Specialist Aged Care Financial Advice in Melbourne

Your ageing parents or other family members may need permanent care through a residential aged care solution. Can they afford it? How can you ensure a sustainable income for them to cover the costs? What are the best options? As an Aged Care Specialist, Ilya has the answers.

Financial advice for those in or considering residential Aged Care

Work with us to:

- Review and develop your financial strategy to fund the cost of residential Aged Care
- Receive expert advice on in-home and residential care options
- Understand how your Centrelink eligibility is going to be affected when moving into residential Care and receive advice on maximising social security entitlements
- Receive advice on arranging assets and cashflow to ensure sustainable income to cover the costs while in Aged Care
- Receive advice on reducing means-tested fees for residential Aged Care and Home Care package purposes
- Receive trusted Aged Care advice to help you make financial decisions while you are busy arranging the best choice of care for your family member

Do your ageing parents or other family members qualify for social security or other government subsidy programs or benefits? Do you understand how their entitlements are going to be affected when transitioning into care? What are the best payment options considering your family member’s circumstances?

Is it possible to reduce means-tested fees and the amount of refundable accommodation deposit (RAD)? Will your loved one’s assets and any Centrelink entitlements produce enough income to cover the costs in Aged Care? How do you best manage their financial situation, along with conflicting opinions from family, which can cause an emotionally charged situation?

With Financial Balance Group’s personalised process and tailored expert advice, you can look forward to improving the value of the estate by spending less on care fees, and by bettering aged care pension entitlements, thus enhancing your Aged Care outcomes and leading to:

- A smooth transition for your family member into appropriate aged care
- Easy undertaking of your loved one’s Centrelink Income and Asset Assessments
- A flexible payment option, resulting in an affordable solution
- Management of all related paperwork
- The best outcome for your family member
- The best outcome for the family and the estate
- Reduced financial worry
- Peace of mind for everyone

Ilya Egorov CFP® Financial Balance Group

As Director of Financial Balance Group in Melbourne, Ilya Egorov is recognised for delivering clear, compassionate financial advice that helps families confidently navigate the complexities of aged care and retirement. With 15 years’ experience, Ilya has developed a strong reputation for guiding clients through some of life’s most important and emotional financial decisions.

Ilya’s dedication to aged care advice has recently been recognised, with his selection as a finalist in the prestigious 2025 Aged Care Steps Awards.
Drawing on deep technical expertise and a genuine, empathetic approach, Ilya supports clients in making informed decisions, reducing stress, and achieving better financial outcomes during critical life transitions.

Simplifying the transition to aged care homes with financial planning

Moving a loved one into residential aged care is one of the most emotionally and financially demanding experiences you can face. If you feel pressure from having to make high-stakes care decisions while juggling work and home, you are not alone.

Ilya Egorov, our CERTIFIED FINANCIAL PLANNER® professional and Aged Care Specialist, knows that behind every residential care situation is a family simply trying to do what’s right for their parents. We offer clear advice to help manage the administrative burden, explain technical jargon and clear the confusion with financial arrangements, so you can focus on your loved ones’ well-being.

The complexities of the Australian aged care system

Watching a parent struggle while you fight a wave of paperwork is exhausting. The new Aged Care Act reforms transformed the funding model, turning an already confusing system into a minefield for the uninformed and unprepared.

At the time of transition to residential care, families are asked to choose between the types of accommodation payments, RAD and DAP, understand daily fees and the means of assessments before they fully grasp how each decision determines financial outcomes. The jargon alone can feel like a foreign language, and a single wrong box ticked on a form can inadvertently cost the family estate thousands.

But you shouldn’t have to be a policy expert to care for your family. Our aged care financial advice cuts through the noise and gives you a clear, practical and sustainable plan.

We turn complex rules and regulations into a clear financial plan with sustainable outcomes

The family home: Should you sell, lease or keep it?

The problem: For many, the home is the largest asset and represents not only a financial but also an emotional decision. Keeping, selling or renting it can affect aged care fees, age pension entitlements and estate planning. The wrong decision may create an unnecessary cash-flow gridlock and reduce the value of the estate for beneficiaries.
The solution: We help families gain clarity by modelling “Keep vs Lease vs. Sell” scenarios, which provide clients a clear picture of the most optimal decision. By exploring various strategies, we help address three key issues by minimising aged care costs, protecting social security benefits and preserving the value of the future estate for beneficiaries.

Understanding and reducing means-tested aged care fees in Australia

The problem: The November 2025 reforms introduced a number of changes affecting residential care accommodation costs and means-tested fees, with some grandfathered exemptions. Without careful planning, families may misunderstand how income, assets and the types of accommodation payments affect the ongoing fees, creating avoidable pressure on savings and the value of future estate.
The solution: We review and assess individual financial circumstances, explain the types of accommodation payments and fees that apply in individual scenarios and provide an estimate of total expected costs. As part of the advice process, we help structure assets, income and payment options to manage ongoing costs and minimise care fees where possible.

We also provide assistance with Centrelink forms, provide guidance through the administrative process and check financial assessments produced by Centrelink for accuracy. As a result, families have fewer surprises and a clear plan with optimised financial results.

Payment structures: Understanding types and methods of accommodation payments

The problem: Not everyone has to pay a Refundable Accommodation Deposit (RAD). We start our process with assessing whether an individual qualifies to be a “supported or a partially supported” care recipient and whether we can assist them to qualify for such status by asset restructure. This determines the type of accommodation payment that will be applicable for them.
For those care recipients who are “self-funded”, choosing between a lump-sum RAD and a Daily Accommodation Payment (DAP) is a critical decision. A RAD requires liquid capital, but is refundable (retention amounts apply), while a DAP can be described as a high-interest rent, calculated using the interest rate set by the government. New retention rules and semi-annual DAP indexation mean that a “default” choice can cost families tens of thousands every year
The solution: We explain the types and methods of accommodation payments thoroughly and provide side-by-side modelling to calculate the “real cost” of “default” decisions for your capital. We provide advice that explains a balanced payment strategy that optimises the Age Pension, maintains liquidity and accounts for the latest rules to provide long-term stability for the estate.

Pension maximisation: Ensuring Centrelink/DVA entitlements are not lost

The problem: When someone enters residential aged care, Services Australia needs to complete a financial assessment, so pension payments and aged care fees are calculated correctly. For this assessment to be accurate, financial records held by Centrelink or DVA need to be updated, and the forms need to be completed correctly. Most families find the burden of these reporting requirements overwhelming during an already emotional and challenging time.
The solution: We assess Centrelink or DVA impacts alongside aged care costs. Our process includes administrative process guidance, determining the correct type of accommodation payment, advice on appropriate assets structure, managing cashflow, modelling scenarios affecting the family home decision and assisting with documentation. Families receive a coordinated strategy that helps preserve social security entitlements where possible, ensuring that aged care is affordable, cashflow is sustainable and administration is under control.

CASE STUDY: Our Melbourne-based Aged care financial advice in action

Making a good aged care financial outcome better

Outcomes at a glance

Financial measure	Before advice	After advice
Annual cash flow	$4,500	$12,500
Annual tax payable	Approx. $4,000	Nil
Additional annual inflows	—	$4,000
Means-tested care fees	Existing level	Retained
Year 1 estate improvement	—	Nearly $8,000
Estimated 3-year estate improvement	—	$24,000
Estimated 5-year estate improvement	—	$40,000

Linda is 86 and is single. Her ability to take care of herself has declined, so her family found a residential care facility for her not far from home. Following the payment of the refundable accommodation deposit (RAD) of $395,000 to the care facility, the family then sought advice on how to best manage Linda’s money moving forward.

Linda’s other assets included a term deposit of $450,000, about $10,000 in the bank and $5,000 in personal assets. She received about $15,500p/a in age pension and had about $50 per week of personal expenses while in care.

After paying the RAD, Linda’s aged care fees amounted to approximately $33,500p/a (basic daily and means-tested fee combined), meaning her pension and investment income from a term deposit gave her a positive cash flow of $4,500 per annum (after paying approximately $4,000 in tax). This was a relatively good outcome for Linda, but we found more improvements.

By carefully restructuring Linda’s assets, we managed to:

– Increase total inflows by $4,000pa by using a specific investment. The nature of this investment is guaranteed income and return of capital, which means no market risk and no investment value fluctuations.
– Retain Linda’s means-tested care fees despite an increase in income.
– Reduce Linda’s tax bill to Nil due to specific tax treatment of the new investment, whereby she no longer needed to lodge a tax return.
– Improve cashflow from $4,500 per annum to $12,500 per annum.

As a result of these improvements, the value of Linda’s estate increased by nearly $8,000 in year 1. With the average life in residential care around 3 years, incremental improvements in savings are leading to a compounded increase in the value of Linda’s estate by an estimated $24,000 over 3 years and $40,000 if Linda lives for 5 years.

This improved positive cashflow of $12,500 p/a means Linda’s family can be assured that she will not run out of money while receiving high quality care. Furthermore, the new investment was secured at a relatively high level of interest rates, which means Linda will not need to depend on the ever-changing term deposit rates.

Disclaimer: The above case study does not take into account your own personal and financial circumstances and should not be used as a basis for financial decisions. It is essential to seek advice tailored to your specific circumstances, so that your financial path can be navigated with precision and care.

What our clients say

Ilya is pleased to share the positive feedback he receives from those he’s helped with financial planning services in Melbourne.

Watch: Practical Guidance for Families Navigating Aged Care

Award nominations: The ACS Aged Care Adviser of the Year Awards | Financial Balance Group

Inspiring Client Story | Financial Balance Group – Aged Care Financial Advice in Melbourne

Best Aged Care Adviser in Box Hill VIC 3128 - Financial Balance Group | Ph 0432 673 370 #agedcareadvice

Aged Care Financial Planning near Templestowe VIC 3106 - Financial Balance Group | Ph 0432 673 370

Tips to prepare for aged care: Planning and Assessment | Financial Balance Group

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What are some of the biggest mistakes about transition to aged care? | Financial Balance Group

Let an accredited Aged Care Specialist financial planner simplify the path forward

With a transparent, flat-fee model and specialist accreditation, Financial Balance Group provides the technical expertise and genuine empathy to help you with the transition to residential aged care and protect your family’s estate. We act as your single point of contact and simplify the complex so you can focus on your parents’ well-being.

Learn more about our Aged Care financial advice in Melbourne, or explore our broader support across retirement planning and estate planning. When you’re ready, book a no-obligation, confidential consultation to get practical guidance.

FAQs

How is the family home assessed for Aged Care?

Family home and aged care rules can affect fees, Age Pension entitlements and estate planning outcomes. However, the home is not assessed at its full market value.

While the value of the former home is exempt for the age pension purposes, it is assessed at a capped value, indexed twice a year, unless it is occupied by a protected person.

Can we afford a Refundable Accommodation Deposit (RAD) without selling the house?

Possibly. As mentioned previously, not everyone has to pay a RAD. The type of applicable accommodation payment depends on whether an individual may qualify as a “supported” care recipient.

For self-funded care recipients, RAD does not have to be paid entirely upfront. Families may choose to pay a full or a partial lump sum RAD, a Daily Accommodation Payment, known as a DAP, or a combination of both. You cannot be asked to choose your payment option before moving into the aged care home. Once you have opted to pay a RAD, the care facility may refuse to change this method to daily accommodation payments.

A RAD is counted as an assessable asset in the aged care means assessment, even if paid by a family member. This means the payment method can affect aged care fees, social security, cashflow and estate outcomes. The right structure depends on available capital, impact on the age pension, cashflow requirements and the family’s goals.

Decisions on keeping, selling or renting the home can significantly change the financial outcome. This is why families should get advice that will model the home decision outcomes in connection with relevant factors before making a final call.

How do we reduce means-tested fees?

Means-tested aged care fees in Australia are determined by levels of an individual’s income and assets. They are paid in addition to the basic daily fee, accommodation costs and any additional service fees. For existing care residents who entered care before 1 November 2025, this includes a means-tested care fee. For residents with post-1 November 2025 arrangements, the means-tested fees may include the hotelling contribution and non-clinical care contribution. Certain exemptions are applicable, so it is important to understand the individual circumstances to determine which types of fees will apply.

Means-tested fees cannot be just “reduced” through shortcuts like gifting assets to family. This process needs to be managed through careful considerations, and planning around assets structure, understanding the applicable accommodation payment type and choosing a suitable payment method. Daily, annual and lifetime caps may also limit how much a resident will pay in means-tested fees during their stay in residential care.

What is the “low means” threshold?

“Low means” or (partially) supported status is not determined by a single fixed dollar threshold. Services Australia determines “supported” status based on the resident’s income and assets at the date they enter an aged care home, using a specific formula which results in their individual means-tested amount. That status determines whether the resident receives government support with accommodation costs and the means-tested fees. Once set, the “low means” status does not change while the resident remains in the same home.