Many families are caught off-guard by it. Your family member has an NDIS plan, their supports are in place, and then a 65th birthday approaches and someone mentions "aged care." Suddenly there are questions nobody prepared you for.

The NDIS aged care question at 65 is genuinely confusing, and the stakes are high. This post walks through exactly what happens, what your options are, and the practical steps involved if a transition to aged care turns out to be the right choice. If your family member lives in Specialist Disability Accommodation (SDA), there are specific housing implications you need to understand before any decision is made.

This is general information only and does not constitute advice about your family member's specific National Disability Insurance Scheme (NDIS) plan.

What the NDIS Age Rule Actually Means

The age rule trips a lot of families up, so let's be clear about how it actually works.

To apply to join the NDIS, a person must be under 65 on the day they apply. If your family member is already 65 or older and has never been on the NDIS, they cannot apply now. They would access supports through My Aged Care instead.

But here is the part many families don't realise: if your family member is already an NDIS participant and turns 65, they do not automatically lose access to the scheme.

Turning 65 opens a choice, not a door that closes.

When an existing participant reaches 65, they can choose to stay with the NDIS or transition to the Commonwealth aged care system. What they cannot do is keep both. It is one or the other.

One more important point: if your family member moves permanently into a residential aged care facility for the first time after turning 65, they must leave the NDIS. That is the exception where the choice no longer applies.

For most families, the question is not "will my family member lose their NDIS plan?" It is "should they stay on it or move to aged care, and what does each option mean for their life?"

Your Two Options at 65: Stay with the NDIS or Move to Aged Care

Understanding the difference between these two systems matters before any decision is made.

Option 1: Stay with the NDIS

If your family member chooses to stay, their plan continues as normal. NDIS plan reviews proceed on the usual schedule. SDA funding, Supported Independent Living (SIL) supports, and any other funded items remain in place. For participants with significant disability and high support needs, particularly those already living in SDA, staying with the NDIS is generally the stronger option. The NDIS was specifically designed for people with permanent and significant disability. It offers individualised funding, genuine choice over providers, and purpose-built housing options that the aged care system is not designed to replicate.

For more detail on how SDA eligibility requirements work and why they matter at this decision point, that page explains the criteria that make SDA a long-term option worth protecting.

Option 2: Transition to aged care

Your family member can choose to leave the NDIS and receive supports through My Aged Care. Once the transition is complete, their NDIS plan closes. This is largely irreversible. Returning to the NDIS after closing a plan is not a straightforward process, and re-entry is not guaranteed.

The aged care system works differently. Supports are assessed and allocated based on a needs model, and participants typically have less individual control over which providers they use. That is not necessarily wrong for everyone, but families should understand the trade-off clearly before agreeing to it.

For a fuller picture, the NDIS "Leaving the Scheme" guidance at NDIS.gov.au explains the formal process and what participants can expect.

What Happens to Your SDA Housing if You Transition to Aged Care

This is the section that matters most for families whose family member lives in SDA, and it is the part that most other guides leave out entirely.

SDA funding is a line item within an NDIS plan. When a plan closes, that funding closes with it. There is no mechanism to carry SDA funding into the aged care system. If your family member transitions to aged care, they will need to leave their SDA home.

For families who have gone through the SDA application process, found a good home, and watched their family member settle in, this is alarming news. And that is the point: it should be understood well before a 65th birthday, not discovered in the middle of a transition.

If your family member stays on the NDIS, their SDA continues as normal. The SDA and NDIS funding relationship post explains in detail how the two are structured together, and why one depends on the other.

For further context on how SDA funding is calculated and what it covers, SDA funding explained is a useful companion read.

Step-by-Step: How to Transition from NDIS to Aged Care (If That's Your Choice)

This is not the right choice for everyone, but if your family has decided it is, here is how the process works.

Step 1: Talk with your support coordinator first.

Before anything else, speak with your family member's support coordinator. They can explain what the transition means for your specific plan, which supports would be affected, and what the aged care system is likely to offer in their place. Do not skip this step.

Step 2: Contact My Aged Care to start an assessment.

Call My Aged Care on 1800 200 422 or apply for a My Aged Care assessment online at myagedcare.gov.au. From 9 December 2024, the separate ACAT (Aged Care Assessment Team) and RAS processes have merged into a single aged care assessment system. One assessment covers both home care and residential care needs.

Step 3: Complete the aged care assessment.

An assessor will arrange a visit to understand your family member's support needs. This is the aged care equivalent of an NDIS functional capacity assessment.

Step 4: Notify the NDIS in writing.

The transition from NDIS to aged care does not happen automatically. Your family member must formally notify the NDIA (National Disability Insurance Agency) in writing that they wish to leave the scheme. This is a required step.

Step 5: Your family member's NDIS plan closes.

After formal notification is processed, the NDIS plan closes. At this point, NDIS funding, including SDA, ceases.

Allow several weeks across Steps 2 to 5. The two systems do not move at the same pace, and it is worth ensuring aged care supports are in place before the NDIS plan closes. If your family member lives in SDA, alternative accommodation must be arranged before that point.

What Families Should Think About Before the Transition

The transition from NDIS to aged care is a significant decision. It is largely irreversible, and the housing implications alone make it worth approaching carefully.

Before agreeing to any transition, ask:

• Will aged care provide the same level of support my family member currently receives?
• What happens to their SDA home if the plan closes?
• Will they still have the same choice and control over their daily supports?

For participants with significant disability who already have SDA in place and are receiving high levels of support, staying on the NDIS is worth serious consideration. The NDIS was designed for exactly this population. Aged care was designed with a different group in mind.

That said, aged care can be the right choice for some people, particularly those whose primary needs have shifted toward age-related support rather than disability-specific support. Families deserve to understand both sides honestly, not just be pushed toward one decision or the other.

If you are weighing this up, a disability advocate or your support coordinator can help your family think through the decision independently. Understanding the SDA assessment process your family member has already been through can also help clarify what they stand to lose if they leave the NDIS.

Conclusion

Turning 65 does not automatically end NDIS participation. For existing participants, it opens a choice between the NDIS and the aged care system. That choice is significant and largely irreversible, and for families with a loved one in SDA, the NDIS aged care crossroads directly affects their housing.

The clearest advice we can offer: start this conversation early, before the birthday arrives, and speak with a support coordinator before committing to anything. Understanding the implications for SDA housing specifically is something families often wish they had done sooner.

We are a housing provider, not a support coordinator, so for advice specific to your family member's NDIS plan, your support coordinator is the right starting point. But if you have questions about SDA housing and what it means for your family, we're always happy to talk.

Call us on (03) 9999 7418, email admin@paramounthomes.com.au, or visit www.paramounthomes.com.au.