Frequently asked questions

Aged care FAQs

Find out what other people have asked about this often complex and emotional area.

What do I need to do?

First, you should find out if there is an accommodation payment payable and determine what assets you can use to meet the cost.

How an adviser can help

Your adviser can help you determine how to pay for your accommodation. This may involve a lump sum payment, regular instalments or a combination of both.

Who else can help?

The Department of Human Services (Centrelink) assesses your income and assets. Also, the My Aged Care website has been established by the Australian Government to help you navigate the aged care system

What do I need to do?

Determine which ongoing fees apply to you. This could include the basic daily fee, a means-tested care fee and any extra service fee.

How an adviser can help

There are strategies to minimise the fees you pay. Keeping or selling your home often forms part of the strategy as does how you invest. A poorly executed plan can result in a lower Age Pension and higher fees.

Who else can help?

The aged care facility and Centrelink can assist in determining your fees.

What do I need to do?

Understand the various options and strategies available to you regarding your primary residence before making any decisions.

Your adviser can help

Your adviser can explain what to consider if you are thinking of keeping or selling the family home. If kept, they can discuss strategies to pay the agreed accommodation costs and explain how the family home will be treated for social security and aged care purposes. If sold, they can also help identify the best way to invest the proceeds and get the balance right between generating an income, maximising Age Pension and minimising aged care fees. It is important to discuss your options with a financial adviser prior to making any major decisions so that all strategies can be reviewed and assessed.

What do I need to do?

Determine how the social security Income and Asset tests apply to you.

How an adviser can help

Your choice of investments may help you to access or retain benefits, including the Commonwealth Seniors Health Card. The decisions you make regarding keeping or selling your family home can also result in a lower Age Pension.

Who else can help?

Centrelink determines your eligibility for Government benefits.

What do I need to do?

Determine if your capital can be invested to provide enough cash flow to meet ongoing care costs.

How an adviser can help

Your financial adviser can assess your investment options and help you maximise your income.


What do I need to do?

Identify which of your assets can be included in your estate and the best way to do so.

How an adviser can help

Your financial adviser can help identify what assets can be left to your estate.

Who else can help

Your lawyer can ensure you have a Will that reflects your wishes.

What do I need to do?

Identify what tax offsets are available and which apply to you. You also need to be aware of any issues that may arise if you sell your home or change your investments.

Your adviser can help

An overall review of your situation will identify the various tax offsets that may be available to you, including the low income, seniors and net medical expense offsets.

A tax adviser can also flag issues concerning land tax and capital gains tax that may affect you.

Important information

Information provided on the Challenger Websites is intended for Australian residents only and may not comply with the laws of other jurisdictions outside Australia. It is of a general nature and does not take into account an investor's individual circumstances, financial situation or needs or particular investment objectives. It is not intended to be investment advice nor a recommendation or statement of opinion about any particular financial product or class of financial products. As a result, it should not be relied upon in acquiring any financial product or service and is provided in good faith and derived from sources believed to be accurate and current at the date of publication. See Conditions of use for more information.