Specialist aged care advice

When you or someone you love needs care, the complex rules and paperwork shouldn’t be the hardest part.

Aged care advice

Planning for the later years with clarity and compassion.

Living longer is a gift, but it often comes with significant financial questions. One of the biggest challenges families face is funding aged care while protecting the family estate. The system is complex, and for those entering care on or after 1 November 2025, the rules have fundamentally changed.

At Sunlit Path, we act as your ‘Project Manager’ during this emotional time, providing the clear, technical modelling you need to make the best decision for your loved ones.

Navigating the 2025/2026 reforms

The government has introduced a “user-pays” system for those with significant income or assets. We help you understand the new fee structure:

Basic Daily Fee: This remains at 85% of the single Age Pension and covers your everyday living costs like meals and laundry.
Hotelling Supplement Contribution: A means-tested fee for everyday living services (like catering and cleaning), capped at a daily rate (e.g., $22.15 in early 2026).

Non-Clinical Care Contribution: This replaces the old “means-tested care fee” for services like bathing and mobility assistance. It is capped daily and has a lifetime cap of approximately $135,319 (or 4 years in care).

Accommodation strategies: RAD vs. DAP

How you pay for your room is one of the most critical decisions you will make.

- The 2% Retention Rule: Since November 2025, providers now retain 2% of your Refundable Accommodation Deposit (RAD) per year for a maximum of 5 years. This means a $750,000 RAD will now erode by up to $75,000 (10%) over five years.
- Indexed DAP: If you choose a Daily Accommodation Payment (DAP) instead of a lump sum, that payment is now indexed twice a year, which can lead to rising costs over time.
- DAP from RAD: We often model a “Combination Payment” where your daily fees are deducted from your lump sum deposit, preserving your liquid cash for personal needs.

The family home: keep, sell, or rent?

Deciding what to do with the family home is both emotional and financially high-stakes.

Exemption Rules: If a “protected person” (like a spouse) stays in the home, it remains an exempt asset. If it is empty, its value for means-testing is capped at approximately $206,039 for the first two years.
Rent vs. Sell Modeling: We model whether renting the home to fund care fees or selling it to pay a RAD makes the most sense for your family’s specific pension and tax situation.

Grandfathering and the "28-day rule"

If you were already in care before 1 November 2025, you are protected by the “No Worse Off” principle and generally stay on the old rules. However, if you move facilities and are out of care for more than 28 days, you will trigger the new, often more expensive, fee regime. We manage these timelines strictly to preserve your estate’s value.