Starting from November 1, 2025, aged care services in Australia will undergo a significant transformation under the Aged Care Act 2021. This new law aims to reshape how care is provided to older Australians, impacting everything from home care services to aged care facilities. The goal is simple: to offer better care, more choices, and stronger rights to the people who need it the most.
What’s Changing and Why?
The changes come as a response to the findings of the Royal Commission into Aged Care Quality and Safety, which highlighted the need for a more efficient, transparent, and person-centered system. The Australian government currently invests over $27 billion a year into aged care, and with the growing number of elderly citizens, it’s clear that improvements were needed to meet the demand and maintain fairness across the system.
Some of the key changes include:
- Easier access to services
- Improved care quality
- More accountability from providers
- Better protection of older people’s rights
A New Support at Home Program
One of the most significant changes is the introduction of the Support at Home Program, which will replace the current Home Care Packages (HCP) and Short-Term Restorative Care (STRC) programs. The new program is designed to simplify the process of getting care at home, grouping services into three main areas:
- Health and medical care
- Support to maintain independence
- Assistance with daily tasks
Under this new system, there will be a lifetime cap of $130,000 for non-medical services. Additionally, individuals won’t be required to pay more than $101.16 per day for these services.
Streamlined Eligibility Checks
Until now, two separate systems—ACAT and RAS—were used to assess eligibility for aged care services. But from November 2025, these will be merged into a single, unified system. This should make things much simpler and faster, meaning people will have quicker access to care with less red tape.
24/7 Nurses and More Care Staff
Aged care homes will also face stricter staffing requirements. These new rules ensure that all residents receive the proper level of attention and care, including:
- A registered nurse must be on-site 24/7
- More care minutes per resident
- Better staff-to-resident ratios
Additional rules include requiring staff to be trained in infection control, ensuring food meets better nutrition standards, and scheduling regular health checks for residents.
New Rights for Older People
Another important change is the introduction of a Charter of Aged Care Rights. This set of promises aims to protect older Australians who receive care, ensuring they are treated with dignity and respect. These rights include:
- The right to safety and respect
- The right to receive quality care
- The right to be free from abuse
- The right to voice complaints
- The right for families to receive support and advice
Every provider must adhere to these rights, offering a level of accountability that hasn’t been as clearly defined in the past.
Simplified and Transparent Costs
Many people have complained about confusing billing practices in aged care. The new law tackles this issue head-on. Providers will be required to display clear cost breakdowns, making it easier for individuals to understand what they are paying for. Additionally, all funds spent by providers must be accurately reported. This transparency will help eliminate confusion about the costs of services and subsidies.
Key Dates to Remember
A few important milestones are coming up as part of this transition:
- Feb 21, 2025 – Email inquiries to care teams will end; all contact must go through the Aged Care Provider Portal (ACPP)
- June 6, 2025 – New tools for the Support at Home Program will be released
- June 25, 2025 – The government will review care fees and payments
- Nov 1, 2025 – The Aged Care Act 2021 officially begins, and all changes take effect
How Will These Changes Help?
The reforms are designed to give families more control and choice over the care their loved ones receive. Here’s how:
- Easier access to and selection of care providers
- Better tools for planning and managing care
- Clearer, more understandable cost details
- Faster access to support and health services
If you have an elderly family member, it might be helpful to familiarize yourself with these upcoming changes now to prepare for what’s ahead.
What Care Providers Need to Know
Aged care providers will need to get up to speed with these changes as well. Some things they’ll need to do include:
- Implementing new digital tools and billing systems
- Providing more detailed reports on their services
- Hiring and training additional staff, especially nurses and care workers
- Adhering to the new rules set out in the Aged Care Provider Portal
The Support at Home eKit, which includes templates and tools for managing records and claims, will also be crucial for providers.
A Better System for the Future
The 2025 Aged Care Reforms represent a critical step in improving the aged care system in Australia. These changes are designed to ensure that older Australians can live with dignity and receive the high-quality care they deserve. Families, seniors, and care providers alike will need to adjust and prepare for a system that’s more transparent, accountable, and responsive to the needs of older people.
Ultimately, these reforms offer a chance to build a more robust system for the future, ensuring that every Australian, no matter their age, is cared for with respect and compassion.
