Facing Aged Care: Understanding Costs Before It’s Urgent

Facing Aged Care: Understanding Costs Before It’s Urgent

Too often aged care planning is left until a fall or sudden illness leaves you scrambling. When decisions must be made quickly, fees and rules feel overwhelming.

Taking time now to understand your options helps you avoid unpleasant surprises and stay in control. Knowledge is power: by understanding the fee structure now, you can tailor your plan and make sure you’re paying what’s necessary.

If you move into a permanent aged care home, there are several types of fees. Everyone pays a basic daily fee to cover meals, cleaning and laundry.

The government sets this fee at 85 % of the single Age Pension, which is about $63.82 per day.

This amount applies every day you’re a resident, even if you’re away overnight.

Beyond this, there are means‑tested fees.

A care fee contributes to your personal and clinical care and is calculated based on your assets and income. An accommodation payment helps pay for your room and depends on your means assessment.

You may choose to pay it as a refundable lump sum, a daily rate or a combination. Those with low income and assets receive government assistance with these costs.

Some homes also offer premium or “extra service” rooms and additional hotel‑style services for a fee. These optional extras, such as upgraded rooms, specialised menus or on‑site hairdressing, can improve your comfort but are not subsidised by the government.

Your principal home is usually exempt from the aged care assets test, especially if your partner continues to live there.

However, selling or renting out the home can end this exemption and affect both your Age Pension and aged care fees.

The key is to plan ahead.

Work out your entitlements and estimate potential fees. Talk to family about whether to sell or keep the family home and consider which payment method suits your circumstances.

You can explore alternatives like home care packages or retirement villages if you value independence but need support.

At Face Up Life we approach aged care conversations with empathy and clarity.

We help you bridge the gap between complex rules and your goals so you can make choices calmly, not in a crisis.

Book your free initial call today and let’s weave your aged care plan into a retirement that feels secure and fulfilling.

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