Planning for aged care is often overwhelming, with a myriad of information and fees to navigate. At Rasiah Private Wealth Management, we frequently encounter the same questions and concerns from clients who are working through this process. There’s a lot of confusion about what costs are involved, how fees are structured, and how to prepare financially. To make things clearer, we’re breaking down three common misconceptions about aged care fees that can help you feel more confident in your planning. 

Myth 1: Once the Accommodation Bond Is Paid, You Won’t Get It Back 

A widespread belief is that the accommodation bond paid to an aged care facility is a non-refundable entry fee. Fortunately, this is not the case. The accommodation bond operates more like an interest-free loan. When a resident leaves the facility, the bond is returned to them, or it is passed on to their estate after they pass away. 

Additionally, if the facility is government-regulated, the bond is guaranteed by the government. This ensures the funds are used for the maintenance and improvement of the facility rather than disappearing. 

Myth 2: The Ongoing Fees Are Unmanageable 

Aged care fees can seem daunting at first glance. The fees can include the basic daily fee, income-tested fee, and possibly additional charges for higher levels of care. However, these costs begin to make more sense when you consider what they cover—accommodation, meals, organised activities, and round-the-clock care from trained professionals. 

Myth 3: You Can’t Reduce Ongoing Fees 

Another misconception is that once fees are set, they’re fixed for good. The truth is, there are smart financial strategies to help reduce ongoing costs. For instance, the income-tested fee is based on the resident’s income, which is determined by Centrelink’s income test. By optimising your financial situation—whether through restructuring assets or taking advantage of government allowances—it’s possible to reduce the income-tested fee. 

This is why having the right financial advice is key. With proper planning, you can create a strategy that ensures your loved one receives the care they need without the stress of overburdening fees. 

Final Thoughts: Aged Care Planning Needs Expert Guidance 

Navigating the aged care system can feel like an endless maze, but you don’t have to do it alone. At Rasiah Private Wealth Management, we’re here to help guide you through the complexities, ensuring that your loved one receives the care they deserve without unnecessary financial strain. 

If you have questions about aged care fees or want to explore strategies to reduce costs, we’re always available to help. Let us work with you to create a plan that aligns with your financial goals and provides peace of mind for you and your family.