your care.

If you are unsure about any part of the process, do not guess. Seek help from a financial adviser, aged care specialist, or the Centrelink Financial Information Service (free service). Getting your means test wrong can be costly and stressful to fix later.

For more guidance on aged care fees and costs, see our aged care fees calculator and our guide to self-managed home care packages.

Need help with your aged care financial assessment? Connect with MD Home Care to find advisers and providers who can guide you through the means test process and ensure you are paying the right amount.