Understanding the Aged Care Reforms
From 1 November 2025, significant reforms to Australia’s aged care system came into effect. These changes are designed to make care more transparent, fair and more closely centred around the needs of older Australians.
The new Aged Care Act introduces a Statement of Rights to strengthen accountability and simplify access to services. The Act also sees the commencement of the Support at Home program replacing Home Care Packages and Short-Term Restorative Care plus changes to residential care place allocation.
We know the reforms have raised concerns and questions from clients, so here’s a simple overview of what has changed and what it means for you and your loved ones.
Key Changes at a Glance
The new Act includes a Statement of Rights to support older Australians in making active, informed decisions about how and where they live and the kinds of aged care support they wish to engage in. It also ensures these decisions are respected with support available to communicate these wishes, needs and preferences.
The Support at Home program replaces the Home Care Packages and Short-Term Restorative Care programs. Support at Home is designed to make it easier for people to receive care without going into an aged care facility. It aims to provide more flexible services, clearer pricing and more consistent quality across providers. The main change being that people will only pay for the services they receive rather than paying a basic daily fee. However, other services now included will cost more and there is community concern about fees escalating plus long wait times.
The reforms include a single assessment process, allowing greater control and simplicity in accessing services. People will have the right to a fair and accurate assessment to find out what funded aged care services are needed and the assessment will respect cultural background, personal experience and cognitive function.
Changes will also be implemented across residential aged care including allocation of places and fees. Places will now be allocated to individuals rather than providers. Once approved, people receive a place immediately and can choose their preferred aged care home, with government funding following them. New rules have been introduced to improve fairness and predictability in costs including standardised fees and more consistent means-testing arrangements across the system.
Community Concerns
The reforms, whilst designed to simplify the process of accessing aged care and providing users with greater choice, have also raised concerns and confusion about fee structures, wait times and staff shortages.
We recognise this brings uncertainty. Some of the common concerns we are hearing include:
- Will costs increase? Many clients are wondering how the new cost structures or how means-testing will affect them or loved ones.
- Will the transition be smooth? Even when the outcome is positive, transitions can feel hard. There is worry about new processes, additional paperwork and quality of new providers.
- Will services change or be disrupted? People already receiving home care or residential care are concerned about whether their current arrangements will alter. Generally speaking:
- people who entered permanent Residential Aged Care before 1 Nov 2025 will remain under the old rules for both ongoing care fees and accommodation payments
- people who were approved for a Home Care Package before 12 Sept 2024 and then subsequently permanently enter Residential Aged Care on or after 1 Nov 2025, their ongoing care fees will remain under the old rules, but accommodation payments will be under the new rules
- existing Home Care recipients as at 12 Sept 2024 are no worse off under the new scheme
Your concerns are valid, and we wish to assure you that you are not alone in working through them. Change in this space can feel personal and emotional because it affects the care and wellbeing of people we love.
How We Can Support You
Please be assured, our team is across all aspects of the reform and what it means for clients in different circumstances. We are actively working through the new rules to ensure your financial strategy remains sound and your aged care plan continues to meet your needs.
We are experienced in navigating both the financial and emotional side of aged care decisions. You don’t need to make sense of these reforms on your own.
If you have any questions, feel uncertain about how the changes may impact you or a family member, or simply want reassurance, please reach out. We are here to guide you, talk things through and help you make confident, informed decisions.
