Aged care is one of the most emotional and complex decisions a family can face. The right aged care financial advice helps you understand the costs, make the most of government support, and handle the paperwork, so you can focus on your loved one rather than the fine print.
Arranging aged care for a parent or partner is one of the hardest things many families go through. It often arrives suddenly, after a fall, a hospital stay or a gradual decline, and it brings a wave of decisions at a time when emotions are already running high. Understanding the financial side early can take real weight off your shoulders.
That is where aged care financial advice makes a genuine difference. In simple terms, aged care financial advice helps you understand what care will cost, how the means test applies to your situation, and how to arrange your finances so you can access the support you are entitled to. This guide explains how aged care costs work, how means testing assesses income and assets, and how the right advice can ease both the financial and emotional load. It is general information only and not personal financial advice. At Ironbark Wealth Advisers, we walk alongside families from our Dubbo office, across Orange, and Australia-wide via Zoom and Google Meet.
Quick summary
- Aged care in Australia is heavily subsidised, but most families still contribute towards the cost based on their income and assets.
- What you pay depends on the type of care, the provider, and a means assessment usually completed by Services Australia.
- Fee rules changed on 1 November 2025 under the new Aged Care Act, and Home Care Packages became the Support at Home program.
- The right advice can help you access government subsidies, protect Age Pension entitlements, and avoid decisions that are hard to undo.
Understanding Aged Care Costs
Aged care in Australia is heavily subsidised by the government, but most families are still asked to contribute something towards the cost of care. What you pay depends on the type of care, the provider you choose, and your income and assets. It is worth noting that fee arrangements changed on 1 November 2025 under the new Aged Care Act, so the rules can differ depending on when someone entered care.
The Main Fees Involved in Residential and Home Care
Residential aged care costs usually fall into a few main categories:
| Fee | What it covers | How it is worked out |
|---|---|---|
| Basic daily fee | Everyday living costs such as meals, laundry and cleaning | A set rate that everyone pays |
| Means tested care fee or care contribution | Your share of the cost of care | Based on an income and assets assessment |
| Accommodation costs | Your room and accommodation | Paid in full or part, or government funded if you are assessed as a low means resident |
| Higher everyday living fees | Additional services or a premium room | Optional, set by the provider |
If your loved one is staying in their own home, in-home support is now delivered through the Support at Home program, which replaced Home Care Packages from 1 November 2025. It has its own contribution rules based on income.
How Means Testing Assesses Assets and Income
How much you contribute is worked out through an aged care means assessment. For most people this is handled by Services Australia, using the aged care calculation of your cost of care form. If your loved one already receives a means tested payment such as the Age Pension, Services Australia may already hold their details.
The assessment looks at both income and assets. The family home can be counted as an asset, though generally only up to a capped value, and it may be exempt if a protected person such as a spouse still lives there. Because these thresholds and caps are indexed and can change, it is worth checking the current figures or using the My Aged Care fee estimator before making any decisions.
How the Right Advice Can Ease the Load
Good aged care advice is not just about crunching numbers. It is about giving your family clarity and confidence at a stressful time, and making sure you do not pay more than you need to or miss support you are entitled to.
Maximising Government Subsidies and Age Pension Entitlements
The way your loved one’s income and assets are arranged can affect both their aged care fees and their Age Pension entitlements. Small changes can sometimes make a meaningful difference to the subsidies and concessions available. An experienced financial adviser can review the full picture and help you make the most of the support on offer, which is valuable for pensioners and self-funded retirees alike.
Structuring Assets to Keep Care Affordable
Decisions about the family home, superannuation, investments and how accommodation costs are paid can all shape how affordable care feels over time. The accommodation deposit is a good example: paying it as a refundable lump sum, a daily payment, or a mix of the two changes how much of your savings stays available to you and how your cash flow works month to month. We help families weigh these trade-offs carefully, alongside your accountant where needed, and connect them with your broader retirement planning and estate planning.
How Ironbark Supports Your Family Through Aged Care
Beyond the numbers, families often tell us the hardest part is simply knowing where to start. As a proudly regional, family led firm with over 35 years of experience, we take the time to understand your family’s situation and what matters most, and we take that burden off you so the decisions feel clearer and more manageable.
Help With the Forms, Applications and Paperwork
Aged care comes with a lot of paperwork, from means assessment forms to provider agreements. We help you understand and complete the financial forms and applications, so nothing is missed and deadlines are met, and the stress of the paperwork is off your plate.
Compassionate, Flexible Meetings at Home, in Hospital or at an Aged Care Facility
We know this rarely happens at a convenient moment. That is why we meet you where it suits, whether that is in your home, at the hospital, at the aged care facility, or online. We bring patience and genuine care to every conversation, no matter how difficult the circumstances.
Working Alongside Your Family and Other Professionals
Aged care touches many parts of life, so we coordinate with the people already supporting you, including your accountant, solicitor and the care providers involved. We can also connect your aged care plan with your superannuation and estate planning, so your whole financial position stays joined up.
Frequently Asked Questions
When should we seek aged care financial advice?
As soon as aged care becomes part of the conversation, and ideally before any deposit is paid or the family home is sold. Some financial decisions are hard to undo once care has started, so getting advice early helps you keep your options open, understand the likely costs, and avoid missing subsidies or concessions you are entitled to.
How are aged care costs calculated?
Your costs are usually a mix of a basic daily fee that everyone pays, a means tested contribution based on your income and assets, and accommodation costs. Because the means test drives so much of the total, two people receiving identical care can pay very different amounts. Services Australia works out your means tested amount, and it can change over time as your circumstances or the indexed thresholds change.
What is the Support at Home program?
Support at Home is the Australian Government program that replaced Home Care Packages from 1 November 2025. It funds services that help older people stay in their own home, such as personal care, nursing, allied health and help around the house, with the amount you contribute based on your income. If your family is weighing up home care against residential care, advice can help you compare the real cost of each option.
Is the family home counted in the aged care means test?
It can be, but rarely at its full value. Only a capped amount is ever counted, and the home is usually exempt while a protected person still lives there, such as a spouse, a dependent child, or a long term carer who receives an income support payment. Because the cap is indexed, it is worth confirming the current figure for your situation.
Do you help with the forms and applications?
Yes. The financial forms, including the means assessment, are long and easy to get wrong, and mistakes can delay your assessment or change what you are asked to pay. We help you gather the right information and complete them correctly, so the process moves smoothly and nothing important is missed.
Can financial advice help pensioners and self-funded retirees?
Yes, though in different ways. For pensioners, the right structure can help protect Age Pension entitlements while keeping care affordable. For self-funded retirees, the focus is on funding larger accommodation and care costs tax-effectively, without drawing down savings faster than needed. In both cases, care fees and pension outcomes are linked, so a decision in one area can quietly affect the other.
Plan Ahead for Aged Care With Confidence
Aged care is rarely easy, but you do not have to work it out alone. With clear advice and a plan in place, your family can make confident decisions and focus on what matters most, the wellbeing of your loved one.
If you would like support with aged care financial advice, our team is here to help. You are welcome to call us on (02) 6884 4680, send an enquiry through our contact page, or book a consultation at a time that suits you.
Whatever stage you are at, we are here to help you work out the right next step for your family. You can also explore more guidance in the Ironbark Knowledge Hub.
This article was written by the team at Ironbark Wealth Advisers, a family-led financial planning firm with over 35 years of experience, supporting families across Dubbo, Orange and regional New South Wales. Ironbark Wealth Advisers Pty Ltd is a Corporate Authorised Representative (CAR No. 315227) of Madison Financial Group Pty Ltd, AFSL No. 246679. This article is general information only and does not take into account your objectives, financial situation or needs. Please consider the relevant Financial Services Guide (FSG) and seek personal advice before making any decisions.
References
- My Aged Care, Aged care home costs and fees, https://www.myagedcare.gov.au/aged-care-home-costs-and-fees
- My Aged Care, Means assessments for residential aged care, https://www.myagedcare.gov.au/means-assessments-residential-aged-care
- Services Australia, Aged care calculation of your cost of care, https://www.servicesaustralia.gov.au/aged-care-calculation-your-cost-care
