Aged care and superannuation - what are your choices?
2025 | 5min read
Thinking about aged care - whether for yourself, a parent, or a loved one - can feel like a big step. But knowing your options can make things clearer and easier to plan for
In this article we discuss the following:
- In-home care
- Temporary care
- Residential care
- Retirement villages
Who pays for aged care?
Fortunately, the Australian Government subsidises many aged care services for eligible older Australians. But you’ll likely need to use your super, savings or other income to chip in too. How much will depend on:
- Your finances
- The type of care you choose
- Where the care is provided.
Government funding comes through either the Commonwealth Home Support Programme (CHSP) or a Home Care Package (HCP). To get started, you’ll need an assessment via My Aged Care. We share more information below, or you can head to My Aged Care for all the details.
In-home care
If staying in your own home as long as possible sounds good, you’re not alone - most people feel the same. Luckily, there’s help available, whether that’s from family and friends or through government-supported private, community and charitable services.
If you’re largely indepedent
If you’re largely independent but need assistance with daily living, the Commonwealth Home Support Programme (CHSP) might be for you. You can get basic support to make life easier, like:
- Assistance with housekeeping (including cleaning and laundry)
- Home maintenance
- Personal care (like help with bathing and dressing)
- Meals (help with cooking, delivered meals or centre based meals)
- Social support (including help with banking and transport)
- Health services (like nursing, physiotherapy and podiatry).
If you have more complex needs
For more complex needs, there’s the Home Care Package (HCP). These packages are tailored to you and cover personal care, support services, and clinical care. There are four levels of packages, so you can get the right amount of coordinated help for your situation.
Both CHSP and HCP are heavily subsidised, but you’ll still need to pay a basic daily fee plus an income-based contribution (which is capped annually and over your lifetime).
To access in-home care, you’ll need to be assessed by an Aged Care Assessment Team (ACAT, or ACAS in Victoria). Once you’re approved, a care manager will help you put everything in place.
Did you know?
The Aged Care Assessment Team (ACAT, or ACAS in Victoria) is usually made up of one or two health professionals. They’ll meet with you to chat about your health, physical abilities, and what kind of support you might need. After the assessment, they’ll let you know in writing whether you’ve been approved for care.
Ready to book an assessment? Head over to My Aged Care and get started.
Temporary care
Sometimes you only need short-term care - like after an illness or when a regular carer takes a well-deserved break. That’s where respite care comes in.
Respite care is available in residential aged care facilities and is subsidised by the government. You’ll still need an ACAT/ACAS assessment, and once that’s sorted, you can book a place with a local provider. You’ll pay a small daily fee for the service.
Residential aged care
When living at home isn’t an option anymore and you simply need more care, residential aged care can provide the support you need. It’s a big step, but these facilities are designed to help you live as comfortably as possible. Most aged care services are regulated by the government and must comply with required standards. Staff must be appropriately trained, and a minimum range of services must be provided to all residents.
Costs are based on your income and assets, and you’ll need an ACAT/ACAS assessment to get started. You might need to pay for accommodation, care and living support, but the government usually subsidises some of it. Some facilities even offer extras—like hairdressing or wine with dinner—for an additional packaged fee.
Since every aged care home is different when it comes to quality, amenities and programs, it’s worth taking the time to find one that is right for you.
What’s included?
Scroll table horizontally on mobile
| Staff on-call 24/7 to help at all times | Meals |
| Assistance with daily living activities including bathing, dressing, eating and medication management |
Cleaning and laundry services |
| Social activities | Nursing care and other health services. |
Retirement villages
If you’re over 55 and looking for a lifestyle change, a retirement village might be just the thing. These communities are great for people who want to live independently but like the idea of extra security and companionship.
Villages vary a lot, from cosy setups to large complexes with tennis courts, pools, and restaurants. Accommodation options range from units and villas to houses, and some even offer assisted living services for an extra fee. Residents generally don’t own their dwelling, but in most cases, pay for the right to live in the village through a lease or licence arrangement.
Unlike other aged care options, retirement villages aren’t government-subsidised, so you’ll generally need to budget for:
- An entry contribution
- Ongoing service fees
- Exit fees.
The amounts can vary greatly so it’s worth having a lawyer review the contracts carefully before you commit. The good news? You can still access subsidised home care services if you need them.
When it comes to aged care, understanding your options and planning ahead is key. It’s not a one-size-fits-all decision—what’s right for someone else might not be right for you. So if you’re getting ready to retire, you don’t have to go it alone.
If you’re navigating these important decisions and next steps, an Aware Super financial adviser can provide you with tailored, specialist help on Aged Care. Book a free initial appointment today.
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