Australia’s aged care system is undergoing sweeping reforms, originally due to commence on 1 July 2025. However, in a recent update, the Government has postponed the start date to 1 November 2025 to give aged care providers and the broader sector more time to prepare.

This delay applies to the new Aged Care Act, the Support at Home program, and the Residential Aged Care reforms –all of which are part of a unified strategy to improve sustainability of the sector, quality, transparency, and the rights of older Australians.

A new Aged Care Act – from 1 November 2025

The new Aged Care Act will take a rights-based approach to aged care, legislating a Statement of Rights for care recipients. It will also strengthen regulation, quality standards, governance, and accountability across the sector.

Home Care reforms – Support at Home program also delayed

At the centre of the reforms is the introduction of the Support at Home Program, which will replace the current Home Care Packages (HCP) and Commonwealth Home Support Programme (CHSP). This new program aims to streamline home care services and make them more flexible and easier to navigate.

This program introduces:

• A fee-for-service model based on the type of service and pension status
• Eight new care classifications replacing four current HCP levels
• Defined service lists and price caps
• A lifetime non-clinical care cap of $130,000.

For more information, please visit our Support at Home blog.

Residential Aged Care: cost increases delayed to November

Significant changes to residential aged care are also now due to begin 1 November 2025, including:

• Increase in the RAD cap from $550,000 to $750,000
• Introduction of a 2% retention amount (capped at 5 years)
• CPI indexation of Daily Accommodation Payments (DAPs)
• New ongoing fees including the Hotelling Contribution and Non-Clinical Care Contribution.

More details are available in our Residential Care blog.

Need help understanding the changes?

Contact Brendan O’Reilly at Peak Advice to explore how these reforms may fit into your retirement strategy.

We can assist you with navigating these options and helping you choose a solution that’s right for you. From understanding funding rules to coordinating care plans and managing Centrelink entitlements, we’re here to help you make confident, well-informed decisions.