The moment when families realise they’re facing aged care decisions often catches them off guard. It may follow a fall, a sharp decline in health or the sudden realisation that Mum or Dad is no longer managing the way they once did.
At the same time, families are often confronted by the financial complexity that comes with it. Alongside the emotional weight is a series of financial decisions many people are unprepared for.
Without the right guidance, it is easy to make rushed financial decisions when under pressure. But with early planning and the right aged care financial advice, families can better understand their options and make more informed decisions about the future.
Why aged care costs are more complex than most families expect
Australia’s aged care system is more complex than many families realise, with multiple fee structures that vary depending on a person’s income, assets, care needs and whether they receive care at home or in a residential facility.
While the Australian Government subsidises aged care, individuals are still expected to contribute towards costs. The amount payable is determined through an income and assets assessment conducted by Services Australia.
It’s also worth noting that significant reforms came into effect on 1 November 2025 under the new Aged Care Act, which changed how fees are structured – particularly for anyone entering residential care after that date. If your family is navigating these decisions now, getting advice that reflects the current rules is more important than ever.
Broadly speaking, aged care financial planning should consider the following:
- Daily living and care costs. These cover meals, cleaning, laundry and personal care. Most people in residential aged care pay a basic daily fee. Some may also pay additional means-tested contributions – including a Hotelling Supplement Contribution (towards everyday living) and a Non-Clinical Care Contribution (towards personal care) – depending on their financial position.
- Accommodation costs. If a person moves into residential aged care, accommodation costs apply. This can be paid as a lump sum Refundable Accommodation Deposit (RAD), ongoing Daily Accommodation Payments (DAP), or a combination of both. In some cases, the government may assist those with limited financial means.
- In-home care costs. For people receiving support at home, costs are generally lower because accommodation fees do not apply. Individuals contribute towards home services such as cleaning, meal preparation and nursing support based on their income and level of care required.
With so much to consider, choosing the right option can feel overwhelming. Working with a specialist aged care financial adviser can help translate that complexity into plain language and give your family a clearer picture of what applies to your specific situation.
Practical ways families can reduce aged care financial stress
The biggest reason aged care decisions become stressful is because they often happen suddenly, even when there were earlier signs that support may soon be needed. Taking a proactive rather than reactive approach can make transition easier.
Understand the different aged care pathways
Aged care isn’t always a single destination. The type of care needed can change as needs evolve. Support at home, retirement community living and residential aged care all involve different levels of care, cost structures and government support.
Once you understand the different options and costs involved, you’ll be in a better position to make the right decision when the time comes.
Know what government support is available
Many families are surprised by how much government support may be available through Australia’s aged care system. Each individual’s circumstances are different and is assessed based on their income, assets and care needs.
A good starting point is the myagedcare.gov.au website, which provides an overview of available services, eligibility and how to begin the assessment process.
Have a family discussion early
Aged care conversations are often delayed because a parent is resistant to the idea, sometimes because it just keeps getting pushed to tomorrow.
Having an open discussion early about preferences, expectations and financial concerns can make decision-making easier later on. It also gives the person who may need care a voice in those decisions while they’re still well placed to have one.
For families hoping to keep a parent at home for as long as possible, home care financial advice can help you plan for ongoing support services that government assistance may not fully cover.
Assess assets and income
Funding aged care may draw on savings, investments, pensions, superannuation or the family home. Understanding what’s available helps families plan more confidently and avoid being pushed into rushed decisions at the worst possible moment.
An aged care financial adviser can review your family’s financial position, explain how different options may affect retirement income, estate planning and long-term financial security, and help map out a funding strategy that makes sense for your circumstances.
Balance care costs with protecting family wealth
Aged care decisions often raise concerns about protecting wealth – for a surviving spouse, for future generations, or both. Decisions involving the family home, investments and other assets can all have long-term consequences that aren’t always obvious in the moment.
Professional financial planning for parents can help families weigh immediate care needs against longer-term financial goals, so that important decisions are made with the full picture in mind.
How a specialist aged care financial adviser can help
Most people don’t realise how complex aged care decisions can become until they are forced to navigate the system themselves.
Getting aged care financial advice can help translate that complexity into plain language, giving families a clearer understanding of what applies to their situation, what options are available and which decisions should be prioritised first.
A specialist aged care financial adviser can also help compare different funding approaches, structure assets more effectively and build a clear financial roadmap for the transition into care.
If your family is facing aged care decisions, you don’t have to navigate them alone. Speak to a Gold Coast financial adviser at RFS Advice who can help you understand the process and put a financial plan in place early.
Frequently asked questions
Aged care involves complex fee structures, Centrelink means testing, pension entitlements, estate planning and government regulations, all of which intersect with one another. Specialist aged care financial advice can help you understand your options and put a clear strategy in place that supports both immediate care needs and long-term financial security.
Not necessarily. The family home may be exempt from the assets test for a period, particularly if a spouse remains living there. What happens to it longer term can affect aged care fees, pension entitlements and the estate, which is exactly why getting professional financial advice early matters.
Government assistance is available for those with limited financial means. A means assessment conducted by Services Australia will determine eligibility. In some qualifying cases, the government may cover accommodation costs entirely.
As early as possible – ideally before care becomes urgent. Early planning gives families more time to explore funding options, structure finances effectively and avoid rushed decisions under pressure.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
