Moving into Aged Care with a Partner Still at Home

Moving into Aged Care with a Partner Still at Home

ByRob Laurie

Last updated: 12 February 2026.

This article is general information only and doesn’t consider your personal circumstances. Rules and thresholds change. Always confirm details with My Aged Care, Services Australia and the Department of Health, Disability and Ageing before acting.

Moving into aged care with a partner still at home: what to do first

When you’re moving into aged care with a partner still at home, the financial planning challenge changes completely. You’re not only funding aged care fees — you’re also keeping the household running for the spouse at home (rates, insurance, utilities, food, transport) while meeting residential aged care costs.

In this situation, the biggest risks we see are:

  • Making a RAD/DAP decision that leaves the at-home partner short of cashflow
  • Assuming the family home is treated the same way under Centrelink and aged care (it isn’t)
  • Missing an “illness-separated” Age Pension outcome that could materially change income
  • Acting quickly (often under stress) and locking in an avoidable or hard-to-reverse decision

Key takeaways

  • Plan for two households: care costs + the at-home partner’s living costs need to work at the same time.
  • Everyone pays a basic daily fee in residential care (indexed; confirm the current amount on the Department of Health page).
  • Means-tested costs depend on your fee arrangements and your means assessment (Services Australia or DVA advises the amounts).
  • The family home is treated differently under the aged care means test vs Centrelink/DVA — model both.
  • Illness-separated pension rules may apply (often paid at the single rate, but assessed on combined income/assets).
  • RAD vs DAP is usually about liquidity and safety when one spouse remains at home.
  • Avoid rushed gifting/asset shifting: deprivation rules can keep “gifted” amounts assessed and reduce payments.

Residential aged care fees: what you may pay

My Aged Care explains that residential aged care costs can include different components depending on your circumstances and fee arrangements. A useful first step is to understand the categories of costs and how the means assessment works.

In broad terms, families should plan for:

  • Basic daily fee (paid by all residents)
  • Means-tested fees/contributions (varies by fee arrangements and means assessment)
  • Accommodation costs (RAD/DAP or an accommodation contribution if eligible for assistance)
  • Optional fees (e.g., higher everyday living fees where chosen)

Government overview: Aged care home costs and fees (My Aged Care).

The means assessment: who does it and what it looks at

My Aged Care explains you need a means assessment to determine what you may pay and what the Government contributes. For most people it is done by Services Australia; if you receive a means-tested DVA payment, DVA does the assessment.

Start here: Means assessments for residential aged care (My Aged Care).

For a deeper explainer on what’s assessed and why it matters, see: Aged care means testing.

Basic daily fee: the “non-negotiable” baseline

The Department of Health explains every resident pays a basic daily fee to contribute to daily living costs, and the amount is indexed (so it changes when Age Pension rates change).

Confirm the current basics here: Basic daily fee (Department of Health).

Why it matters for couples: the basic daily fee is a predictable baseline that must be paid alongside accommodation costs and personal expenses — without undermining the spouse at home.

Means-tested fees and contributions

The Department explains that means-tested fees sit in addition to the basic daily fee and accommodation costs, and Services Australia advises the amounts based on the aged care means assessment. Caps may apply depending on the fee arrangements.

Official overview: Means-tested fees (Department of Health).

Why this matters when one partner remains at home: it’s not enough to know you will pay “a means-tested fee”. You need to know which arrangement applies and whether the at-home partner’s security is being protected.

The family home when a spouse stays there

When one partner stays living in the family home, the home is often treated favourably — but the rules differ depending on the system (Centrelink/DVA vs aged care means assessment). This is one of the most common places families accidentally apply the wrong rule.

Start here for the detailed mechanics and practical scenarios: The family home when moving into care.

If you’re weighing the “keep vs rent vs sell” choice, this companion guide is also relevant: Renting vs selling the family home.

Age Pension: illness-separated couples and reporting

If one partner is in care and the other remains at home, the couple may qualify as an illness-separated couple. The Social Security Guide states illness separated couples are entitled to the illness separated rate (paid the same as the single rate), but the amount paid takes into account the combined income and assets of both members.

Official guidance: Illness separated couples (DSS Social Security Guide).

Practical note: this is often a meaningful cashflow lever — especially where the at-home partner’s budget is tight — but it is not automatic. Eligibility and calculations still require careful assessment and correct reporting.

Preserving cashflow for the partner at home

When one person enters care, families often focus on the resident’s fees and overlook the at-home partner’s needs. A resilient plan usually includes:

  • A cash buffer (so decisions aren’t forced under pressure)
  • Stable income to fund living expenses at home
  • Clear separation of responsibilities (who pays what, from which account)
  • Scenario planning for the “second transition” (discussed below)

If the at-home partner is likely to need support soon, it’s often better to protect flexibility now rather than exhaust resources paying a full RAD immediately.

Moving into aged care with a partner still at home: RAD vs DAP

When a partner remains at home, RAD decisions are rarely about “what’s cheapest on paper”. They’re about liquidity and safety.

My Aged Care explains that for accommodation costs you agree a room price and you may pay as a refundable lump sum, daily payments, or a combination. You generally need a means assessment and fee advice letter to understand your costs.

Government explainer: Understanding accommodation costs (My Aged Care).

Practical options often include:

  • Part RAD + part DAP to preserve a buffer for the at-home partner
  • Delaying a full RAD until the home decision is clearer (rent vs sell vs retain)
  • Full RAD only when there is surplus capital and the at-home partner’s needs are already secured

Related reading:

Need this mapped to real numbers (fees, pension, cashflow, and “what if” scenarios)? Online advice can give you clarity quickly, without locking in a rushed decision.

Worked example (simple numbers)

Example only: This is illustrative and uses simple numbers. It is not financial advice and doesn’t include all possible fees or caps. Always confirm your costs via provider documents and government assessments.

Scenario

  • One partner enters residential care; the other remains at home.
  • Room price: $550,000 (example only).
  • Liquid savings available after an emergency buffer: $250,000 (example only).
  • At-home partner needs $3,500 per month for living costs (example only).
  • Home decision not final (retain vs rent vs sell still being considered).

Option A: Pay full RAD ($550,000)

  • May require a rushed sale of property or liquidation of investments.
  • Risk: the at-home partner may lose liquidity and flexibility if circumstances change.

Option B: Pay DAP only

  • Preserves capital for the at-home partner.
  • Risk: daily payments must be funded reliably from income/cashflow.

Option C: Part RAD ($200,000) + part DAP

  • Preserves a buffer and supports the at-home partner’s monthly budget.
  • Reduces (but does not eliminate) ongoing daily accommodation payments.
  • Buys time to confirm pension, home pathway, and tax implications before committing to a full RAD.

Key idea: in couples planning, “best” often means “most resilient” — the option that protects the at-home partner’s security while still meeting care costs sustainably.

Gifting and “asset shifting”: caution required

In couple scenarios, families sometimes consider gifting or transferring assets to reduce fees. This is an area where people can get hurt financially. Services Australia applies gifting (deprivation) rules and excess gifts can continue to be assessed for a period, potentially reducing payments and complicating planning.

If this is on your radar, read this first: Gifting rules: impact on aged care fees and the Age Pension.

Practical warning: gifting that weakens the at-home partner’s security is usually the wrong trade-off, even if it slightly improves a means-tested outcome.

When one partner enters care, it’s a natural trigger to review the documents that keep everyone protected — especially if capacity may change over time. At a minimum, confirm:

  • Enduring Power of Attorney and who can act
  • Health directives / guardianship arrangements (as relevant)
  • Will and estate plan alignment (including the treatment of a RAD refund)

Related reading: Power of attorney and aged care: what you need to know.

Tax considerations (CGT timing and avoidable surprises)

If funding aged care involves selling investments or property, capital gains tax can become a material cost — especially if decisions are rushed. Timing can matter, and the family home can be treated differently from an investment property.

If the plan involves the family home, start with: The family home when moving into care, and consider obtaining tax advice before executing any sale strategy.

Planning for the second transition

One of the biggest mistakes couples make is spending the “whole chessboard” on the first move — using most assets to pay a full RAD, then having limited flexibility when the at-home partner later needs support or residential care.

A robust plan usually considers:

  • What if the at-home partner needs home support first?
  • What if they later need residential care too?
  • What assets are reserved to fund the second transition?
  • What happens if the home must be sold later?

Step-by-step decision checklist

  1. Start the means assessment process (and keep records of what you submit): My Aged Care means assessment info.
  2. Confirm fee arrangements and provider documentation so you know which cost categories apply.
  3. Lock in the at-home partner’s budget: what is required each month to live safely and comfortably?
  4. Decide the home pathway: keep, rent or sell (and model each). Start here: family home guide.
  5. Choose RAD/DAP with liquidity in mind: avoid leaving the at-home partner “asset rich, cash poor”.
  6. Check illness-separated pension impact and confirm eligibility/reporting: DSS illness-separated guide.
  7. Update legal documents (especially POA): POA guide.

Common mistakes

  • Paying a full RAD too early and leaving the at-home partner short of cashflow
  • Assuming Centrelink/DVA rules and aged care rules treat the home the same way
  • Missing illness-separated outcomes due to incomplete reporting or assumptions
  • Rushing asset sales without considering tax timing and longer-term housing needs
  • Gifting/asset transfers that trigger deprivation rules and reduce pension entitlements
  • Not planning for the second transition if the at-home partner later needs care

FAQs

Do we still pay the basic daily fee if one partner remains at home?

Yes. The basic daily fee applies to residents in aged care. Confirm the current amount and indexation details with the Department of Health: basic daily fee information.

Are we assessed as singles for the Age Pension if one partner goes into care?

You may qualify as an illness-separated couple and be paid at the single rate. However, the assessment still takes into account combined income and assets. See: DSS illness-separated couples guidance.

Where do we find out exactly what fees will apply?

Typically, you need a means assessment outcome and related advice to understand what you may pay. Start here: My Aged Care means assessment overview.

What’s the best RAD strategy when one partner stays at home?

There isn’t one best answer. The right approach depends on cashflow needs at home, the home decision (keep/rent/sell), asset mix, and fee arrangements. A common approach is a part RAD to reduce DAP while preserving a buffer for the at-home partner.

Can we switch from DAP to RAD later?

Often yes — many residents pay daily amounts initially and then pay a refundable lump sum later. Check the accommodation agreement and confirm practical timing with the provider. Government explainer: My Aged Care accommodation costs.

Should we rent or sell the home to fund fees?

It depends. Renting can help cashflow but may affect pension and aged care outcomes. Work through both pathways: renting vs selling the family home.

What to do next

When one partner enters care and the other remains at home, the goal is to protect both people — care quality for one partner and financial security for the other.

General advice only: This information is general in nature and doesn’t consider your objectives, financial situation or needs. Aged care and Centrelink rules can change — confirm details with Services Australia/My Aged Care or seek personal advice.

If you want help: If you’d like these decisions turned into a clear plan with scenarios (fees, pension, cashflow, and home options), an online consult can help you avoid rushed choices and protect the at-home partner’s budget while funding care sustainably.

Internal links

External links

Moving into Aged Care with a Partner Still at Home

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