One of the biggest concerns families face when considering aged care is affordability. The good news is that no matter your financial situation, the Australian government provides funding to ensure aged care is accessible to those who need it. However, understanding the costs, funding options, and financial strategies available can be complex.
If you’re worried about how to pay for aged care, this easy guide will help you understand your options and the steps you need to take to make informed decisions.
How Do I Get Started with Aged Care in Australia?
The first step in accessing aged care services is to undergo an Aged Care Assessment Team (ACAT/ ACAS)assessment to determine your eligibility. Once you have been approved for care, it’s highly suggested to seek independent aged care financial advice to ensure you are maximising your funding and minimising unnecessary costs.
Many families panic about whether they can afford aged care, especially when faced with large fees like the Refundable Accommodation Deposit (RAD) or ongoing care costs. Seeking expert financial advice before making any major financial decisions—such as selling the family home—can save you thousands and provide clarity on your best options.
How Much Funding Will I Receive for Aged Care?
The amount of government funding you receive depends on your financial situation. You can use the My Aged Care fee estimator to get an approximate idea of your costs. However, every person’s financial circumstances are unique, and an expert aged care financial adviser can help you explore ways to maximise government support while protecting your assets.
I Can’t Afford the RAD – Can My Children Lend Me the Money?
If you’re unable to pay the Refundable Accommodation Deposit (RAD) upfront, there are several options:
- Pay the RAD in full as a lump sum.
- Pay the RAD as a Daily Accommodation Payment (DAP).
- Use a combination of both lump sum and daily payments.
Consider financial strategies such as using your superannuation, pension income, or family contributions. While borrowing from family may seem like an easy solution, it’s important to get professional financial advice to understand whether this is the best option for your circumstances. You have 28 days after entering aged care to decide how you want to pay the RAD, so getting expert guidance early can help you make a well informed decision.
How Can I Afford Other Aged Care Fees?
In addition to the RAD or DAP, aged care homes in Australia charge several other fees:
- Basic Daily Fee – Covers meals, cleaning, and other daily services. This is 85% of the Age Pension.
- Means-Tested Care Fee – An additional contribution based on your income and assets
- Additional Services Fees – Covering optional extras like Pay TV, premium dining, or hairdressing – this all depends on the facility.
Understanding how these fees apply to you and planning for them in advance can significantly ease financial stress.
Making the right financial decisions for aged care in Australia can mean the difference between unnecessary financial stress and a well-planned, affordable solution.
By getting expert, independent aged care financial advice, you can:
- Reduce aged care fees and maximise government support.
- Avoid costly financial mistakes, such as selling assets unnecessarily.
- Have peace of mind knowing your loved one’s care is financially sustainable.
Want to know more? Call 1300 001 225 and let Claudia and her experienced team help you navigate aged care with confidence.
