Free help, paid advice and general information: knowing the difference

Families looking into aged care fees come across a mix of free services, paid advisers, the aged care home's own staff, and websites like this one. They each do a different job. Knowing which is which helps you decide where to go, and how much weight to give what you're told.

Three kinds of help

• General information explains how the rules work, using facts and examples. It doesn't look at your parent's situation or tell you what to do. Government websites and our guides are general information. Our calculator only uses the figures you enter, and it doesn't tell you which option to pick.
• General advice is a suggestion or opinion about a financial product, given without considering anyone's own situation.
• Personal advice takes your parent's goals, money and needs into account and says what would suit them. Only a licensed financial adviser can give personal financial advice.

Free help

• Services Australia's Financial Information Service. Free. Its officers explain how aged care fees, the means assessment and the pension work, and they run webinars. Help is available in other languages.
• My Aged Care. The government's contact centre and website for assessments, finding a home, and fee estimates. A free care finder can help vulnerable people who have no one else to support them to get care.
• The Older Persons Advocacy Network (OPAN). Free, independent advocates who help older people and families understand their rights, raise problems with providers and complain if needed.
• Moneysmart. The government's money guidance website has a section on aged care costs.

Paid advice from a specialist adviser

An adviser with aged care experience can look at the whole picture: how paying for the room affects the fees, the pension, tax and your parent's estate, and what happens to the home. They put their advice in writing.

Things to know:

• Check they're licensed. Every financial adviser should appear on ASIC's financial advisers register on Moneysmart.
• Ask about their aged care experience. Some advisers have done extra training in aged care. Ask what they've done and how many families they've helped.
• Ask about cost upfront. Advisers usually charge a fee for the advice, and costs vary a lot. Ask for the fee in writing before work starts, and ask whether they receive any other payments.
• Bring your paperwork. Fee advice letters, the home's room prices and the agreements make the advice quicker and better.

For legal matters, such as a power of attorney, a will, or a family member lending money for the room, you'll need a lawyer as well.

Can the aged care home tell you what to do?

The home's staff can explain their room prices, the payment options and their agreements, and they're usually happy to. But the home has its own interest in how the room is paid for, and its staff generally aren't licensed financial advisers. Treat what they say as information, and get independent help before deciding how to pay.

What Aged Care Costs is, and isn't

Our guides and calculator are general information. The calculator gives an estimate of the fees, with the home counted as it is today, and compares the ways of paying for the room. It shows your figures, based on the details you enter. It doesn't tell you which option to choose, and it isn't financial advice.

If you want advice on your parent's own situation, our report can be a useful starting point for a conversation with a licensed adviser.

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