Aged care decisions don’t just determine where someone lives or what support they receive. They can shape a family’s financial security, pension entitlements, estate plans, and peace of mind for years to come. For many Australians, these choices are made during stressful moments, for example a hospital discharge, a sudden decline in health, or another crisis that necessitates quick decisions. In those moments, families often turn to whoever appears knowledgeable. But not all “aged care advice” is delivered within a clear, regulated framework.
With significant aged care reforms now in place as of 1 November 2025, including changes to funding arrangements and Support at Home, the financial consequences of getting decisions wrong are greater than ever. That’s exactly where effectively regulated aged care advice would make a significant difference. A clearer, stronger regulatory framework would help ensure the guidance families receive is not just helpful, but appropriate and aligned with each individual’s best interests.
Why Regulated Aged Care Financial Advice Matters
Beyond the scope of aged care advice, Financial Advice in Australia is already regulated under the Corporations Act, where licensed financial advisers operate under an Australian Financial Services Licence (AFSL). They are subject to best interest duties, education standards, and oversight, and must provide access to complaints mechanisms and professional indemnity protections.
However, aged care advice sits in a complex intersection between health, accommodation, taxation, Centrelink/DVA, and financial strategy, and is not regulated to the same extent. Because accommodation payments such as Refundable Accommodation Payments (RADs) and Daily Accommodation Payments (DAPs) are not themselves financial products, confusion can arise about where “information” ends and personal financial advice begins.
In practice, many aged care funding conversations involve recommendations about:
- Selling or retaining the family home
- Drawing down investments
- Restructuring assets
- Managing pension implications
- Modelling different funding strategies over time
When personal financial circumstances are used to recommend a strategy, that can cross into financial product advice, yet not all providers offering aged care “guidance” necessarily operate within the financial advice regulatory framework. This regulatory grey area creates inconsistency, leaving families unsure whether the person advising them is subject to professional standards, best interest obligations, or enforceable consumer protections. Stronger and clearer regulation would reduce ambiguity and better protect older Australians.
The Real Risks of Unregulated Aged Care Financial Advice
Without strong oversight from a body responsible for regulated aged care financial advice, families can face:
- Incomplete strategy modelling: decisions based only on immediate fees, without considering long-term cashflow or estate implications
- Unrecognised conflicts of interest: where a recommendation may favour a provider’s commercial relationships
- Missed entitlements: such as pension impacts that weren’t fully considered
- Irreversible decisions: like selling a home unnecessarily or restructuring assets in a way that reduces flexibility
- Limited recourse: if something goes wrong and the advice was not delivered within a licensed framework
Aged care decisions are often made under an Enduring Power of Attorney, adding another layer of responsibility. The financial vulnerability of older Australians means that advice should be delivered within a framework designed to safeguard dignity, assets, and long-term security.
Stronger regulation would help clarify:
- What constitutes personal financial advice in aged care
- Who is authorised to provide it
- What consumer protections must apply
As aged care funding increasingly shifts more responsibility onto individuals, the importance of high-quality, accountable advice grows alongside it.
What Families Can Do Now
While broader regulatory reform continues to be discussed, families can still take practical steps today to protect themselves.
First, understand the distinction between information and personal advice. In short, information explains how the system works, personal advice recommends what action should be taken based on one’s own circumstances. If someone is recommending how to use assets, restructure finances, or fund accommodation payments based on your personal circumstances, you should feel comfortable asking important questions such as:
- Are you authorised under an Australian Financial Services Licence (AFSL)?
- Can I check your details on the Financial Advisers Register?
- What consumer protections apply to this advice?
- How are conflicts of interest managed?
You can verify whether a person is a registered financial adviser via the Financial Advisers Register through ASIC’s MoneySmart website.
Second, consider early planning. Many families seek advice only during a crisis. Proactive conversations, even before care is required, allow for calmer, better-structured decision-making.
Finally, seek holistic advice that looks at the whole picture: care needs, funding strategies, pension implications, taxation, and estate planning. Aged care is rarely just a single decision; it’s a sequence of decisions over time.
Why Clearer, Regulated Aged Care Financial Advice is Essential
Australia’s ageing population means aged care decisions will affect millions more families in the decades ahead. As the system grows more complex and individuals shoulder a greater share of costs, the need for clearer and stronger regulation of aged care financial advice becomes increasingly urgent. Effectively regulated aged care advice would help ensure older Australians receive guidance that is competent, transparent, and aligned with their best interests. It would reduce ambiguity, close regulatory gaps, and strengthen consumer protection at a time of life when vulnerability is heightened.
Until that framework is strengthened, families must take extra care to verify credentials, ask questions, and ensure the advice they rely on sits within a proper regulatory environment. At the end of the day, aged care decisions are not just financial, they should also consider care preferences, dignity, security, family legacy, and much more.
If you or your parents are facing aged care decisions, Priority Advisory Group’s Aged Care team can help you navigate the system carefully and responsibly. Even in the absence of official oversight and aged care regulation, our Aged Care team are committed to delivering advice in a manner that would hold up to such important scrutiny, should it ever be put in place. To discuss your situation, call 1300 349 188 or visit www.priorityag.com.au/contact/.