A huge number of Australians are retiring and downsizing in the years ahead. (Source: Getty) <\/p>\n
If you\u2019re thinking about downsizing from your family home into residential aged care, you\u2019re probably wondering how the recent changes to the aged care system might affect you.<\/p>\n
Fair enough! It’s a big decision, and aged care can feel like a maze. Here\u2019s the simple version.<\/p>\n
The amount the government contributes to your aged care depends on an income and assets test \u2013 this is where Services Australia comes in.<\/p>\n
RELATED<\/p>\n
This could be a contribution toward residential aged care fees.<\/p>\n
There have been some changes to the way these are worked out, so if you want to dig into the detail, you can find the full rundown on the My Aged Care website<\/a>.<\/p>\n But here\u2019s some helpful information if you need aged care assistance.<\/p>\n Register with My Aged Care and answer some questions over the phone. This leads to a formal visit from an assessment organisation, who determine the level of care you need. When it comes to the level of care you need, the Department of Health, Disability and Ageing takes the lead.<\/p>\n You\u2019ll also need your \u2018means\u2019 assessed, which is your income and assets, to figure out how much government funding you may qualify for.<\/p>\n For most people the means assessment is done by Services Australia.<\/p>\n If you\u2019re already receiving a means tested government payment, simply ensure your details are up to date.<\/p>\n Completing a means assessment isn’t mandatory. But if you skip it, you\u2019ll likely be charged the maximum fees.<\/p>\n When you complete a means assessment, you will then get a letter explaining whether you need to pay any means-tested fees and information about accommodation costs.<\/p>\n You\u2019ll need this letter to let the aged care home know if you’ll receive government assistance with your accommodation costs.<\/p>\n The outcome of this means assessment is valid for only 120 days. If you don\u2019t enter care within this period, you\u2019ll need to be assessed again.<\/p>\n Every aged care home must publish their maximum room prices in the Find a provider<\/a> tool.<\/p>\n Think of this as a guideline, not necessarily the final price.<\/p>\n You\u2019ll need to agree on a room price and sign an accommodation agreement before you move in.<\/p>\n How much you pay will also depend on your means assessment. The government may pay some or all your accommodation costs.<\/p>\n To help you estimate the numbers, the government has published fee estimator tools on the My Aged Care website<\/a>.<\/p>\n You can also check the Department of Health, Disability and Ageing published fee schedule on their website<\/a> if you want the full breakdown.<\/p>\n What about the family home?<\/p>\n Downsizing to residential aged care from the lifelong family home to a single room can be emotional and challenging.<\/p>\n If you decide to keep your home, only a part of its value is counted in your means assessment. As of July 1, 2025 a capped amount of $206,663.20 or the net market value, whichever is lower, is included.<\/p>\n For couples, each partner is deemed to own half of the home.<\/p>\n Your home won\u2018t be counted as an asset if occupied by a protected person, including:<\/p>\n Your partner or dependent child.<\/p>\n A carer receiving an Australian Government income support payment, who has lived with you for at least two years.<\/p>\n A close relative eligible for an Australian Government income support payment, who has lived with you for at least five years.<\/p>\n Aged Care Specialist Officers<\/a> (ACSOs) within Services Australia can help you understand how the rules apply in your situation.<\/p>\n ACSOs can talk about the different types of care, the process of accessing care and provide financial information about residential aged care services. They can also refer you to an assessment organisation for an aged care assessment.<\/p>\n Appointments can be held in person or through video chat. Simply call Services Australia on 1800 227 475 or visit your local Service Centre.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Kerry Kingham recently dealt with the challenges of finding the best care for her elderly mother. (Source: Supplied) <\/p>\n