Residential Aged care reforms

From November 2025, the government is changing how residential aged care works. The new Aged Care Act 2025 sets clearer rights for residents, introduces rules around fees, and strengthens staffing and care standards. You don’t need to do anything right now. Most reform changes won’t affect your current care straight away. The FAQs below, we break down what these changes mean for fees, staffing, and your rights.

Key changes from 1 November 2025 include:

• A new funding model based on each resident’s assessed care needs
• No fee increases for current residents
• Clearer rules for fees and accommodation charges
• Price caps on how much providers can charge
• New staff requirements, including 24/7 registered nurses
• Updated means testing for new residents
• Protections for people who can’t afford to pay • Clearer ways for residents to dispute fees or raise complaints

No major fee increases are planned. If you're already in residential aged care, your fees won’t change. If you move in after 1 November 2025, your fees will be assessed under the new rules, which include means testing. Your provider must clearly explain any charges before you agree to move in.

The new funding model, called AN-ACC (Australian National Aged Care Classification), gives aged care homes funding based on each resident’s assessed care needs. An independent assessor places each resident into one of 13 care levels. This replaces the old model, which relied on information provided by the aged care home itself.

It doesn’t change what you pay out of pocket — your fees are still based on a means test. But it may affect how your care is planned and delivered, as homes receive funding that better matches your individual needs.

Most changes apply to people entering care after 1 November 2025. If you’re already in residential aged care, your fees and services will stay the same unless you choose to move or change rooms.

Yes. All aged care homes must now have a registered nurse on-site 24/7, and staff must provide a minimum number of care minutes each day. This is to ensure residents get more consistent support.

The steps to raise a concern haven’t changed much:

• Start by speaking with your aged care provider
• If the issue isn’t resolved, contact the Aged Care Quality and Safety Commission
• You can also get help from an aged care advocate, who can speak on your behalf

What’s changed under the new system:

• A clearer Statement of Rights gives you stronger grounds to raise concerns
• Providers are legally required to respond promptly and fairly
• The complaints process is now more consistent across all aged care services

If you're already in an aged care home and stay where you are, your accommodation costs stay the same. But if you move to a new aged care home or change providers after 1 November 2025, your fees may be different (details are not final yet as of July 2025). You’ll be assessed under the new rules, and your new provider must clearly explain any accommodation costs before you agree to move in.

If you move to a new room within the same aged care home, your fees may change depending on the type of room — for example, whether it’s bigger, smaller, or has private facilities. The provider must explain any changes before you agree.

If you move to a different provider after 1 November 2025, you may be assessed under the new fee and funding rules, including means testing. The new provider must clearly explain all fees before you move.

Yes. You can change residential aged care homes if a better option suits your needs and budget. Keep in mind that a new means test will apply when you move, which may affect your fees. Fees and costs also differ between providers, so it’s important to review all charges before deciding.

The new Aged Care Act 2024 is a new law that changes how aged care is delivered and funded in Australia. It gives older people clearer legal rights, requires providers to meet higher standards, and introduces programs like Support at Home starting 1 November 2025.

The reforms focus on making aged care fairer, safer, and more transparent. They aim to give older people clearer rights, improve how care is assessed and funded, and strengthen complaint processes.

Most reforms begin on 1 November 2025 under the new Aged Care Act 2024. This includes Support at Home replacing Home Care Packages. The single assessment system has already started rolling out. The Commonwealth Home Support Program will transition later, from 2027.

The reforms aim to make aged care safer and fairer by giving older people clearer rights, using independent assessments to determine care needs, increasing fee transparency, setting price caps, strengthening complaint processes, and updating funding models for home and residential care. Under the reforms, Home Care Packages are been replaced by the Support at Home program.

A new single assessment system was introduced in December 2024 to simplify how care needs are assessed for home care and residential care. This replaces multiple assessments to make access easier.

Means-tested fees will continue under the new reforms, but some rules about fees and charges may be updated. Providers must clearly explain all fees, and price caps will protect consumers from excessive charges. For residential aged care, no major fee increases are planned. Current residents will keep their existing fee arrangements, and any fee changes must be disclosed.

The new reforms make aged care more transparent by requiring providers to clearly explain all fees and services. There will be price caps to stop overcharging, stronger rules about what care must be delivered, and more government checks to make sure providers do the right thing. You’ll also have better access to information about your rights and how to make a complaint if needed.

The government says people already receiving aged care will not lose access to support when the new system starts. This means your services should continue at a similar level, but they may be adjusted based on your care needs and available budget under the new rules.

Yes. These reforms are the government’s response to the Royal Commission into Aged Care Quality and Safety, which called for a fairer, safer, and more person-centred aged care system.

The new Aged Care Act includes a Statement of Rights for older people. You can learn more about your rights on the Department of Health website.

You can raise concerns with your provider, contact the Aged Care Quality and Safety Commission, the aged Care advocacy service (Older Persons Advocacy Network - OPAN) or seek support from an aged care advocate.