Aged Care Reforms: Spring 2025 Update

Changes to how aged care is funded

What will change from 1 November 

The government will continue to fully fund clinical care, whether older people are living in a residential care home, or in their own home.  

To make the aged care system more sustainable, people who can afford to will make a contribution to their non-clinical care costs. A contribution is the amount an older person pays towards their care based on what they can afford. 

Starting 1 November 2025, the new Support at Home program will replace the Home Care Packages Program. Under Support at Home, there will be improved access to services, products, equipment and home modifications to help older people remain healthy, active and socially connected to their community. 

The ‘no worse off’ principle 

If you are already living in an aged care home before 1 November 2025, the ‘no worse off’ principle will ensure that you won’t have to pay more for the cost of your care under the new Act. 

If you were approved for the Home Care Packages (HCP) Program on or before 12 September 2024, the ‘no worse off principle’ means that you will pay the same, or less, in the new Support at Home program as you had to pay in the previous HCP Program.    

You can use the Support at Home fee estimator to see what your contributions may be for each service under Support at Home. The fee estimator will ask questions about when you were approved for a Home Care Package, your income and, for some people, your assets to give you an estimate of your contribution rate. 

Find out more: MyAgedCare.gov.au/upcoming-changes-aged-care-funding-how-they-affect-you#fee-estimator 

New protections for fairness 

For those who make large contributions and stay in care a long time, a fairer system will be in place. If you receive Support at Home services: 

• from 1 November 2025, providers will set their own prices 

• from 1 July 2026, the government will introduce price caps on services  

• you won’t pay a participant contribution for any clinical care services 

• your lifetime contributions will be capped at $130,000 or 4 years, whichever comes first. 

Find out more: MyAgedCare.gov.au/support-home-program 

Financial support and information 

When planning your own finances for aged care or for the person you care for, there are many aspects to consider such as pensions, superannuation and retirement planning. It’s beneficial to seek independent financial advice before deciding how to pay these costs. 

Knowing where to start can be confusing, but there is help available. There are organisations, services and tools that can offer guidance and support. Aged Care Specialist Officers at Services Australia can provide financial information about aged care services. 

Find out more: MyAgedCare.gov.au/financial-support-and-advice 

Financial hardship support 

If you can’t afford to contribute to your care costs, hardship arrangements are available. To apply for financial hardship assistance, you can complete the Aged Care Claim for financial hardship assistance form. 

My Aged Care’s financial support and advice webpage has further information to help you plan your finances for aged care. 

Find out more: MyAgedCare.gov.au/financial-support-and-advice 

Thinking about aged care  

It can help to start having conversations about aged care for you or your loved ones, even before needing any care or support. Here are some other things you can look into to start thinking about aged care:    

• Sign up to receive EngAged, our monthly newsletter for older people, their families and carers: health.gov.au/aged-care-newsletter-subscribe 

• Complete the 2025 Improving Aged Care in Australia Survey which is open from 4 August – 28 November 2025: MyAgedCare.gov.au/news-and-updates/now-open-improving-aged-care-australia-survey 

• Visit one of 30 aged care information hubs operating across Australia between August and November at participating libraries. Find out if there is a location near you: MyAgedCare.gov.au/news-and-updates/aged-care-information-hubs-participating-libraries 

• Talk with us in person at one of the upcoming events around Australia that we’re attending, including: 

Care Expo Brisbane 

12-13 September 2025 

Care Expo Sydney 

14-15 November 2025