With the introduction of the new Aged Care Act, aged care fees are set to increase from 1 July, bringing changes to both accommodation and care contributions.
However, there is some good news—the Maximum Permissible Interest Rate (MPIR) is decreasing. For residents entering care between 1 April 2025 and 30 June 2025, the MPIR will be 8.17%.
This rate applies to those moving into residential care or transferring to a new provider during this period, as well as clients not assessed as low-means who voluntarily move rooms. Existing low-means clients will only have the MPIR applied if they move to a new provider.
Why Seeking Specialist Aged Care Advice is Crucial
While the MPIR decrease may provide some relief, the rising costs of aged care make it more important than ever to seek specialist aged care advice. Navigating accommodation payments, care fees, and financial structuring can be complex, and getting the right guidance can make a significant difference to long-term affordability.
Choosing between Refundable Accommodation Deposits (RAD) and Daily Accommodation Payments (DAP) requires careful financial consideration, and aged care specialists can help families determine the best funding strategy.
Beyond accommodation and care fees, the reforms also have implications for financial and estate planning. Changes to refunding of RADS and means testing may impact how families plan for aged care and manage intergenerational wealth. Understanding these changes early and structuring assets effectively can help minimise unexpected costs and maximise financial security.
Get Expert Guidance Before 30 June 2025
Aged care is complicated and emotionally challenging, but you don’t have to navigate it alone. Seeking advice from an Aged Care Specialist ensures that you or your loved one can make informed, strategic decisions while securing the best financial outcome.
If you or someone you know is entering residential aged care, considering a room change, or moving to a new facility, I can provide tailored advice to help you explore the best options and plan effectively.
Call Sophie Doyle on 02 4325 0884
Email: [email protected]
Sophie Doyle (AR#000470612) is a Retirement and Aged Care Specialist at Morgans Financial Limited (Morgans AFSL 235410 / ABN49 010 669 726); with a passion for assisting people make informed financial decisions, as they navigate their way through retirement and aged care.
