The family home and entering aged care

ONE common misunderstanding is that people must sell their home to pay for aged care.

In reality, if there are enough savings or other assets available, aged care costs may be able to be paid without selling the home.

But if access to capital is limited, selling the property may be the most practical option.

A full financial review is warranted before making such an important decision.

This leads to a secondary question: how is the family home assessed when determining your aged care fees?

If the value of the home exceeds the home exemption cap, it will only be assessed at the capped amount, regardless of its true market value.

As at 20 March 2026, this cap is $214,884 and is indexed quarterly in line with CPI.

This cap applies to each member of a couple entering care.

Where the home is worth less than the cap, its actual value is used in the aged care assessment.

In some instances, the home may be fully exempt.

This happens when a ‘protected person’ continues to live in the property at the time the care recipient moves into permanent aged care.

Protected persons include:

* A spouse

* A dependent child

* A carer who has lived in the home for at least two years and receives an eligible Centrelink or DVA payment

* A close relative who has lived in the home for at least five years and receives an eligible payment

If the protected person leaves the home or ceases to receive an eligible means tested payment (such as an age pension), the property may no longer be exempt and may be reassessed.

Any decision regarding aged care will have financial implications.

Speaking with a qualified aged care specialist can help you understand your options and work out how to fund the move into permanent care.

Next month, Muirfield will be hosting an Aged Care Expo, bringing together a variety of providers in the aged care sector.

This includes representatives from Services Australia, Department of Health, the City of Greater Geelong, lawyers, home care providers, permanent care facilities, funeral homes and many other health and professional services.

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