Needing access to care in later life for yourself or a loved one can feel daunting, but it doesn’t have to be. The information below will give you an overview of the aged care system, so you’ll feel better prepared if the time comes.
This page:
By booking a 15-minute phone conversation with our team, you’ll learn more about our Advice services and how they could benefit you.
Government-funded aged care services are regulated by the Australian Government, and the cost of these services is subsidised to make the help you need more affordable. To find out if you are eligible for these services, you are required to complete an assessment.
Non government-funded services are not subsidised or regulated by the Australian Government. You will have to pay the full cost to access these services, whatever your care needs or financial situation. This includes clinical care costs, which is fully funded within government-funded aged care services.
Government-funded aged care services are regulated by the Australian Government, and the cost of these services is subsidised to make the help you need more affordable. To find out if you are eligible for these services, you are required to complete an assessment.
Non government-funded services are not subsidised or regulated by the Australian Government. You will have to pay the full cost to access these services, whatever your care needs or financial situation. This includes clinical care costs, which is fully funded within government-funded aged care services.
Additional service fees - Fees for services that go beyond the minimum care and service requirements.
Extra service fees - Some aged care homes offer extra service rooms and can charge for the bundle of upgraded hotel-type services provided.
Per-service fee – Paid based on the services used. This replaced the basic daily fee which was a fixed cost and charged regardless of what services were accessed.
Means tested contribution fee - For independence services (such as personal care), products and equipment under the Assistive Technology and Home Modifications (AT-HM) Scheme.
Additional services fees - Other amounts you have agreed to pay for additional care and services that wouldn’t otherwise be covered, such as the Higher Everyday Living fee.
If you are eligible for short-term care, you don’t have to complete a means assessment. You may have to pay a daily fee, but how much you may pay varies depending on the type and level of short-term care you will receive.
For government-funded services there are set maximums that providers can charge for care services. These vary depending on the type of care.
The Government provides a fee estimator to assist with understanding how much you might have to pay towards in-home or residential aged care. The figures it provides are an estimate. The exact amount you pay will depend on your financial situation when you or your loved one enters care and the provider you choose.
The Australian Government has developed a new Aged Care Act to strengthen Australia's aged care system.
The new Act is designed to put the rights and needs of older people first, and aims to improve how services are delivered to older people in their homes, the community and aged care.
One of the biggest changes is how aged care is funded, and from 1 November 2025, aged care fees changed. This included how much you and the government contribute and how these amounts are calculated.
New fees such as the Hotelling Supplement Contribution were added to help aged care homes meet the cost of services such as catering, cleaning and gardening.
While the Support at Home program was introduced (replacing the Home Care Packages Program) to ensure that you only pay for the services you access while at the same time aligning the contribution testing with the Age Pension means test.
While the changes came into effect on 1 November 2025, if you were living in or moved permanently into an aged care home on or before 31 October 2025, the residential and accommodation payment arrangements continued under the old model while you remain in care.
?ts=1761695390959&dpr=off)
Funding aged care can be worrying for retirees, but with a bit of planning you’ll feel more secure about your options for the future.
You may want to talk to a financial planner about your finances as some accommodation payment methods may affect your Age Pension and aged care fees. Also, if both you and your partner need access to aged care, each of your accommodation payment methods may impact the other’s aged care fees. So, it’s beneficial to seek guidance before deciding how to pay for your aged care.
If you choose non government-funded services, you will have to pay all the associated fees yourself, so you’ll need to have savings or an income stream available to cover the costs.
If you’re eligible for government-funded services, how much you contribute towards your aged care costs will depend on your financial circumstances. To find out how much you will pay, you will need a means (income plus assets) assessment.
Completing the assessment will tell you whether you are eligible for assistance with your accommodation costs, and what your maximum means tested care fee will be. (You may pay a lower amount depending on your cost of care when you enter the aged care home).
For full pensioners and part pensioners, your contributions will be determined by your existing Age Pension income and assets assessment. Non pensioners will need to provide information about their income and assets to Services Australia to have their contribution rate assessed. Anyone who doesn’t provide this information to Services Australia will pay at the highest rates.
You can ask to be considered for financial hardship assistance. If you are eligible, the Australian Government will pay all your aged care costs.
Aged care financial planning advice helps individuals, and their families navigate the costs and complexities of aged care, ensuring they can afford the care they need while maximising their entitlements and protecting their assets.
A financial planner specialising in aged care will assess your current financial situation, explore various care options, and develop a personalised plan to cover costs like accommodation, personal care, and medical expenses. They can also help with understanding government support, tax implications, and potential impacts on your pension.
What can you expect when engaging with an Equip Super financial planner:
We take the time to understand your health, financial situation, and care goals to develop a plan that suits your needs.
We review your income, assets, and expenses to determine how best to fund your care.
We explain available care types and provide guidance on payment strategies like refundable accommodation deposits.
We help you access government entitlements, understand tax implications, and assess the impact on your pension.
As you navigate the aged care system, we’ll adjust your plan and provide continued support.
We explain everything in plain language and provide a detailed, easy-to-follow financial plan.
By booking a 15-minute phone conversation with our team, you’ll learn more about our Advice services and how they could benefit you.
My Aged Care is the starting point for accessing Australian Government-funded aged care services. They provide the information and support you need to understand, access and navigate the aged care system. You can engage with My Aged Care online, on the phone or in person.
My Aged Care follows a four-step process to assist with implementing aged care services:
Learn about super contributions, retirement, investing and more through interactive modules.
Learn about super contributions, retirement, investing and more through interactive modules.
| We acknowledge all First Peoples of the beautiful lands on which we live and work, and their enduring knowledge and connections to Country. We honour the wisdom of and pay respect to Elders past and present. |  |  |
