Should you keep your family home after moving into aged care?

September 9, 2026 — 3:00am

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Keeping your home after moving into aged care can feel like the safe option. You retain an asset, preserve the possibility of returning home and it receives generous treatment under both the age pension and aged care means tests. But there’s a risk families often overlook: what happens if the property value falls?

The Australian belief that property prices only go up is shaky. With national property prices down 3.6 per cent since March, the idea that the family home is a guaranteed store of wealth deserves a second look.

The special treatment of the home can amount to tens of thousands of dollars of increased pension and lower aged care costs. But a fall in its value can wipe out that advantage — and potentially leave them worse off.

Consider Sally. She is moving into aged care with a refundable accommodation deposit (RAD) of $600,000. Her home is worth $1.3 million,........

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