Are YOU up-to-date on changes to Aged Care?

Major changes to the Australian aged care system commenced on 1 November 2025, with the new Aged Care Act placing the rights of older people at the centre of care. Key reforms impact home care, residential care, funding, and regulation. 

Below is a summary of the changes. You will find the source of the information here.

Key Changes to Aged Care in 2025

Rights and Regulation

• New Aged Care Act The new Act replaced previous aged care laws on 1 November 2025, focusing on a person-centred, rights-based system with a new Statement of Rights.
• Strengthened Quality Standards The Aged Care Quality Standards were strengthened and reduced from eight to seven, with new obligations for providers regarding clinical care, food and nutrition, and the rights of people with dementia.
• New Regulatory Model A risk-based regulatory model was introduced, requiring all providers to register under a single, streamlined process and meet core conditions, including a Code of Conduct for Aged Care.
• Increased Transparency Providers must publish their prices and information about how they spend money on care, food, staff, and accommodation, allowing for easier comparison via the Find a provider tool. 

Home Care

• Support at Home Program This new program replaced the Home Care Packages Program and Short-Term Restorative Care Programme on 1 November 2025, providing a single pathway to access a defined list of in-home services.
• Flexible Funding Under the Support at Home program, individuals only pay for the specific services they receive, and the government covers all clinical care costs (e.g., nursing and physiotherapy).
• Assistive Technology and Home Modifications A new scheme was introduced to provide funding for equipment and home modifications to help people live independently for longer. 

Residential Aged Care

• Places Allocated to People From 1 November 2025, residential aged care places are allocated to older people directly, not providers, giving individuals more choice over where they live.
• Accommodation Funding Changes
  • The maximum refundable accommodation deposit (RAD) amount that a provider can charge without government approval increased from $550,000 to $750,000 as of 1 January 2025.
  • Providers can now retain 2% per year (capped at 5 years) of a resident's RAD to ensure facilities have funds for maintenance and investment.
  • Daily Accommodation Payments (DAPs) for new residents are indexed twice yearly in line with inflation.
• New Fee Structure For new residents, a means-tested Hotelling Supplement Contribution (for daily living costs like meals and cleaning) and a Non-Clinical Care Contribution (for personal care) have been introduced.
• Mandatory Care Minutes and 24/7 Nursing Stricter requirements for care minutes per resident and the presence of a registered nurse on site 24/7 are in effect. 

'No Worse Off' Principle

Existing care recipients (those in residential care before 1 November 2025 or approved for home care packages before 12 September 2024) are protected by a 'no worse off' principle, allowing them to remain on their existing fee and funding arrangements unless they choose to opt into the new system. 

You can explore detailed government guidance on how these changes affect older Australians by reviewing information on the My Aged Care website.