Emma: What do you suggest people do first if they find themselves suddenly needing to support an elderly parent or relative?

Bina: Firstly, identify the sort of help they need so you can work out the best way to get that assistance. Is it help around the house, meals, transport to appointments, shopping, or do they need full-time care? Can friends or family assist or do they require qualified carers? MyAgedCare is the gateway to government-funded aged care services. You need to register to arrange a needs assessment, which will determine what support they can receive. Referrals can be made over the phone or online.

Emma: What are the care options for people who want to stay in their own home, and how do you know which is the right fit?

Bina: The government offers subsidised help through its entry-level Commonwealth Home Support Program and its more coordinated Support at Home program. These programs give access to support services and equipment and clinical care through approved providers.

Your pathway will depend on the areas of help you have identified, the level of outside support from friends and family, the level of support you are assessed as needing, and your own available resources to ‘buy-in’ extra help. You can find and pay for your own support workers privately, which may help with quality and consistency.

Emma: What are the most important considerations for choosing residential care?

Bina: It’s important to understand what the costs are likely to be and the options to pay, but don’t always choose based on cost.

The cost of residential aged care will depend on your income and assets, and there are several ways to pay for it, so work on finding the most suitable place – after all, you or your loved one need to be happy living there.

If you can arrange to visit a few places, then this may remove a lot of the mystery and fear associated with aged care.

Emma: What are the benefits of seeking advice from an aged care specialist?

Bina: You don’t know what you don’t know, so it’s always good to bring in a specialist as early as possible in the process. It could save time and money but also remove some of the stress at a very emotional time.

Emma:  What are the main costs involved in accessing aged care?

Bina: With home care, you contribute to most services based on your income.

Residential aged care is income and asset tested, and every aged care facility can set its own room price.

There are four potential costs: Accommodation (the Refundable Accommodation Deposit or Daily Accommodation Payment); Essential living expenses (a basic daily fee or hotelling contribution); care costs (means-tested care fees or non-clinical care contributions); and an additional service fee or higher everyday living fee.

Emma: What are the options for paying for aged care?

Bina: You can pay some costs as a lump sum. Some people sell or rent the family home or investment properties, or use easily accessible cash or investments, or money from superannuation.

How to pay for a room in aged care and the best way to structure your finances will depend on factors including whether the person going into care owns their own home, and their level of assessable assets and income.

Emma: How can superannuation be used to help cover aged care costs, and what should retirees or their families keep in mind when considering this option?

Bina: Using superannuation to pay for aged care costs will depend on how it will affect estate planning, tax on death benefits, and the government Age Pension.

Paying a lump sum refundable accommodation deposit (RAD) from super may be an option to reduce the daily accommodation payment and potentially some of the ongoing fees. However, once the RAD is returned to the estate, it generally can’t go back into the super environment. Another option may be to increase the income being drawn from the super account to cover the expenses, without fully withdrawing from the investments in super.

Emma: If you could give one piece of advice to someone beginning this journey with a parent or for themselves, what would it be?

Bina: Do your research or get advice. Your situation will be unique to that of neighbours and friends.

Emma: There are major aged care reforms starting on 1 November 2025 under the new Aged Care Act. What should families and retirees know about these changes?

Bina: The amount that you and the government contribute towards aged care services and how these amounts are calculated has changed. If you have the means, you can expect to pay more.

The new Act also aims to improve how services are delivered to older people in their home and in aged care.