Essentially the new reforms are designed to provide more support to stay at home (and out of the caravan park).

The brand new Support at Home program consolidates the old Home Care Packages and Short Term Restorative Care into one streamlined scheme.

There’ll be eight different funding levels ranging up to $78,000 per year, providing older Australians with greater flexibility to tailor support for their actual needs.

If you or your loved one is already on a Home Care Package (or approved for one by 30 June 2025), you won’t miss out. You’ll automatically shift to Support at Home later this year with any unspent money carried across. So no ‘use it or lose it’ pressure.

The program also introduces expanded access to home modifications (such as ramps, handrails and smart tech) and a new national equipment loan scheme for mobility aids and assistive technology. This will make it easier and safer to live independently without fully relying on family.

NEW RIGHTS, NEW RULES, MORE ACCOUNTABILITY
The New Aged Care Act kicks off at the same time, enshrining the Statement of Rights into law. This is no longer a polite guide on the fridge but a legally binding promise.

You have the right to:

  • safe and high quality care
  • independence and privacy
  • being heard without fear of retribution, and
  • active involvement in decisions about your care.

A watchdog with sharper teeth means providers must meet higher standards of accountability, with stronger complaints processes, transparency of costs and clearer care planning.

RESIDENTIAL AGED CARE HIGHER COSTS, LIFETIME CAP

For those entering residential care, prepare for some key shifts:

  • Room price cap rises from $550,000 to $750,000 (indexed). That’s the maximum for a Refundable Accommodation Deposit (RAD) without government approval.
  • Exit fee: Providers can retain 2% of the RAD per year (capped at 10% if you stay 5+ years).
  • RAD system is being slowly phased out by 2035.
  • Daily Accommodation Payments (DAPs) will increase twice a year with inflation.
  • Means tested contributions apply for personal services, but clinical care remains 100% subsidised.
  • Lifetime cap: Once your fees reach $130,000 across all types of care, or you’ve been in a facility for four years, you stop paying further means tested fees.

This cap is a game changer. It prevents older Australians from draining their estates indefinitely and gives families more certainty when planning ahead.

Easier system navigation
Say goodbye to juggling different assessment teams. From November, the Single Assessment System will be your one entry point into aged care services. By 2027, the government aims to cut home care wait times to a
maximum of three months (a major improvement given current waits can stretch beyond a year).

What about the ‘grey nomad’ lifestyle?
Here’s the uplifting part…
If your plan is to hit the road, the reforms should give you more control. You’ll be able to tailor your Support at Home budget, pause services if you’re away, then pick them up again without losing funds.

But if your adventures eventually lead you into residential care, the new cost structures and RAD increases will matter, especially if you’re relying on the value of your home or savings to cover fees.

That makes forward planning critical to protect your lifestyle (and your BBQ fund).

GRANDFATHERING PROTECTIONS
No shocks for current residents
If you’re already receiving residential care or in a Home Care Package by 12 September 2024, you’re covered by grandfathering rules. You keep your current arrangements unless you actively opt into the new system.

The bottom line
From 1 November 2025, the aged care system will work harder for older Australians.

Expect:

  • more choice and flexibility at home
  • clear and enforceable rights
  • higher fees for new residential care entrants, but with a lifetime safety net, and
  • a simpler, faster system to access help.

So before you spend your retirement fund on a caravan and a fishing rod, let’s talk through how these reforms might shape your future.

A little planning today could mean both freedom on the road and peace of mind about the road ahead.