We can help you make the best financial choice for your family
Understanding (and applying) Australian Aged Care rules, pricing and payment structure can be overwhelming..
When it comes time to start looking at aged care options, it’s important to have a good comprehension of how your personal situation interacts with existing Aged Care rules, and the potential short and long term financial consequences.
Every situation is unique. The way your family’s finances are structured can have a significant impact on the out-of-pocket cost of care.
To get the best outcome, good financial advice is essential.
Our aged care specialist will assist in providing peace of mind and help you to make smart financial decisions.
Each situation is unique:
- How will your home be assessed?
- How much will aged care cost?
- What can you do to get the best outcome?
CASE STUDY
Harry & Pat - Looking at moving into Residential Aged Care
For couples the timing of entering care can affect the calculation of your assessable assets and income for means testing purposes
The formula used to determine the amount you contribute towards the cost of your accommodation and care is based on your assets and income.
As a couple, assets and income are assessed jointly, irrespective of who owns them. There are special considerations in place for the family home dependent on family situation.
The timing of entering aged care can produce different outcomes by changing the way assets are assessed.
How it's assessed
Harry and Pat are considering moving into an aged care facility.
If Harry and Pat enter care on the same day, they will each have 50% of the value of their former home included in their assets for means testing.
If Harry and Pat enter care on separate days, the value of their home will be exempted for the first person to enter a facility. Half the value of the home will be assessed against the second to enter.
By entering care on separate days the first person to enter may qualify as a Low Means Resident – with some (or all) of their accommodation cost met by the government.
Get in touch with an Aged Care advice specialist.
Our Aged Care Financial Advice team is located on the Central Coast of New South Wales (NSW) at:
Suite 1, 36-40 Victoria Street
EAST GOSFORD NSW 2250.
You can call to speak with a financial planner on:
02 4397 4455.
GLOSSARY
A payment made by residents to cover the cost of their room in an aged care home. It can be paid as a lump sum (RAD), daily payment (DAP), or a combination.
A Department of Human Services payment which ensures you have an income for your retirement.
You may need an assets assessment to work out if you qualify for assistance with your aged care accommodation costs. It will also determine the amount that you pay towards care in an aged care home.
A standard fee paid by all residents to cover essential living expenses such as meals, laundry, cleaning, and electricity.
A care plan outlines your care needs and instructions about how these needs will be met.
The daily contribution for accommodation costs in an aged care home. You make this payment on a regular basis, up to a month in advance, similar to paying rent. This payment is not refundable.
A daily payment for accommodation costs, similar to rent. DAPs will be indexed to inflation (CPI) every March & September for new residents from 1 Nov 2025.
A lump-sum contribution for accommodation costs paid by residents who receive partial government support. It is refundable when the resident leaves the aged care home.
A lump-sum payment for accommodation costs. It is refundable when the resident leaves the aged care home. Aged Care providers will retain up to 2% per year for 5 years (max 10%) from RADs for residents entering care after 1 Nov 2025.
An additional fee based on your assessable income and assets. These are your contributions towards essential living expenses such as meals, cleaning, laundry and electricity.
A fee covering personal care services such as bathing, mobility assistance, and lifestyle activities. bathing, mobility assistance and provision of lifestyle activities. This fee is capped at $130,000 or after 4 years, whichever occurs first.
Your provider may offer premium services or lifestyle extras—such as upgraded meals, entertainment options, or greater flexibility in daily routines. These are offered at an additional cost and are not funded by the government.
- You can choose which items or packages you want.
- Acceptance of these services and agreement to pay the additional fees is optional for residents entering care from 1 November 2025.
A Low Means Resident is a person entering permanent residential aged care who, based on their assessable income and assets, qualifies for government assistance with:
- Accommodation costs
- Hotelling Supplement Contribution
- Non-Clinical Care Contribution
GLOSSARY
Principle Financial Group Pty Ltd ABN 43 629 780 249 AFSL 516203. This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.
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Suite 1 Victoria Court,
36-40 Victoria Street,
EAST GOSFORD NSW 2250