Entering aged care, whether for yourself or a loved one, can be one of life’s most emotional and financially complex transitions. 

The rules surrounding aged care fees, government subsidies, and asset assessments can feel overwhelming, especially when combined with decisions about selling the family home or protecting an inheritance. 

This is where a qualified financial adviser can make a world of difference — by providing clarity, structure, and confidence at every step.

The Top 5 Things to Ask Your Financial Adviser About Aged Care

1. How will my assets and income affect aged care costs?
   Aged care fees are determined by both your income and assets, so it’s vital to understand how Centrelink or the Department of Veterans’ Affairs will assess them. Ask your adviser to explain how your investments, superannuation, rental income, or the family home will be treated in the means test. Even small changes — such as who owns certain assets or how they’re structured — can significantly impact daily accommodation payments (DAPs) and means-tested care fees.
2. Should I sell or keep the family home?
   This is one of the biggest decisions families face. Selling the home can release funds to pay for accommodation and care fees, but it may also reduce eligibility for the Age Pension. On the other hand, keeping the home could preserve some pension entitlements but may require careful cash flow planning to cover ongoing costs. A financial adviser can model both scenarios, taking into account your care needs, pension eligibility, tax implications, and estate wishes.
3. What payment options are available for aged care fees?
   Aged care costs can be paid through a lump sum refundable accommodation deposit (RAD), a daily accommodation payment (DAP), or a combination of both. Each option has different impacts on your liquidity, estate, and government support. Ask your adviser which option best suits your financial goals — and whether a partial RAD or strategy to draw down from investments might offer the right balance between flexibility and cost.
4. How can we manage tax effectively through this transition?
   Entering aged care often involves asset sales, investment restructuring, or changes to income streams. These can trigger capital gains tax, impact taxable income, or affect franking credit refunds. A skilled adviser can help plan the timing and structure of these changes to minimise tax while maintaining access to income and care funding.
5. How will this affect my estate planning and family arrangements?
   A move into aged care often raises difficult questions about future inheritances, enduring powers of attorney, and how to fairly divide assets among family members. Your adviser can help ensure your estate plan, superannuation nominations, and legal documents are aligned with your aged care strategy, reducing potential disputes and protecting your wishes.

The Top 3 Ways a Financial Adviser Can Help With Aged Care

1. Navigating the rules and reducing costs
   Aged care fee structures can be confusing — combining daily care fees, means-tested fees, and accommodation costs. Advisers familiar with aged care can identify strategies to reduce these expenses, such as structuring assets to preserve pension eligibility, using RAD/DAP combinations strategically, or ensuring that income is drawn in the most tax-efficient way.
2. Creating a clear, sustainable cash flow plan
   Your adviser can map out how your income sources — from pensions, superannuation, investments, or rent — will cover care fees and living expenses. This ensures you or your loved one can afford quality care without unnecessary financial stress. Good advisers also anticipate future costs as care needs increase, giving families peace of mind.
3. Supporting family decision-making
   Aged care planning isn’t just about money — it’s also about family harmony. Advisers can act as a neutral third party, helping families balance financial realities with emotional needs. They can facilitate discussions about fairness, inheritance, and responsibility, ensuring everyone understands the financial implications of each decision.

Final Thoughts

The aged care system in Australia is complex, but it doesn’t have to be overwhelming. By asking the right questions and working closely with a qualified financial adviser, you can make informed choices that protect both comfort and financial security. Whether it’s understanding the means test, deciding what to do with the family home, or creating a plan for the future, the right advice can make all the difference — giving you confidence that your loved ones are cared for, now and into the future.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)