Understanding the New Aged Care Act (Effective 1 November 2025)

What the changes mean for your rights, your care, and your finances.

The new Aged Care Act marks one of the biggest shifts in Australia’s aged care system in decades, placing older Australians firmly at the centre of every decision. Here’s what you need to know, especially from a financial planning perspective:

Your rights are now front and centre

A new rights-based framework ensures older people receive safe, respectful and person-centred care, whether at home or in a residential facility. This gives families greater transparency and confidence when choosing care options.

Support at Home: A new program for home-care services

If you (or a loved one) are planning to access government-funded home care, the new Support at Home program will replace multiple older schemes. From a financial perspective, this means:

• clearer funding rules

• more consistent fee structures

• easier planning around ongoing care costs

Changes to aged care funding & fees

One of the most important updates affects those entering the aged care system after 1 November 2025. 

What this may mean for you:

• New formulas for calculating contributions

• Potential changes to what you pay upfront and ongoing

• Updated means-testing with different thresholds

• More accurate forecasting tools through My Aged Care If you’re comparing options, we recommend using the Aged Care Home Fee Estimator and reviewing your broader strategy with a financial adviser.

For families considering aged care in the next 12–18 months, early planning could provide more flexibility and cost control.

Stronger care standards & new principles

Providers must now meet strengthened quality standards and follow a national Statement of Principles to ensure all care supports:

• dignity

• independence

• fairness

• Advocacy

For families, this means greater accountability and clearer expectations from providers, important when weighing value and cost.

Simplified complaints process

A new national complaints framework makes it easier to raise concerns and resolve issues. This protects both the wellbeing and the financial interests of older people receiving care.

Nominate someone to support you

Older Australians will now be able to formally nominate one or more people to help them navigate the aged care system, improving communication and safeguarding financial decisions.

What this means for you

These reforms are designed to create a fairer, safer and more transparent aged care system, but they also introduce new financial rules that will impact how much you may pay, how you plan, and when to seek advice.

If you’d like support understanding how these changes fit into your retirement and aged care planning, our team is here to help you make clear, confident decisions. Call us today for an obligation free chat 02 9634 6698 or email enquiry@investwisely.au