Do I have to sell my home to enter aged care?
One of the most common and emotionally charged questions people ask when transitioning to residential aged care is: ‘Do I have to sell my family home?’
The short answer is ‘no’ — but understanding the financial implications is essential.
![<p>This article unpacks the question on everyone’s mind when they first consider aged care. [Source: iStock]</p>](https://agedcareguide-assets.imgix.net/news/articles/wp/familyhome__2204.jpg?fm=pjpg&format=auto&w=550&q=65)
This article unpacks the question on everyone’s mind when they first consider aged care. [Source: iStock]
While many families choose to sell the home to help pay for aged care costs, it’s not compulsory. In fact, there are situations where holding onto the home may benefit both the resident and their family — emotionally and financially.
When is the family home excluded from aged care means testing?
The Australian Government considers the value of your assets and income to calculate your aged care fees. However, the value of your home is exempt from the assets test if certain protected persons are living in it. These include:
- a partner or spouse;
- a dependent child;
- a carer who has lived in the home for at least two years and is eligible for an income support payment;
- a close relative who has lived in the home for at least five years and also receives an income support payment.
If one of these protected persons continues living in your home, its value will not be counted when determining your means-tested care fee or your eligibility for government support.
What if no protected person lives in the home?
If the home is not occupied by a protected person, it is still not counted in full. Instead, a capped value is used in the means test — currently set at $206,663.20 as of March 2025. This figure is indexed and updated periodically by the Department of Health and Aged Care.
It’s important to note that aged care costs include more than just accommodation.
Depending on your financial situation, you may need to contribute:
- a basic daily care fee (set at 85 percent of the single Age Pension);
- a means-tested care fee (based on your assets and income);
- an accommodation payment (refundable deposit, daily payment or combination);
- an additional service fees (for hotel-style extras or higher-end services); or
- an extra service fee for rooms or facilities that are deemed to be above and beyond what would normally be a part of aged care.
What are your options?
Selling the home is just one option; others include:
- renting it out to generate income (note: this may affect means testing);
- retaining it for family use or future inheritance; and
- using other assets to fund care costs
Because aged care finances are complex and every situation is different, it’s strongly recommended to seek advice from an accredited aged care financial advisor. A good advisor can help you compare options, understand tax or Centrelink implications and make decisions aligned with your goals.
Where to find help
For more information and to compare aged care costs, services, and providers, visit AgedCareGuide.com.au — Australia’s most comprehensive directory for aged care. The site offers tools, articles and resources to help you make informed decisions, including a cost comparison calculator and advice from aged care experts.
These fees and guidelines may be subject to change with the introduction of the New Aged Care Act and the Support at Home Program. To stay up to date with information, news and industry updates, subscribe to the Talking Aged Care newsletter.
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