Why Aged Care Advice Is More Crucial Than Ever: And How Advisers Make All the Difference

As Australia faces the biggest shake-up to its aged care system in nearly 30 years, more families than ever are grappling with increasingly complex choices and rising costs. While many think of aged care as an issue “for later,” the growing reality is that thoughtful, proactive aged care planning is essential, not just for clients themselves, but for their parents and loved ones.

The New Complexity: Why Good Advice is Essential

The latest reforms to aged care, starting 1 November 2025, bring sweeping changes:

• Many costs are going up for most Australians, not just the wealthy.

• The rules around means-testing, accommodation payments, and service contributions have changed.

• Government support will cover core clinical care but means-tested client contributions for “everyday” and “independence” services will affect most families.

• Market rates for accommodation (the Refundable Accommodation Deposit cap) will rise, and new exit fees apply, potentially shrinking inheritances.

  
  

It’s not just the wealthy who need careful planning. Case studies show that full pensioners and part-pensioners will also pay more, and those caught in the “middle asset” zone face real affordability pressures. Navigating these changes, identifying the eligibility for government supports, and structuring assets for the best outcome can be daunting without professional help.

How Advisers Add Value For Clients and Their Families

Early, strategic advice from a financial adviser is now a necessity, not a luxury and here’s why advisers are invaluable:

• Clarifying confusion: Advisers can demystify changing rules, cut through jargon, and offer tailored explanations for each family’s circumstance.

• Structuring assets: With new thresholds and penalties, advisers can help clients structure their finances, using strategies like gifting (within limit), prepaying funeral expenses, and annuities, to preserve eligibility and reduce unnecessary costs.

• Comprehensive planning: Good advice considers both the client and their family’s needs, helping adult children support elderly parents, set realistic expectations, and navigate sometimes difficult decisions together.

• Cashflow management: Advisers help families understand and budget for new ongoing fees, exit fees, and potential future increases.

• Peace of mind: Most importantly, advisers provide peace of mind, empowering clients to make confident, well-informed choices at a critical life stage.

  
  

The Bottom Line;  The most vital support many families will ever need is expert guidance about aged care, not just for themselves, but for their parents and loved ones. Financial advisers are uniquely positioned to lighten this load, advocate for their clients’ best interests, and navigate the complex new world of aged care with clarity and compassion.  Don’t wait. Proactive advice now can save your clients (and their families) from confusion, stress and unnecessary expense down the track.

Reach out to the Aged Care Gurus team or join this upcoming webinar to learn more. https://attendee.gotowebinar.com/register/1834249726862715477