For many Australians, the family home is more than just bricks and mortar — it’s security, memories, and legacy. So, when a loved one is moving into aged care, the big question families often face is, “how do I keep the family home and still pay for aged care?”
Thankfully, selling the home isn’t always the only option. With smart financial advice and careful planning, many families can preserve the home while still meeting the costs of aged care.
💡 Option 1: Keep the Home and Pay a DAP Instead of a RAD
A RAD (Refundable Accommodation Deposit) can often be hundreds of thousands of dollars. If you’d prefer not to sell the home to pay this upfront, you can opt to pay a DAP (Daily Accommodation Payment) instead. Here’s some options:
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Think of the DAP like rent — calculated daily on the unpaid RAD amount
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Interest is charged at the government-set MPIR (currently ~8%)
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You can even have the DAP deducted from other assets or cash reserves
👉 This option lets you retain ownership of the home, while still securing a place in aged care.
🧮 Option 2: Use a Combination Strategy (Part RAD / Part DAP)
If the home generates rental income, or you have access to other funds, a hybrid strategy may work best.
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Pay a portion of the RAD to reduce DAP interest
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Use other income or assets to manage the rest
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This strategy can protect long-term equity in the home
We regularly model these options for families to help choose what’s most cost-effective and emotionally sustainable.
👵 What If a Spouse or Dependant Still Lives at Home?
If the former home is occupied by a protected person — like a spouse, child with a disability, or carer — it may be exempt from the means test for a period (or indefinitely).
✔️ This means the home won’t be counted as an assessable asset by Centrelink or the aged care means test
✔️ Pension and aged care costs can be significantly reduced
💼 Option 3: Consider Renting the Property
If no protected person remains in the home, renting it out may help fund aged care costs without selling:
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Income can help cover DAPs, daily care fees or means-tested fees
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Be mindful: rental income is counted in aged care means testing
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Get advice on tax implications and structuring income effectively
This can also help maintain eligibility for the Age Pension, depending on how income and assets are assessed.
🔐 Option 4: Use Other Financial Assets First
Rather than liquidating the family home, it may be smarter to use cash, superannuation, or investments to pay aged care costs first.
💬 This approach can:
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Preserve the home for future inheritance
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Offer flexibility if the family later decides to sell or downsize
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Minimise stress and decision-making during a time of emotional upheaval
❗ Don’t Act Without Advice
Making decisions about the family home and aged care without expert financial guidance can lead to costly mistakes.
At Trusted Aged Care Services, we specialise in:
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Protecting the family home where possible
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Navigating RAD/DAP decisions
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Maximising Centrelink entitlements
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Developing aged care strategies that respect family values and financial goals
✅ You Can Keep the Home — With the Right Strategy
Every family’s situation is different. Whether your goal is to protect inheritance, keep the home in the family, or reduce stress, we’re here to help.
📞 Contact Trusted Aged Care Services today for a confidential, obligation-free conversation about the best way forward.