THE REAL COST OF AGED CARE:
Aged Care Fees, Costs, Finances & Aged Care Funding Guide
Aged care costs can feel overwhelming, especially when families are trying to understand home care costs, residential aged care costs, government aged care funding and what they may need to pay out of pocket. This guide cuts through the complexity so you can understand the main aged care costs, how fees are calculated and how to plan for care with more confidence.
Aged Care Decisions has partnered with aged care finance expert Rachel Lane to answer your fees, finances and funding questions, so you can make confident decisions for your family.
What's In This Aged Care Funding & Cost Guide
Jump to the section you need
- How Much Does Aged Care Cost in Australia?
- The Real Cost of Staying at Home
- Support at Home Costs & Fees: What You May Need to Pay
- Support at Home Short Term Support Options
- Hidden Aged Care Funding Gaps
- Residential Aged Care Costs: 5 Main Fees to Understand
- RAD Vs. DAP: The Key Accommodation Decision
- What Is The Aged Care Means Test?
- What If I Cannot Afford Aged Care?
- How Most Families Actually Fund Aged Care
- About the Partnership
- Frequently Asked Questions
- Resources New
Stephanie Burdett
Content Writer · Aged Care Decisions
The Question Behind Every Decision
When families first start thinking about aged care, the question they ask is usually simple:
“How much is this going to cost?”
But the real question isn’t one question, it’s four:
- “Where are you going to live?”
- “What care will you need?”
- “How much will it cost?”
- “How are you going to pay for it?”
Aged care is not a one-off expense. It is not like buying a car or even renovating a home, although that may be part of it. It is often a mixture of upfront expenses with an ongoing cost that typically increases over time.
This aged care cost guide is designed to help you understand:
- What aged care actually costs at home and in residential care
- How the system decides what you need to contribute
- How to fund care without breaking your financial plan
Disclaimer: This page provides general information only and is not personal financial advice.
Page last updated 25/05/2026
KEY TAKEAWAYS
- Aged Care in Australia is means-tested. Your income and assets dictate your personal contributions for both home and residential care.
- Your home is generally not counted in the means test while you receive Support at Home but the rules change if you move into residential aged care.
- Aged care is rarely a one-off expense. It's often a mixture of upfront costs and ongoing fees that increase over time.
- Clinical care at home is fully funded. The government covers 100% of the cost for in-home clinical care, regardless of your financial situation.
- Financial hardship assistance is available if you cannot afford your assessed care contributions.
How Much Does Aged Care Cost in Australia?
Aged care costs are shaped by the type of care you receive, and what you pay can change as your needs change over time.
Support at Home Costs
The government subsidises the cost of home care through a quarterly budget, with your funding level based on your assessed support at home classification (1–8), from light assistance through to intensive daily care.
You may pay co-contributions for some services, with the amount depending on your income and assets. To understand how these contributions may apply in practice and compare typical service prices, read our Support at Home fees and price list.
Clinical care services have a 0% co-contribution and are fully funded by the government regardless of your financial situation.
- Find out what you can spend your Support at Home budget on.
Residential Aged Care Costs
The government subsidises your care costs but residents also contribute through a basic daily fee, accommodation payments and, for some people, means-tested contributions.
Accommodation can be paid as a lump sum (Refundable Accommodation Deposit—RAD), a daily payment (Daily Accommodation Payment—DAP), or a combination of both.
Room prices are set by the provider but subject to a government cap, unless the provider has approval to charge more.
For more details, read our nursing home and residential aged care costs guide.
The Real Cost of Staying at Home
For most people, the preference is clear: stay in the family home they have lived in for decades, for as long as possible.
It feels familiar. It feels safe. And it feels, at least initially, like the more affordable option.
But the reality can be more complex. The decision to stay in the family home is often made much earlier, when you are younger, your partner is still living with you and care is not yet part of daily life.
When care does become necessary, the way you experience your home can change. The place that once felt comfortable and secure can sometimes feel more challenging. It may become harder to get around, concerns about falls or managing stairs can increase, and the risk of being alone in an emergency can become more of a consideration.
It can also become more isolating for some people. Getting out is more difficult and social connections may reduce over time.
At that point, the question is not just whether you can stay at home. It is how well your home is supporting you.
When people hear the words “Home Care” most think of a nurse coming to the home regularly to assist with showering, dressing and medications. The reality is that there is a wide range of care and support you can receive while you are living at home, some are short term like Short Term Restorative Care or the Assistive Technology and Home Modifications program. Of course there is also long-term package funding for ongoing services such as:
- Personal care (showering, dressing)
- Domestic help (cleaning, meals)
- Clinical care (nursing, allied health)
- Social support and transport
For many people Support at Home will provide funding for a combination of both short term and long term supports. These services are funded partly by the government, and partly by you.
Support at Home Costs & Fees: What You May Need to Pay
The amount you will need to pay towards your Support at Home services depends on two things: the type of service you receive and your income and assets. To understand how your personal contribution may be calculated, read our guide to Support at Home contributions.
Your co-contributions offset the funding for your package on a dollar-for-dollar basis, ensuring that someone of limited means has the same value in their package as someone who is wealthy.
Government Funding
The government subsidises your care through a quarterly budget based on your assessed classification. There are eight classifications in total, ranging from light assistance at Classification 1 through to intensive daily care at Classification 8.
You can also read our full guide to Support at Home classifications to understand how each classification level works and what type of care it may include.
Your classification is determined by a needs assessment conducted through My Aged Care. The key thing to understand is that you are not given unlimited care, you are given a budget to work with.
How Co-Contributions Work
The amount you contribute depends on your income and assets, as well as the type of service you receive. Services fall into three categories, each with different contribution rates:
Clinical care (nursing, allied health, continence support) — 0% co-contribution for everyone, fully funded by the government
Independence services (personal care, social support, transport) — 5% for full pensioners, up to 50% for self-funded retirees
Everyday living services (cleaning, gardening, meal preparation, shopping) — 17.5% for full pensioners, up to 80% for self-funded retirees
This means two people receiving exactly the same services can pay very different amounts depending on their financial situation.
The Lifetime Cap
There is a lifetime cap of $137,917 that applies across Support at Home and Residential Aged Care. This is indexed twice yearly in March and September. Once you reach the cap, your co-contributions for Support at Home services stop. However, it is unlikely you will reach your lifetime cap while still receiving Support at Home. This becomes more likely if you later move into residential aged care.
For the latest indexed rates, caps and government thresholds, view our schedule of aged care fees and charges for residential and home care.
| Quarterly Budget | Annual Budget | Care Overview | |
|---|---|---|---|
| 1 | $2,683 | $10,732 | Minimal support — Light housework, meal delivery, welfare check-ins. For largely independent individuals. |
| 2 | $4,008 | $16,035 | Light personal care — Assistance with dressing, showering, medications, and social activities. |
| 3 | $5,491 | $21,966 | Moderate support — Regular personal care, mobility aid support, meal prep, household cleaning. |
| 4 | $7,424 | $29,696 | High-frequency support — Daily routines assistance, home modifications, toileting, continence care. |
| 5 | $9,924 | $39,697 | Daily support & health coordination — Hoists, transfers, transport to medical appointments, in-home safety monitoring. |
| 6 | $12,028 | $48,113 | Comprehensive care — Nursing support (wound care, medication), continence management, allied health therapies. |
| 7 | $14,536 | $58,147 | Intensive daily care — Assistance with all daily living activities, complex health conditions, dementia support. |
| 8 | $19,526 | $78,106 | Highest level of care — Palliative support, 24/7 availability, specialised equipment, nursing interventions. |
last updated 25/05/2026
Learn more about Support at Home Services and out-of-pocket costs
Complete Support at Home Service List (Inclusions & Exclusions)
The new Support at Home service list groups care into Clinical, Independence, and Everyday Living categories, each with different government subsidies. Understanding how these fit together, and what you’ll pay, is key to planning your care.
Demystifying Support at Home Fees and Out-Of-Pocket Costs
Confused by the new aged care fee structures? This practical guide explains how Support at Home fees work, what out-of-pocket costs you can expect, and what questions to ask providers so you can maximise your government funding.
Support at Home Short-Term Support Options
In addition to ongoing funding, there are several short-term programs designed to help people recover or manage specific needs.
Short-Term Restorative Care
Up to 8 weeks of fully government-funded support to restore independence after illness, injury, surgery or hospitalisation.
Co-contribution:
$0
Duration:
Up to 8 weeks
Covers:
Physio, OT, nursing, personal care & equipment.
Best for:
People who need support for a short intensive recovery period.
Time-limited. Ongoing needs require a separate Support at Home assessment
Assistive Technology & Home Modifications
Separate funding pool for independence equipment & home modifications.
Funded:
Up to $15,000
Your Cost:
The difference
Covers:
Equipment (walkers, shower chairs) and home modifications ( rails, ramps).
Timeframe:
People who need specialised equipment or physical changes to their home.
Example: $45,000 in total costs = $15,000 funded. You pay $30,000
End of Life Pathway
A higher-funded, separate pathway for people in the final stages of life to support the wish to remain at home during palliative care.
Clinical care:
0% contribution
Other services:
Means tested
Covers:
Nursing, palliative support, and independence services.
Timeframe:
Generally within approximately three months of end of life.
Assessed and activated separately from your ongoing package.
Residential Aged Care Costs: 5 Main Fees to Understand
Understanding what you will actually pay starts with knowing which fees apply to you. Residential care has five main aged care accommodation costs, and they work very differently from each other. Some are fixed, some are income and asset tested, and some are optional. For a more detailed breakdown about the costs involved in residential care, read our full guide to residential aged care fees and nursing home costs.
1
Accommodation
Paid as a lump sum (RAD), daily payment (DAP) or a combination. Room prices are set by the provider.
Means Tested
2
Basic Daily Fee
Set at 85% of the Age Pension. Covers meals, cleaning, laundry and utilities. Everyone pays this.
Not Means Tested
3
Hotelling Supplement
Paid in addition to the Basic Daily Fee. Contributes towards meals, cleaning and laundry. Capped at $22/day.
Means Tested
4
Non-Clinical Care Contribution
Covers help with dressing, bathing and mobility. Capped at $107/day. Counts toward the lifetime cap.
Means Tested
5
Higher Everyday Living Fee
Optional extras like premium meals or entertainment. You can opt in or out with 28 days’ notice.
Optional
Important: Your aged care fees are not the same as your cost of living. Even in residential care you will still have personal expenses like medications, haircuts, clothing and home costs if you have kept your former property.
The Key Accommodation Decision: RAD vs DAP
How you pay for your aged care accommodation is often directly linked to the other big financial decision—whether you are going to keep or sell your home. Many people think they have to sell the home to pay the RAD, which is not true. How you pay for your accommodation is completely up to you.
Refundable Accommodation Deposit (RAD)
A lump sum paid to the provider. Mostly refunded when you leave (less a 2% per year retention fee, capped at 10% after 5 years).
PROS
- Simple lump sum; eliminates daily accommodation payments.
- Age Pension exempt (could actually increase your pension).
- Allows deduction of other care fees from the balance.
- Balance is refunded to your estate (less retention fees).
CONS
- Counted in aged care means test (may increase care fees).
- Loses 2% per year to government retention fees (capped at 10%).
- Locks away capital from being used elsewhere.
- Misses out on potential investment returns.
Daily Accommodation Payment (DAP)
A daily rental payment instead of a lump sum. Currently calculated at 7.96% p.a. of the unpaid RAD (as at 1 April 2026), indexed twice yearly.
PROS
- No large upfront lump sum required.
- Preserves assets (like the family home) from being sold.
- Retains the flexibility to pay down the RAD later.
- Leaves your capital free to invest or spend elsewhere.
CONS
- Acts like an interest-only loan; principal never reduces.
- Interest rate is usually higher than investment returns.
- Indexed to CPI, so your daily payments will increase.
- Creates an ongoing monthly drain on your cash flow.
The Combination Option
You can pay part RAD and part DAP. If you choose to deduct your DAP from your RAD, be aware that as your RAD balance reduces, your DAP increases, and it accelerates a little like a reverse mortgage. Think carefully before going down this path.
Get specialist advice before you decide.
This decision can affect your cash flow, pension, tax, investment strategy, estate planning and the cost of your care. Always speak with a financial adviser who specialises in aged care before committing.
What Is The Aged Care Means Test?
The aged care means assessment is used by the government to calculate how much you need to pay towards your Support at Home or residential aged care. It is one of the biggest sources of confusion and anxiety for families, but understanding what is included can help you plan better.
The means test assesses your total assets and income. If you are part of a couple, both your combined assets and income are assessed on a 50/50 basis, regardless of who legally owns them.
- Bank accounts, term deposits & debentures
- Superannuation account balances
- Shares, managed funds, securities & loans
- Investment properties, family trusts & businesses
- Personal assets such as cars & contents
- Gifts made that exceed the allowable gifting limits
- Your home, while you are receiving Support at Home
- Gifts within the allowed limits ($10,000 per financial year or $30,000 over five years)
- Prepaid funerals
- Up to two funeral bonds (combined limit of $15,750)
- Payments received under the National Redress Scheme
If you receive Support at Home, your home is completely exempt from the means test.
If you move into residential aged care, your home’s assessable value is capped at $214,884. Any value above this cap is not assessed, and you are never forced to sell.
However, if you rent it out, that rent is counted as assessable income.
When is the home fully exempt in residential care?
Your home is entirely exempt if a Protected Person still lives there. This includes:
Your spouse or a dependent child.
A carer who has lived there for 2+ years on an eligible Income Support Payment (like the Carer Payment, but not Carer Allowance).
A close relative who has lived there for 5+ years on an eligible Income Support Payment.
Aged Care Means Test vs Age Pension Means Test
Aged Care Means Test
What is assessed
- Bank accounts, term deposits, debentures & loans
- Superannuation account balances
- Shares, managed funds & securities
- Investment properties, family trusts & businesses
- Personal assets such as cars & contents
- Gifts made that exceed the allowable gifting limits
- Your RAD is counted as an assessable asset
- Your home if no protected person lives there, capped at $214,884
What is NOT assessed
- Your home, while you are receiving Support at Home
- Gifts within allowed limits ($10,000 per financial year or $30,000 over 5 years)
- A prepaid funeral
- Up to two funeral bonds (combined limit of $15,750)
- Payments received under the National Redress Scheme
Age Pension Means Test
What is assessed
- Bank accounts, term deposits, debentures & loans
- Superannuation account balances
- Shares, managed funds & securities
- Investment properties, family trusts & businesses
- Personal assets such as cars & contents
- Gifts made that exceed the allowable gifting limits
- Your home after 2 years of leaving it
What is NOT assessed
- Any RAD you have paid is not assessed
- Your home while you or your spouse live there.
- Your home for 2 years after the last person leaves
- A prepaid funeral or up to 2 funeral bonds (combined limit of $15,750)
- Gifts within allowed limits ($10,000 per financial year or $30,000 over 5 years)
- Payments received under the National Redress Scheme
Should You Complete The Aged Care Means Test?
Are You A Self-Funded Retiree?
While hospital discharge planners and aged care homes often imply that completing the means assessment form is mandatory, it is actually optional.
If you choose not to complete it, you will simply pay the maximum means-tested fees for your care setting. For full pensioners with simple finances, completing the assessment usually makes sense because you will pay less. It is also required if you want to be classified as a low means resident.
However, for self-funded retirees or part-pensioners, especially those with family trusts, private companies or investment properties, compiling the required financial statements and tax returns can be arduous and costly. If your assessable assets are around $1,000,000 or higher, you are likely to pay the maximum fees anyway, so you should weigh up whether the effort of disclosing your finances will actually reduce your costs.
Watch out for Deeming
Deeming often catches self-funded retirees by surprise. For the means test, the government doesn’t look at your actual taxable investment income. Instead, they apply a set “deeming rate” to assume what your financial assets earn:
1.75% on the first $64,200 (for singles) or $104,200 (for couples).
3.25% on any balance above those amounts
| Your situation | Likely outcome |
|---|---|
| Full pensioner | Yes — you’ll likely pay less |
| Part pensioner | Calculate first |
| Self-funded / assets near $1M+ | May not reduce your fees |
What If I Cannot Afford Aged Care?
If your assessed contributions feel unmanageable there are options available to you. The government offers a financial hardship assistance program that can reduce or waive your means-tested fees if you genuinely cannot afford them.
To be eligible, you must have completed a means assessment, have assessable assets under $46,835.10 (excluding unrealisable assets like a home you cannot sell) and not have gifted above the allowable limits.
Financial Hardship For Home Care
If you cannot afford your co-contributions for independence or everyday living services, you can apply for hardship assistance.
If approved, your co-contributions are reduced or waived.
Services Australia will review your total income and deduct your essential living expenses (like food and utilities). If the amount you have left over is less than 15% of the basic age pension amount (currently around $165 per fortnight), you may be eligible for a full fee reduction. If you have slightly more than that left over, you may still qualify for a partial reduction.
(Note: This rule is just a benchmark used by the government. Part-pensioners and self-funded retirees can also apply if their assets are below the hardship threshold)
Safety Nets For Residential Care
Hardship assistance in residential care works differently. It can reduce or waive your:
Non-clinical care contribution
Hotelling supplement
Accommodation costs (in limited circumstances)
Important: The basic daily fee (which covers meals, cleaning and utilities) can only be waived if you are receiving residential respite care. For permanent residents, the basic daily fee is generally not covered by hardship assistance. Services Australia will also check if you have explored options like the Home Equity Access Scheme before granting assistance for residential care.- For more information on how to apply see our 8-step guide to applying for a financial hardship support under Support at Home.
How To Apply For Financial Hardship
Complete the form
Complete the Aged Care Claim for Financial Hardship Assistance form (SA462). Available online or by calling Services Australia on 1800 227 475
Gather your evidence
Gather three months of bank statements, plus bills that prove your essential living expenses
Submit your application
Submit your application and notify your provider so they can pause your fee collections during the 28-day assessment period
How Families Typically Fund Aged Care
In most cases, there isn’t a single answer. Aged care is typically funded from a combination of three sources, and the order in which you draw on them matters.
1
Income
The Age Pension, investment income, or superannuation drawdowns. Using income first is generally the least disruptive approach — it doesn’t require major changes to your financial position.
2
Assets
Savings, investments and super balances can supplement income when it’s not enough. The key questions are how quickly those assets will be used, what needs to be retained as a buffer, and how drawing on them now might affect your flexibility later.
3
The Family Home
Often the largest asset but also the most emotionally significant. Options include renting it out, selling it, or accessing equity through a reverse mortgage. Each comes with trade-offs for cash flow, tax, pension and estate planning.
“The right aged care decision is not always the cheapest one—it’s the one that works now and into the future.”
Rachel Lane, Aged Care Gurus
Why We Have Partnered With Rachel Lane and VillageGuru
Aged Care Decisions has partnered with Rachel Lane and Aged Care Gurus to make sure the information we give you goes beyond simply finding a provider. Helping you understand what aged care will cost and why.
Rachel Lane is one of Australia’s most trusted aged care finance experts. As the founder of Aged Care Gurus and creator of the Village Guru software that will produce your customised Support at Home Costs Report, she has spent decades helping Australians navigate the financial complexities of aged care. Her work is read by thousands through the Sydney Morning Herald, The Age and the Brisbane Times, and she is a regular voice on radio and television. She is the co-author of several bestselling books, including Aged Care, Who Cares? and Downsizing Made Simple, written with Noel Whittaker.
Together, our partnership will bring you better information so you can make decisions about your home care with confidence.
Rachel Lane
Contributing Author – Creator of VillageGuru
About Your Support at Home Costs Report
The Aged Care Decisions team are here to help families find the right Support at Home provider. But finding the right provider is only half the picture. Understanding what care will actually cost you is the other half, and that is exactly what this report is designed to do.
From June 2026 for a limited time only, alongside your free custom Support at Home Provider Options Report from Aged Care Decisions, you will also receive a free, custom Support at Home Costs Report to give you a clear, personalised view of your likely home care costs based on your financial situation.
Our goal is simple: to make sure you go into every conversation, whether with a provider, a financial adviser or your family, fully informed and ready to make the decision that is right for you.
Frequently Asked Questions
How much does it cost to stay at home with home care?
The cost of staying at home is going to depend on a number of factors including: how much care you need, how much informal support you have (from family or friends), the extent to which your home will need to be modified, how long you need to wait for government funding and what your co-contributions will be.
Many people think the only cost will be their means tested contributions – and they can certainly add up quickly – but the “care gaps” of home modifications (which can be tens of thousands of dollars upfront), the waiting time for government funding (which can be 12 months from application to receiving the package) and the need to pay for private care while waiting and top up care once the package commences can be much more expensive.
What does the government actually pay for?
The government subsidises a package of care services designed to help you stay at home. This can include: home modifications, personal care, nursing, cleaning, and some allied health services.
The funding is capped, your home modifications can be paid as a lump sum, funding for your ongoing supports will be allocated as a quarterly budget—both have limits. Your Support at Home services are classified into three groups: clinical care, independence and everyday living. The government fully fund the clinical care services in your package (there is no co-contribution), independence services attract a co-contribution of between 5% and 50% and everyday living attracts a co-contribution between 17.5% and 80% of the service fee.
Why isn’t my Support at Home package enough?
There are a few reasons why people find that their Support at Home Package is not enough. The first is that the level of your package is based on your needs assessment which was likely completed months earlier and your care needs have changed. If at the assessment you weren’t forthcoming about all of your care needs then that initial assessment could have underestimated your needs and given you a lower level of package than you need. Care funding always follows assessment so there will always be a lag between your needs and your funding. Support at Home Packages are rationed. When you get your package, you may be given an interim package, which is a package at a lower level than your assessed need, while you wait for a package at your level to become available.
Another factor is how the package is used. There is an administration fee of up to 10% that will be deducted from the package, this reduces what’s available for direct care. The second element is the price of services and minimum service times, which can vary widely from one provider to another. To make sure you are getting good bang for your buck it is worth comparing the package of services you are (or will be receiving) across a few providers.
The bottom line is that a Support at Home package is a designed to provide a limited budget of funds to help you stay at home, it’s often not enough to fully meet your care needs and the gap can quickly widen when your needs change.
Can I top up my home care services privately?
Yes—and many people do.
Topping up privately allows you to access more hours of care, it can also give you more flexibility in timing and additional services that aren’t covered by your package. It’s often how people bridge the gap between what the government funds and what they actually need. For part pensioners and self-funded retirees who need to pay the highest co-contributions buying those services privately may actually work out cheaper than buying the through the package with a co-contribution of up to 80%.
The decision usually comes down to priorities. Some people use private funds to stay at home longer. Others limit spending to keep costs under control.
There’s no right answer—but it’s important to recognise that topping up is not unusual. In fact, it’s often part of making home care work in practice.
What happens when my care needs exceed my package level?
When your needs exceed your current package, you have three main options: wait, pay, or reassess.
You can apply for a higher-level package, but it’s not instant, there will be a delay. In the meantime, you can try to make do with your existing services or “top up” by getting help from informal carers like family, friends and neighbours or paying privately to get all the care you need.
For some people, this is manageable. For others, particularly where care needs are increasing quickly, the gap can become difficult to sustain—both financially and practically.
This is often the point where families start to consider whether staying at home is still viable, or whether alternative care options need to be explored. A respite stay in an aged care home can be a great option, it ensures you receive the care you need, enables you to see if the home could be a good next move and is very affordable because you only pay the Basic Daily Fee (plus any extras).
Will I have to pay more if I have savings?
The short answer is Yes, but it depends on how much you have.
Your contribution to your Support at Home package is based on your assets and your income.
As a general rule, full pensioners with modest levels of assets and income pay the minimum contributions of 5% for independence services and 17.5% for everyday living services. Self-funded retirees can pay the maximum contributions of 50% for independence services and 80% for everyday living services. Part pensioners pay between 5% and 50% for independence services and between 17.5% and 80% for everyday living, based on their assets and income. Essentially the more you have, the more you contribute.
However, there is a Lifetime Cap which applies to your co-contributions in Support at Home and your Non-Clinical Care Contribution if you subsequently move into residential aged care. Once you reach that limit your contributions stop.
Is my home included in the means test for home care?
No—your family home is generally not included in the means test for calculating your Support at Home contributions.
This is one of the reasons many people choose to stay at home for as long as possible. It allows them to receive subsidised care without needing to make immediate decisions about their property.
However, this changes if you move into residential aged care, where the home is assessed differently.
What is the best way to pay for care at home?
There isn’t a single best way—it depends on your financial situation.
In most cases, care is funded from a combination of income (such as pension or investment earnings) and assets. The key is to balance affordability now with sustainability over time.
The mistake many people make is focusing only on the immediate cost, rather than how long care may be needed and how costs are likely to change.
A structured approach—thinking about what to use first, what to preserve, and how costs may change—can make a significant difference.
This is less about finding the cheapest option, and more about finding one that works over the long term.
Can I borrow against my home to pay for home care?
Yes, there are a few ways to access the equity in your home to pay for home care.
The government’s Home Equity Access Scheme enables you to access up to 150% of the Age Pension as a fortnightly payment. You have the ability to bring forward up to 50% of the pension in any 26-fortnight-period as a lump sum.
There are a number of reverse mortgage products offered by banks and financial institutions that will enable you to access the equity in your home as a lump sum, regular payment or a combination. There are also financial products, often called shared equity, whereby you sell a percentage of your home normally for an upfront lump sum.
These options can provide access to capital, regular payments or a combination of the two which can be particularly useful for people who have most of their wealth tied up in their home.
However, they come with trade-offs—costs, complexity, and potential impacts on your ability to fund care in the future.
It’s important to approach these options carefully and understand the long-term implications, not just the immediate benefit.
Is staying at home cheaper than residential care?
It can be but it will depend on your circumstances.
As a general rule when you need lower levels of care, staying at home is often less expensive. But as care needs increase—particularly if you require frequent or overnight support—the costs can exceed those of residential care.
Home care is delivered in blocks of time, whereas residential care provides continuous support. That difference becomes more significant at higher levels of need.
The better question is not which is cheaper, but which is more appropriate given your situation. Some people think that once their care needs exceed their package and they start paying privately to top up their services they will be financially better off moving into residential aged care – that’s often not the case.
You really need to compare the pair. Look at what it is going to cost you to stay at home, your home expenses, personal expenses, support at home contributions and private care and then compare that with what you will pay for your accommodation and care in an aged care home. Last, but not least, the move into residential aged care can also impact on your Age Pension, so if you get one make sure you understand how the move would affect your payments.
When should I consider moving into residential care?
It’s usually not a single moment, but a gradual shift.
You might start to consider it when care needs become more complex, when safety becomes a concern, or when the cost and coordination of care at home becomes difficult to manage.
Often, families delay the decision for emotional reasons, even when the practical and financial signs are clear.
Thinking about the transition early—before it becomes urgent— this can give you more choices and better outcomes.
How do I know if care at home is no longer viable?
There are usually a few indicators.
Care needs may be increasing beyond what your package can support. Costs may be rising quickly due to private top-ups. You may be relying heavily on family, or feeling unsafe at home.
Sometimes it’s not just one factor, but the combination that makes things unsustainable.
When the effort, cost, and risk of staying at home start to outweigh the benefits, it’s worth reassessing. At that point, the decision is less about preference—and more about what will provide the right level of care and support going forward.
Resources
What Happens to Support at Home When One Partner Enters Residential Aged Care?
Choosing different care pathways for a couple is a significant decision. When one partner needs residential aged care and the other plans to stay at home, your Support at Home and Aged Care funding, Age Pension and household finances all need to be considered. This guide walks you through what changes, what stays the same and what to do next.
Support At Home Personal Care Fees: What Changes from October 2026?
From 1 October 2026, the Australian Government will fully fund personal care services under Support at Home. Showering, dressing and continence care will move from the independence category to clinical care.
What Is The 10% Care Management Fee For Support At Home?
Under the Support at Home program, a mandatory 10% care management fee is automatically deducted from your quarterly budget. This fee covers your dedicated Care Partner, who handles essential clinical oversight, staff scheduling and budget tracking on your behalf.
Government To Fully Fund Showering, Dressing and Continence Care at Home
Older Australians will no longer have to pay co-payments for showering, dressing and continence care under Support at Home once the new rules begin in October 2026. This change will make essential personal care at home more affordable and free up more funding for other supports.
Guide To Aged Care Home Modifications & The AT-HM Scheme
The Assistive Technology and Home Modifications (AT-HM) scheme provides upfront, separate funding under the Support at Home program. Discover who is eligible, what equipment is covered and how to apply for Aged Care home modifications.
Granny Flat Arrangements: How They Affect Your Pension & Aged Care Fees
Moving into a granny flat with family is a major financial shift that can significantly impact your Age Pension and aged care fees. Learn how Centrelink assesses granny flat interests, how it affects your aged care eligibility, and why formal agreements protect everyone