Why selling can change the fees so much
In the aged care means test, a home nobody else lives in is counted, but only up to $219,858. Once it's sold, the whole sale price becomes cash and is counted in full. Centrelink also deems that cash to earn income, which pushes up the income side of the test too.
For someone with modest savings, that can be the difference between the government paying for the room and paying the full room price plus the maximum hotelling and care contributions.
Keeping and renting the home
Rent counts as income in the aged care means test, after allowable expenses. Keeping the home and renting it can still work out well, because the home's value stays capped while the rent can cover the daily room payment. Rent and running costs vary a lot, so treat the result as a starting point.
The Age Pension is a separate test
This page compares aged care fees only. The Age Pension treats the home differently: it stays exempt for two years after moving into care, then counts in full unless a partner still lives there. Selling also affects the pension through the assets test and deeming. Check both before deciding.
Other things to consider
- Capital gains tax usually doesn't apply to a main residence, but rules apply if it's rented out for more than six years.
- Selling costs (agent, legal, repairs) typically take 2–4% of the price.
- Family wishes, the property market and whether anyone may move back in all matter as much as the numbers.
A financial adviser who specialises in aged care can model all of this together. For fees in other situations, use the aged care fees calculator.
Common questions
Does the family home count for aged care fees?
Only if no partner, dependent child or qualifying carer or relative lives there, and then only up to $219,858.
Do I have to sell the house to pay for aged care?
No. You can pay the room as a daily payment instead of a lump sum, and the home can be kept or rented. Some people pay the daily amount from rent.
Is the RAD from the house sale counted?
Yes, for aged care fees it's still an asset. It isn't counted for the Age Pension assets test, which is why paying a RAD from sale money can protect the pension.
Where these figures come from
- Department of Health, Disability and Ageing: Schedule of fees and charges for residential care
- Department of Health, Disability and Ageing: Residential aged care fee scenarios
- My Aged Care: Aged care home costs and fees
Last checked 5 October 2026. Results are estimates, not financial advice. For an official estimate call My Aged Care on 1800 200 422.