For those approaching aged care age, there is a common misconception that if you don’t have any money, you won’t get in. However, it’s a myth that may end up becoming a reality for some unless the government increases the accommodation supplement paid for residents of low means.

In January this year, the government lifted the market price cap – the maximum amount aged care homes can charge without seeking approval – from $550,000 to $750,000. Many homes that had set their price at the previous cap simply lifted their price to the new ceiling, and those priced somewhere in between also pulled upwards. When the cap was indexed on July 1, it rose to $758,627.

With many aged care prices now at $750,000 – equivalent to about $160 a day – the supplement is looking increasingly........

© The Sydney Morning Herald