Kerri Mendl, Managing Adviser Lifestyle and Care, was recently featured in a 7 News publication discussing the upcoming residential aged care reforms taking effect from 1 November 2025. With major changes to how aged care is funded and accessed, Kerri offers some practical insights to help families prepare.
Key financial reforms: What’s changing
One of the most significant changes is to means-tested care fees, which determine how much individuals contribute to their care. Kerri explains that under the new system, more people will be required to pay the maximum co-contribution, with the annual cap increasing from just over $34,000 to nearly $42,000, and the lifetime cap rising from $82,000 to $130,000.
Lower asset thresholds: More people affected
Currently, only those with more than $2 million in assets are required to pay the maximum contribution. From November, that threshold will drop to $1 million. As Kerri notes, this means “many more people are likely to pay the maximum under the new reforms,” making early financial planning more important than ever.
New retention rules for RADs
The reforms will also introduce a retention amount on the Refundable Accommodation Deposit (RAD). From 1 November, aged care providers will be allowed to retain 2% of the RAD balance per year for the first five years. Kerri highlights that this could result in up to 10% of the RAD being withheld, which has important implications for estate planning and long-term financial management.
How can families prepare?
Kerri encourages families to start planning early, even if aged care isn’t an immediate concern. She recommends requesting an aged care assessment if health or mobility changes, reviewing Centrelink or DVA asset records annually, ensuring Enduring Power of Attorney and Guardianship documents are valid and accessible, and seeking advice before downsizing or gifting assets, as these can affect aged care eligibility.
She adds that “care costs can be considerable when health declines, especially if you are paying these costs out of pocket and have missed out on accessing Support at Home care.”
The emotional side of aged care decisions
Beyond the financial considerations, Kerri reflects on the emotional complexity of aged care decisions. Sharing a personal story, she describes her grandfather’s insistence on staying at home, despite the challenges: “His self-imposed house arrest is one he is happy with, but how long can it last?”
She encourages families to consider not just the physical suitability of a home, but also the emotional and social wellbeing of their loved ones, especially as isolation and mobility issues begin to take a toll.
Read the full article to explore Kerri’s insights and learn how these changes could affect your family’s aged care planning.
The article was originally published from view.com.au and was also featured in 7 News.
