This case shows why you should always seek financial advice when planning for aged care costs

When it comes to aged care planning, it's not only the emotional toll that families have to confront but also a maze of financial complexities.  

In a recent case, a family found this out the hard way. 

The Scenario

Two siblings were helping their parents navigate the complexities of aged care. Their mother had been diagnosed with dementia and needed to transition into an aged care facility, while the father would continue living in the family home.  

The son, a successful businessman, consulted his accountant about asset protection and, acting on this advice, transferred the family home into a trust. He thought he was securing the family's financial future. Instead, he stumbled into a financial disaster.  

The Mistakes                                          

Transferring the home triggered a reassessment of assets, leading to a loss of Age Pensions for both parents.

The house transfer inflated the assessable assets, leading to an increase in Means-Tested Care Fees (MTCF).  

The transfer also meant the family had to pay an additional Daily Accommodation Payment (DAP), based on an MPIR of 7.9%.

The Costs  

Loss of Age Pension: The Pension was $1,096 per person per fortnight. Annually for both, that comes to $56,992, and over five years, it amounts to $284,960.  

Additional DAP: The RAD was $550,000. Using an MPIR of 7.9%, the extra DAP would be 550,000 times 0.079/365 = $108.90 per day. Over a year, that’s $39,749.50, and over five years, it's $198,747.50.  

Means-Tested Care Fee (MTCF): The MTCF would depend on the parents’ income and assets. Given that their assets would have been inflated due to the inclusion of the house, this would have increased. However, exact calculations would require additional information on income and assets.  

Legal and Stamp Duty: The house transfer cost about $80,000 in legal fees and stamp duty.  

In total, the family was looking at immediate costs of $630,000 ($550,000 for the RAD and $80,000 for legal and stamp duty).  

The ongoing additional DAP costs over five years would be $198,747.50, and the loss in Pension over the same period would be $284,960. This doesn’t even account for the Means-Tested Care Fees, which would add to the total.  

The Conclusion 

“In the absence of specialised aged care financial advice, the family’s actions led them down a financially perilous path. The son’s business acumen and the accountant’s general advice fell short when it came to the specific, complex rules governing aged care and Centrelink,” said Shaun Ganguly of Aged Care Financial Planning. 

“Navigating the aged care system is not just about understanding the emotional and physical needs but also about understanding the intricate financial landscape. This family learned the hard way that one wrong financial move could result in hundreds of thousands of dollars in avoidable costs.”


At Aged Care Financial Planning, Shaun said all aspects are carefully considered, potentially saving families from expensive mistakes. A small upfront investment in specialised advice can prevent costly errors down the road.  

[email protected] – 1300 000 243 

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A special thanks to our contributors

Caroline Egan

DCM Media, agedcare101

Caroline has a wealth of experience writing within the retirement and aged care sector and is a contributing journalist for the and agedcare101 blog and accompanying newsletters.

Ian Horswill


Ian is a journalist, writer and sub-editor for the aged care sector, working at The DCM Group. He writes for The Weekly Source, agedcare101, and the DCM Institute fortnightly newsletter Friday. Ian is in daily contact with CEOs of retirement living, land lease and the aged care operations and makes a new contact every week. He investigates media releases, LinkedIn and Facebook for a good source for ideas for stories.

Lauren Broomham

Retirement and Aged Care Journalist

Lauren is a journalist for, agedcare101 and The Donaldson Sisters. Growing up in a big family in small town communities, she has always had a love for the written word, joining her local library at the age of six months. With over eight years' experience in writing and editing, she is a keen follower of news and current affairs with a nose for a good story.

Jill Donaldson


Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.