Understanding jointly owned property and aged care fees

How does a jointly owned property affect aged care fees?

Julie contacted us because her mother needed to enter residential aged care. They jointly own a property and recently found out there’s no exemption in their situation—so the property will be treated as an asset for her mum’s aged care fees. This means that, regardless of her mum’s other assets, the property’s value alone may result in her being assessed as able to pay for accommodation costs, on top of other care fees. They’re now worried that selling the property may be their only option.

Before explaining how we helped Julie and her mum, let’s take a step back to understand how the family home is assessed and what this means for aged care costs. The way a property is assessed depends on who lives there and whether they receive a government income support payment. For aged care fees, the property will either be exempt or assessed at a capped value (currently $206,663 until 19 September 2025).

It’s also important to note that if a property is initially exempt, this can later change—resulting in increased aged care fees. This can be a significant cost increase, especially if the government has subsidised accommodation costs because the resident was originally classified as ‘low means’ (also called ‘supported’ or ‘concessional’).

The main scenarios

Spouse in the house

While a spouse remains living at home, the property is exempt from both aged care and pension assessments. This can reduce overall costs and may help the resident qualify for government support with accommodation costs. However, if the spouse later leaves the property, the exemption ends, and the home becomes assessable for aged care fees at the next fee review. For the pension, the property will become assessable at market value after two years.

There is a ‘protected person’

For residents who do not have a spouse living at home, the home can still be exempt if a protected person lives there. This includes:

• a carer (living in the home for 2+ years and receiving an income support payment), or
• a close relative (living in the home for 5+ years and receiving an income support payment).

Note: Carer Allowance does not qualify as income support. Income support includes JobSeeker, Age Pension, Carer Payment, or Disability Support Pension.

No protected person

If no exemption applies—such as in Julie’s case, where she lives with her mum but doesn’t receive an income support payment—the property is assessed at the capped value. This results in no eligibility for government support with accommodation costs, and the resident must pay accommodation fees at the market rate.

When the ‘obvious’ decision isn’t the best one

Julie and her mother were worried they’d need to sell the home to fund care. But even though the property is counted as an asset, it doesn’t have to be sold. Whether Julie lives in the property or not, it’s not reasonable to expect another owner to sell.

The good news is that there’s a safety net called financial hardship assistance to help with aged care fees. Julie’s mother won’t need to sell the property, but she will be expected to use her other assets to help pay for her care. Once her savings and other assets fall below the threshold for financial support, they can apply for hardship assistance to help cover ongoing aged care fees.

It’s important to understand the eligibility rules and timing of this claim.

We are here to help, every step of the way

Aged care finances are complex, and the rules around property and the family home can feel overwhelming. Our Alteris Lifestyle and Care team helps you understand your options and how they apply to your family. We guide you through the aged care system—including Centrelink and DVA—and support you in making clear, informed decisions for both the immediate and long term. Learn more about our accredited aged care financial advisers.

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