Why Aged Care Advice is More Important Than Ever
When it comes to aged care, many families think they can’t afford advice. In reality, you probably can’t afford not to get advice. The decisions you make when entering aged care can affect your cashflow, your assets, your pension entitlements, and even your estate — and mistakes can be very costly.
The window is closing
From 1 November 2025, major changes to aged care fees will begin. These changes could mean:
Higher ongoing daily fees for some residents
More costs for home care services
New rules around refundable accommodation deposits (RADs)
A lifetime cap that resets how much families may contribute
👉 If you or a loved one may need care in the next year, the next nine months are critical. Acting now could save thousands of dollars and protect your long-term financial security.
Why you shouldn’t go it alone
Navigating aged care can feel like learning a new language — RADs, DAPs, MPIRs, MTAs and ACATs. With so many acronyms and rules, it’s no wonder families often feel confused, frustrated and anxious.
Some tasks are simply too complex and too important to do on your own. That’s where we can help. We translate the jargon, help you understand the options, and make sure you’re not paying more than you should.
Costly mistakes we see without advice
Without professional guidance, people often:
Sell the family home without understanding the consequences
Avoid paying a lump sum (RAD) due to misconceptions
Fail to generate enough cashflow to cover care costs
Provide the wrong information to Services Australia and end up paying higher fees
These mistakes can quickly add up to tens of thousands of dollars and create unnecessary stress at an already difficult time.
Why licensed advice matters
Not all advice is good advice. To protect yourself, only seek advice from licensed financial advisers who:
Have education and experience in aged care
Are licensed under an AFSL
Are listed on the ASIC Financial Adviser Register
This ensures you are protected if something goes wrong and that your adviser is accountable.
What’s changing from 1 November 2025
The government has announced sweeping changes to both residential aged care and home care. Here’s what you need to know:
Residential care – accommodation
Approval cap for RADs/RACs to increase to $750,000 (from 1 Jan 2025)
A retention amount of up to 10% over the first five years on RADs/RACs
DAP indexed to CPI
Possible removal of new RADs from 2035
Potential increases to room subsidies for low-means residents
Residential care – daily fees
The current means-testing system will be replaced with three categories:
Everyday living expenses – residents with assets above $238,000 or income above $95,400 may pay up to $12.55/day more
Clinical care – fully funded by government
Non-clinical care – contributions of up to $101.16/day for higher-asset or higher-income residents
Lifetime cap – contributions limited to four years or $130,000 (indexed).
Home care – Support at Home program
Starts 1 November 2025 with 10 package levels (higher support than current Level 4)
Clinical care fully funded by government
Full pensioners – pay 5% of independence support and 17.5% of everyday living costs
Self-funded retirees – pay 50% of independence support and 80% of everyday living costs
Part-pensioners/CSHC holders – means-tested in between
Lifetime cap – $130,000, aligned with residential care
Unspent funds – capped at $1,000 or 10% of package budget per quarter
Our approach to aged care planning
We don’t just look at costs on the day you enter care. Our process considers:
Entry – what changes immediately
Ongoing – how income, fees and assets evolve
After two years – key pension and assessment changes
Estate stage – planning for what happens later
This forward planning helps avoid nasty surprises and ensures you don’t run out of money.
Don’t wait until it’s too late
The new rules mean that acting sooner rather than later could save you thousands. The next few months may be the best time to seek advice and, if needed, enter care before the changes take effect.
Let us take away the stress and give you clarity.
👉 Click here to book an appointment to discuss and understand your needs