The fees paid by residents in aged care and recipients of home care are changing from 1 November. Initially slated to commence on 1 July 2025, the changes were delayed giving aged care and home care providers more time to get ready. So, what’s changing?
Commonwealth Home Support Program:
Will transition to Support at Home no earlier than 1 July 2027.
Home Care:
If you have a Home Care Package, or were on the national waiting list on 12 September 2024, you will be transitioned to the new Support at Home Program throughout 2026. Your new Support at Home fees will be capped at your prevailing Income Tested Fee under the ‘no worse off principle’ and you retain any unspent package funds. From 1 November unspent funds will be limited to 10% of your quarterly package budget.
Support at Home Program:
The new program will group services into 3 categories: clinical care, independence support, and everyday living. You ‘contribute’ a percentage to each category based on your financial means, see table. Service provider administration fees are capped at 10%.
Standard participant contribution rates from November 2025
| Age Pension Status | Clinical Care | Independence | Everyday Living |
| Full pensioner | 0% | 5% | 17.5% |
| Part pensioner and eligible for a Commonwealth Seniors Health Card | 0% | Between 5% and 50% depending on income and assets | Between 17.5% and 80% depending on income and assets |
| Self-funded retiree | 0% | 50% | 80% |
Residential Aged Care (Nursing Homes):
Existing residents in permanent residential aged care before 1 November 2025 are mostly unaffected by the changes. Fees are calculated under the current structure (old rules). If you pay additional or extra care fees you will need to sign a new contract with your facility for a Higher Everyday Living Fee (HELF).
Older Australians entering residential aged care on or after 1 November 2025 will (most likely) pay higher fees.
Accommodation fees
The Refundable Accommodation Deposit / Contribution (RAD / RAC) will be subject to 2%pa retention for 5 years from first payment, up to a maximum 10%.
Daily Accommodation Payments (DAP) will be indexed twice annually in line with CPI.
You may opt-in to a Higher Everyday Living Fee (HELF).
Living and Care contributions
If you were granted a home care package, or on the national waiting list, on 12 September 2024 your fees are calculated under the current structure (old rules).
If you had NOT had an ACAT and been approved for a home care package on or before 12 September 2024, you will be assessed under the new rules.
If you are thinking of accessing commonwealth-subsidised aged care services for yourself or a loved one, and are uncertain of the fees or affordability, please let us know.
