Home / In retirement / Aged care / Aged care reforms: Changes to services, increased costs
An elderly man with a caregiver assisting him in exercise at home.

Aged care reforms: Changes to services, increased costs

Australians seeking aged care and aged care service providers have been given some extra time to grasp major changes to the rules, with the start date of the new Aged Care Act pushed back from 1 July to 1 November 2025.

While there could still be a few tweaks here and there from government and service providers, the essence of the new Act is that most people are going to be asked to choose the care services they need and potentially make a higher contribution where they can.

The changes will ultimately result in users paying more for both government-subsidised help at home and residential aged care.

The reforms focus on keeping people at home, but with a distinction being made between clinical care and non-care and who pays for what.

Who and what services will be affected?

Self-funded retirees will continue to pay the lion’s share of their aged care costs; however, for everyone receiving services, significant changes to the way charges are calculated will take some careful planning. 

The government will fund clinical care for everyone, regardless of means. But those receiving non-care services, like showering, medication assistance, cleaning, gardening and shopping, will be paying more.

About the author

Related topics,

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

© Copyright SuperGuide 2008-25. Copyright for this guide belongs to SuperGuide Pty Ltd, and cannot be reproduced without express and specific consent. Learn more

Leave a Reply