Table of Contents

Aged care can be a significant financial burden, both for individuals and their families. The Australian Government provides some financial assistance, but the cost of aged care can still be high, especially for those who need high-level care.

It is important to start planning for aged care early, so that you can have a good understanding of your financial options and make informed decisions about your care.

How to budget for aged care

There are a number of factors to consider when budgeting for aged care, including:

The type of care you need

The cost of aged care varies depending on the type of care you need. For example, residential aged care is more expensive than home care.

Your income and assets

The government will conduct a means assessment to determine how much you have to contribute to the cost of your aged care. Your income and assets will affect how much you pay.

The location of the aged care facility

The cost of aged care can also vary depending on the location of the facility. For example, aged care facilities in major cities are generally more expensive than those in regional areas.

Government subsidies and other financial assistance options

The Australian Government provides a number of financial subsidies to help people afford aged care. These subsidies include:

Basic Daily Fee subsidy

This subsidy is paid to all aged care residents, regardless of their income and assets. It covers the basic costs of care, such as food and accommodation.

Accommodation supplement

This supplement is paid to residents who have limited assets and need to pay a high accommodation bond.

Care supplement

This supplement is paid to residents who need high-level care.

There are also a number of other financial assistance options available to help people afford aged care, such as:

Commonwealth Home Support Programme (CHSP)

The CHSP provides funding for a range of home support services, such as personal care, meal preparation and transport.

Home Care Packages (HCPs)

HCPs provide funding for a range of home care services, tailored to your individual needs.

Veterans' Home Care (VHC)

Veterans’ Home Care (VHC) provides funding for home care services to veterans and their families.

Tips for budgeting for aged care

Here are some tips for budgeting for aged care:

Start planning early

The earlier you start planning for aged care, the more time you will have to save money and research your options.

Get professional advice

Aged care financial advisers can help you to understand your financial options and develop a budget that meets your needs.

Shop around

Compare the costs of different aged care facilities and services before you make a decision.

Be aware of your rights

You have the right to choose your own aged care provider and to receive information about the costs of care.

Budgeting for aged care can be complex, but it is important to start planning early so that you can afford the care you need. There are a number of government subsidies and other financial assistance options available to help people afford aged care. If you need help budgeting for aged care, please speak to an aged care financial adviser.