Thinking of lending your parents money for aged care? Check this first

June 3, 2026 — 5:05am

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When a parent moves into residential aged care, it’s common for adult children to want to help out financially. The Refundable Accommodation Deposit (RAD) is normally hundreds of thousands of dollars, so lending money to Mum or Dad can seem like a practical solution.

Additionally, paying the RAD avoids Daily Accommodation Payments, which are currently calculated at 7.96 per cent per annum on any unpaid accommodation balance (and indexed over time).

It can also take pressure off selling the family home, which often has significant emotional value for both the resident and their family. Lending the money can seem like a practical way to reduce costs and providing peace of mind.

Recently, I wrote about lending money between spouses. Lending money to a parent to pay a RAD can have more adverse........

© The Age