Age Pension & Centrelink

For most families, aged care isn’t something they think about until a health issue or unexpected event forces them to make decisions quickly.

Unfortunately, that’s often the worst time to start planning.

Over the years, I’ve helped many individuals and families throughout Geelong and the Greater Geelong region navigate the financial side of aged care. One thing I’ve learnt is that the earlier you understand your options, the more choices you’ll usually have.

Whether you’re planning for yourself or helping an ageing parent, knowing how the aged care system works can make the process far less stressful.

Staying at Home for Longer

Most Australians would prefer to remain in their own home for as long as possible.

Government-funded home care services can help make that possible by providing support with everyday tasks such as cleaning, shopping, meal preparation, personal care, transport, nursing and allied health services.

The level of support available depends on your individual circumstances and care needs.

The first step is usually registering with My Aged Care, where you’ll be assessed to determine the type of assistance you’re eligible to receive.

Because waiting periods can apply, it’s often worth beginning the process before care becomes urgently needed.

Understanding Home Care Costs

Many people are surprised to learn that government assistance doesn’t always mean care is completely free.

Depending on your financial circumstances, you may be asked to contribute towards the cost of your care.

Exactly how much you’ll pay depends on your income, assets, the type of care you receive and the provider you choose.

Understanding these costs early can help avoid unexpected surprises later.

When Residential Aged Care Becomes the Right Choice

Sometimes remaining at home simply isn’t practical or safe.

Residential aged care provides 24-hour support for people who require ongoing assistance with daily living or medical care.

Moving into residential care is a significant life decision—not only emotionally, but financially as well.

One of the biggest questions families ask is: “How are we going to pay for it?”

Understanding Aged Care Accommodation Costs

Residential aged care fees can be confusing because there are several different costs involved.

Depending on your circumstances, you may be required to pay a basic daily care fee, a means-tested care fee and accommodation costs.

Accommodation payments can often be made as a lump sum known as a Refundable Accommodation Deposit, as daily payments called a Daily Accommodation Payment, or as a combination of both.

Choosing the right option can have a significant impact on your cash flow, estate planning and ongoing retirement income.

Should You Sell the Family Home?

This is one of the biggest financial decisions many families ever face.

There isn’t a single answer that’s right for everyone.

Some people choose to sell their home and use part of the proceeds to pay a Refundable Accommodation Deposit.

Others prefer to keep the property and rent it out.

Each option has advantages and potential drawbacks.

Your decision can affect your Age Pension entitlement, Centrelink assessments, ongoing income, estate planning outcomes and the inheritance you leave your family.

These decisions are often difficult to reverse, so it’s important to understand the long-term implications before proceeding.

Don’t Forget the Age Pension Rules

Many people don’t realise that what happens to the family home can influence Age Pension eligibility.

Depending on whether you sell the property, rent it out or keep it vacant, different Centrelink asset and income assessment rules may apply.

Understanding these rules before making decisions can help avoid unintended consequences.

Short-Term Care Is Also Available

Not everyone entering the aged care system requires permanent residential care.

Government-funded support is also available for shorter periods, including recovery after a hospital stay, respite care to give family carers a break, and short-term restorative care designed to help people regain independence after illness or injury.

These services can often delay or even prevent the need for permanent residential care.

Why Financial Advice Matters

Aged care isn’t just about choosing the right facility.

It’s about coordinating your finances, superannuation, investments, Centrelink entitlements, tax position and estate planning so they continue to work together.

The right advice can help you understand how much aged care is likely to cost, whether selling the family home is appropriate, how to structure accommodation payments and the effect on your Age Pension.

Planning ahead often provides more flexibility and greater peace of mind for both you and your family.

Need Help Planning for Aged Care?

If you or a family member are beginning to think about aged care, now is the ideal time to understand your options.

As a financial adviser based in Newtown, I work with individuals and families throughout Geelong and the Greater Geelong region to help them navigate aged care funding, Centrelink, Age Pension entitlements, retirement planning and estate planning.

A little planning today can make difficult decisions much easier tomorrow.

If you receive the Age Pension—or expect to rely on it in the future—it’s important to stay up to date with changes that could affect your income.

From March 2026, the Australian Government increased the Age Pension while also making gradual changes to the deeming rates used to calculate pension entitlements.

For many people across Geelong and the surrounding region, these changes will have only a modest impact. However, they’re a timely reminder that even small adjustments to the rules can influence your retirement income.

The Age Pension Has Increased

The latest Age Pension increase is designed to help retirees manage the ongoing rise in everyday living costs.

Although the increase won’t completely offset higher prices for essentials such as groceries, electricity, insurance and healthcare, every additional dollar can make a difference for households living on a fixed income.

For many retirees, the Age Pension forms an important part of their overall retirement strategy alongside superannuation, investments and personal savings.

What Are Deeming Rates?

One of the most common questions I receive is, “What exactly are deeming rates?”

Deeming rates are simply the Government’s way of estimating the income your financial assets generate.

Rather than looking at the actual interest earned on every bank account or investment, Centrelink applies a deemed rate of return to eligible financial assets. That estimated income is then used when assessing your Age Pension entitlement.

It’s a system designed to simplify the assessment process, but it also means your pension may be affected even if your investments earn more—or less—than the deeming rate.

Why Have Deeming Rates Changed?

During recent years, deeming rates were kept artificially low while interest rates and financial markets experienced significant uncertainty.

From March 2026, the Government began gradually increasing those rates instead of making a large adjustment all at once.

The deeming rates introduced from 20 March 2026 were 1.25% on financial assets below the lower threshold and 3.25% on financial assets above that threshold.

Because the increases have been phased in, most retirees are less likely to experience sudden changes to their Age Pension payments.

Are You Getting the Best Return on Your Savings?

One issue that doesn’t receive enough attention is whether retirees are earning competitive interest on their cash savings.

Many Australians leave substantial amounts of money sitting in transaction accounts that pay very little interest.

Others simply prefer dealing with their local bank branch rather than managing online savings accounts.

There’s nothing wrong with wanting simplicity and security, but it’s worth reviewing your banking arrangements from time to time. A better interest rate may improve your overall financial position without taking on additional investment risk.

Age Pension Planning Is About More Than Centrelink

Many people think retirement planning is simply about qualifying for the Age Pension.

In reality, it’s about understanding how all the pieces fit together.

Your superannuation, investment income, bank savings, Centrelink entitlements and tax position all interact with one another.

A change to one area can sometimes create opportunities—or unintended consequences—in another.

That’s why personalised financial advice is often far more valuable than relying on general information published online.

Every Retirement Situation Is Different

I’ve worked with many people throughout Geelong and Greater Geelong who are surprised to discover they may be entitled to more support than they expected.

Others are already receiving the Age Pension but haven’t reviewed their financial arrangements for years.

Small adjustments to your retirement strategy can sometimes improve your cash flow, increase your confidence and help ensure you’re making the most of the entitlements available to you.

Need Help Understanding Your Age Pension?

If you’re approaching retirement or already receiving the Age Pension, it’s worth reviewing your position whenever Government rules change.

As a financial adviser based in Newtown, I help individuals and couples across Geelong and the Greater Geelong region understand how Age Pension rules, Centrelink, superannuation and retirement income strategies work together.

A simple review today may help you make more informed decisions about your retirement tomorrow.