Aged Care Planning for Couples in Australia

Planning for aged care is rarely straightforward, and when you are part of a couple, the decisions become even more layered. Who needs care first? What happens to the partner who stays at home? How are shared assets treated, and how do costs get calculated when one of you enters residential care? These are questions that many Australian couples face without much warning, which is why aged care planning for couples deserves thoughtful attention well before a health crisis forces the issue.

At MiQ Private, we work with many clients who are navigating these conversations for the first time, often prompted by a parent’s situation or a health event of their own. We have found that those who engage with aged care planning early are far better positioned, both financially and emotionally, than those who leave it until circumstances demand urgent decisions.

This article walks you through the key considerations for Australian couples thinking about aged care, including how costs are assessed, what protections exist for the partner who remains at home, and how to approach this planning as part of your broader financial strategy.

Why Aged Care Planning Matters for Couples

For couples, aged care introduces a unique set of financial and practical complexities that simply do not apply to single individuals. When one partner needs care, decisions made about how to fund that care can affect the financial position of both partners, sometimes significantly.

The Australian aged care system involves ‘means assessments’ that consider both income and assets. For couples, these assessments generally attribute half of the combined income and assets to each partner. This means the financial resources of both people can influence what one person pays for their care, even if only one of them is receiving it.

Understanding how this works, and planning around it proactively, can make a substantial difference to the financial outcomes for both partners and for the family as a whole.

How the Australian Aged Care System Works

Australia’s aged care system is overseen by the federal government and operates through My Aged Care, the central access point for aged care services. To access government-subsidised care, individuals are assessed by the Aged Care Assessment Team (ACAT) or the Regional Assessment Service (RAS), depending on the level of care they need.

There are two main types of government-funded aged care relevant to couples. Support at Home allows people to receive care services while remaining in their own home, offering flexibility and the ability for couples to stay together for longer. Residential aged care involves moving into a facility and provides a higher level of ongoing support for those with more complex needs.

From 1 July 2025, the Support at Home program replaced the previous Home Care Packages model. This updated program offers a more flexible, needs-based approach to funding home care services, which can be a meaningful option for couples who want to maintain their lifestyle and independence for as long as possible.

The Means Assessment: How Couples Are Assessed

One of the most important things for couples to understand is how the means assessment works when one partner enters residential aged care. Services Australia conducts this assessment to determine how much the government contributes to care costs and how much the individual is expected to contribute.

For couples, half of the combined income and assets is attributed to each partner for the purpose of the assessment, regardless of whose name the assets are held in or who earned the income. This covers cash savings, investments, and in some circumstances, superannuation balances.

The family home receives important special treatment. If the partner who remains in the community continues to live in the home, Services Australia considers the home occupied by a “protected person.” This means the family home is not included as an assessable asset in the means assessment of the partner who has entered care. This protection can be highly significant, as the family home is often the most substantial asset a couple holds.

Accommodation Costs in Residential Care

If one partner moves into a residential aged care facility, accommodation costs may apply. These can be paid as a lump sum (known as a Refundable Accommodation Deposit, or RAD), as a Daily Accommodation Payment (DAP), or a combination of both. The RAD is refundable when the resident leaves care or passes away.

Whether accommodation costs apply, and how much, depends on the means assessment outcome. As at March 2026, if income falls below $35,313.20 and assets below $64,500, the government may contribute to accommodation costs.

For couples, the decision about how to fund a RAD is particularly important. Paying a large lump sum from shared savings or by liquidating investments could affect the financial position of the at-home partner. This decision is worth careful consideration and professional advice before any commitments are made.

Ongoing Care Fees and Annual Caps

Beyond accommodation, ongoing fees in residential aged care typically include a basic daily fee, a means-tested care fee for those with greater financial capacity, and additional service fees for optional extras. The basic daily fee is a standard contribution paid by most residents.

The means-tested care fee is subject to both annual and lifetime caps, which provide an important protection against open-ended financial exposure. As at March 2026, the annual cap is $35,910.43 and the lifetime cap is $86,185.23. Once these caps are reached, no further means-tested care fee applies.

From October 2026, the Australian Government announced that personal care services would be fully funded by the government, meaning eligible residents can access personal care at no out-of-pocket cost. This represents a meaningful step forward in the affordability of residential aged care for many Australian families.

Illness-Separated Couples and the Age Pension

When one partner enters an aged care facility, Centrelink may classify the couple as “illness-separated.” This classification still treats the couple as partnered for the purposes of the combined income and assets assessment, but each person receives the single rate of Age Pension rather than the lower partnered rate.

The single rate of Age Pension is higher than the partnered rate, which can provide some additional income to each partner during the period of separation. This is often a welcome offset against the additional costs that aged care can bring.

Understanding when this classification applies, and how to notify Centrelink, is worth discussing with your financial adviser to make sure you are not missing entitlements you are eligible for.

Keeping Couples Together: The Role of Home Care

Many couples are understandably reluctant to consider residential care, particularly when one partner’s needs can still be met at home with the right support. The Support at Home program can help couples access professional care services in their own home, including personal care, nursing, allied health services such as physiotherapy, domestic assistance, and transport.

Accessing home care services early, before needs become acute, can support both the person who needs care and the partner who shares that caring role. It can also delay or prevent the need for residential care by keeping the care recipient safer and more comfortable at home for longer.

For couples where care needs vary significantly between partners, a combination of home-based care and residential options may need to be considered over time. Some couples also explore purpose-built retirement villages and serviced apartments that offer a graduated level of support as needs evolve.

Financial and Legal Steps to Take Now

Effective aged care planning for couples involves more than understanding fee structures. There are practical financial and legal steps worth taking well before care is needed.

Enduring powers of attorney and advance care directives are foundational. An enduring power of attorney authorises a trusted person to make financial decisions on behalf of someone who can no longer do so themselves. An advance care directive (or enduring guardianship, depending on the state) sets out healthcare preferences. Without these documents in place, families can face significant delays and complications if a partner loses capacity unexpectedly.

Reviewing how assets are structured and titled is also worth attention. In some cases, the way assets are held can affect means assessment outcomes. Similarly, considering the role of superannuation, the timing of withdrawals, and how any lump sum accommodation payments are funded may all be relevant depending on your individual circumstances. These are all areas where professional advice can make a genuine difference.

How MiQ Private Can Help

Aged care planning for couples requires a careful and personalised approach. At MiQ Private, we take the time to understand each client’s family situation, financial position, and goals before exploring what aged care might look like and how to plan for it.

We can help you understand how the means assessment process works for couples, model the potential costs of different care scenarios, and consider how aged care planning fits within your broader retirement and estate planning. We also coordinate with solicitors and accountants where needed to make sure all aspects of your planning are properly aligned.

We have found that couples who plan ahead approach the aged care journey with far greater confidence and clarity, knowing that the decisions they make today protect both partners, not just the one who needs care first.

Start the Conversation Now

Aged care is a topic that many couples prefer not to think about until it becomes necessary. But the decisions made when care is urgently needed are rarely the most considered ones, and the financial consequences can be lasting.

If you and your partner would like to understand how aged care planning fits into your financial plan, we would be glad to have that conversation. Get in touch with the MiQ Private team to arrange a time to talk.