If you or someone you care for uses aged‑care services (whether at home or in a residential facility), you’ve probably heard about “aged‑care reform”. What this really means is a major overhaul of how aged‑care services are structured, funded and regulated in Australia. These changes are designed to improve quality, choice and transparency — but they also bring new rules, new terminology and new payment arrangements.
Here’s a breakdown of the key changes, what triggers them, and how they might affect you or your loved one.
A new law: The Aged Care Act 2025
From 1 November 2025, the new Aged Care Act takes effect. What it does:
- It replaces the old Act and gives older people who access care a clearer Statement of Rights, so that their dignity, decision‑making and preferences must be respected.
- It strengthens regulation of care‑providers: all providers must register under a new model, comply with updated quality standards, and will be more clearly overseen.
- It changes how providers report on things like accommodation payments for those in residential care.
In short: there will be higher expectations on providers, and greater protection and clarity for older people who receive care.
Home care services re‑shaped: enter Support at Home
One of the biggest changes for people receiving care at home: from 1 November 2025, the Support at Home program replaces the existing Home Care Packages Program (HCP) and Short‑Term Restorative Care Programme (STRC).
Key features:
- The program will have classifications (levels) matched to a person’s assessed care needs. Eight “ongoing service” levels are set, and separate “short‑term or end‑of‑life” pathways too.
- Funding is quarterly rather than the old model of “paying up front” and some unspent funds rolling over. Under the new model, there will be a defined budget for each classification, and only a small carry‑over of unspent funds allowed.
- There is a new focus on assistive technology and home modifications — e.g., equipment or changes to the home to help someone stay independent longer.
- For those already on an HCP (or approved for one by 12 September 2024), there is a guarantee they will be no worse off under Support at Home (i.e., won’t pay more than they would have under the old program).
In practical terms: if you currently receive in‑home care via an HCP, you’ll be moved onto the new system automatically. The services don’t stop, but the rules around budgeting, classification and payments will change.
Changes to payments, contributions and fees
With the system redesign comes changes to how much people pay, what they are responsible for, and how providers are paid. Important points:
- Under Support at Home, contributions from older people will depend on income and assets, and will vary according to the type of service (clinical vs daily living vs independence).
- Clinical supports (e.g., nursing) will often have no contribution required. Services to help independence or everyday living may carry moderate contributions.
- For residential care (moving into a care home), changes include new rules around daily accommodation payments, refundable deposits and how they are reported.
- Providers will be paid on a “payment in arrears”basis for home care services, and from 1 July 2026 price caps for each service will apply.
The upshot: while the system aims to make things fairer and more sustainable, it means older people and their families will need to understand new contribution rules, seek clarity on what services are covered, and monitor how budgets are managed.
What’s staying the same (or transitioning gradually)
- The existing home care and residential systems continue in their current form until the transition dates. So, if you’re already receiving care, there is no immediate abrupt change in service (which supports lower‑level needs at home) this will transition into Support at Home no earlier than 1 July 2027.
What this means for you and your family
Here are some practical take‑aways to help you prepare:
- Check your assessment: Make sure your service provider or assessor has up‑to‑date information about your needs, preferences, home environment and any assistive devices you use.
- Understand your classification: Know which level of support you are in under Support at Home, what your budget is, and which services it covers.
- Monitor contributions: If you’re asked to pay a contribution, check how it is calculated (income and assets assessment) and what services it is tied to (daily living vs clinical).
- Ask about assistive technology and home modifications: One of the benefits of the reform is a greater emphasis on staying independent at home. If you need equipment or home‑modifications (rails, ramps, tech.), ask how you access these under the new system.
- Keep service providers accountable: The new Act means providers must meet higher regulatory standards. If you feel something is off (quality of care, transparency, rights not being respected), you now have stronger protections and avenues to raise concerns.
- Plan for change: The transition will take time. If someone is currently on an HCP or in residential care, talk to their provider about how the changes might affect them, and what remains the same.
- Budget for the future: It’s wise to review your or your loved one’s finances in view of the reform. Even though some contributions may stay the same, the means‑tested part means understanding income and assets becomes more important.
Keeping older people front and centre
Australia’s aged‑care system is undergoing arguably the biggest change in decades. The new Aged Care Act puts older people’s rights front‑and‑centre. The Support at Home program reshapes how in‑home care is structured, budgeted and delivered. And the payment system is changing to reflect income, assets and service type, with new rules for providers and recipients alike.
Although reform can feel complicated and daunting, the goal is clearer: better quality care, more choice, more support for independence, and greater transparency. If you or someone you care for receives aged‑care services, now is a good time to ask questions, get clear about the changes, and ensure the transition means better care rather than uncertainty.
