Everything You Need to Know About the New Aged Care Act
There have been changes to Australia’s aged care system with the introduction of the New Aged Care Act, which started on 1 November 2025. The Act aims to create a fairer and more sustainable system, putting the rights and needs of older Australians first.
We’ve broken down the key points to help you understand what’s changing, and what it might mean for you!
A New “Support At Home” Program
If you currently receive a Home Care Package, this program has been replaced by the new Support at Home system from 1 November 2025.
The idea is to make care more flexible, giving you access to the right mix of services and equipment to help you stay healthy and connected to your community.
Now, with Support at Home:
You’ll only pay for the services you use, instead of paying a set basic daily fee and a daily income tested care fee.
Your contribution will depend on your income and assets, not just your income as before.
Full and part pensioners will have their fees assessed using the same means test used for the Age Pension.
Self-funded retirees will provide their financial details to Services Australia to determine contribution levels.
If you already have a Home Care Package (or are on the waiting list as of 12 September 2024), you won’t be worse off. The “no worse off” rule ensures you’ll pay the same or less under the new system.
What You’ll Pay For
Under Support at Home, your contributions will depend on the type of services you receive:
No cost for clinical care (like nursing or physiotherapy).
Moderate contribution for independence services (like personal care, home modifications or assistive equipment).
Higher contribution for everyday living services (like cleaning and gardening).
This structure means that you’ll only pay for what you actually use, saving money for many Australians.
Changes to Residential Aged Care
If you have lived in or moved into an aged care home on or before 31 October 2025, nothing changes. Your current arrangements will continue as long as you remain in care.
For those entering aged care homes after 1 November 2025, there will be a new contribution structure. The biggest shift is a move towards sharing some non-clinical costs (like daily living and lifestyle services) more fairly between residents and the government.
This means that:
The government will now fully fund all clinical care.
A new Non-Clinical Care Contribution (NCCC) will apply for personal support services like bathing, meals and mobility assistance.
There will be daily and lifetime caps to protect residents from paying beyond a reasonable limit ($101.16 per day and $130,000 lifetime, indexed).
A new Hotelling Supplement will help cover things like catering, cleaning and gardening. Residents who can afford it may contribute part or all of this cost, while those who can’t will continue to have it fully covered by the government.
Importantly, hardship assistance will remain available under both Support at Home and residential aged care programs, meaning that everyone can access the care they need.
Plan Ahead with Confidence
These changes are designed to make the system fairer and easier to understand. If you or a loved one are planning to enter aged care in the future, it’s important to know how the new contribution and means testing rules can impact your overall financial position, across super, estate planning, and cash flow.
Now is the time to start planning! Early advice can help you to:
Understand how your assets and income will be assessed.
Structure your finances to manage contributions efficiently.
Avoid unexpected costs or reductions in government support.
Protect your long-term wealth and estate planning goals.
We’re Here to Help
Aged care funding can be complicated, but with the right guidance, it doesn’t have to be stressful.
If you’d like help understanding how the new changes could affect you or your family, our team can walk you through the details and make sure your plan is structured for clarity and confidence!