Aged Care Reforms in Australia — What Changed and What It Means
November 2025 was the biggest single change to Australian aged care in nearly 30 years. A new Act, a new home care system, and new rights — all at once. Here’s the plain-English version of what actually happened, who it affects, and what’s still coming.
The 60-second version
A new Aged Care Act commenced in November 2025, replacing one from 1997. Home Care Packages became Support at Home, with 8 funding levels instead of 4. Clinical care is now free for everyone. Price caps on services arrive in July 2026. CHSP stays separate until at least July 2027.
Why it changed — and why now
The 2021 Royal Commission into Aged Care Quality and Safety found systemic failures across the sector — inadequate staffing, poor food quality, neglect, and a system that treated older people as administrative problems rather than people with rights. The government’s response was a complete legislative overhaul, the biggest since the original Aged Care Act was passed in 1997.
The changes didn’t all arrive at once. Some — like the Star Ratings system for residential care — came earlier. The main package landed in November 2025 when the new Aged Care Act commenced.
The new Aged Care Act — what it actually means
The 2024 Aged Care Act (commencing November 2025) changed the legal relationship between providers and the people they care for. Under the old Act, obligations were largely administrative. Under the new Act, providers have enforceable obligations to the people in their care.
In practice, this means: if a provider fails to meet the standards, there are real legal consequences — not just compliance processes. Older people and their families now have a clearer legal footing to demand accountability.
The new Act also established a stronger independent advocacy structure. OPAN (the Older Persons Advocacy Network) now has a more formal role, and the complaints pathway through the Aged Care Quality and Safety Commission was strengthened.
Support at Home replacing Home Care Packages
This is the change that affects the most people. Home Care Packages (HCP) — the system of 4 levels of home care funding that has operated since 2015 — was replaced by Support at Home in November 2025.
What changed for existing HCP recipients: automatic transition, with a “no worse off” protection meaning existing service arrangements were protected. You didn’t need to do anything.
What’s different in the new system:
8 funding levels instead of 4 — more precise matching of support to need, with levels ranging from approximately $11,000 to $78,000 per year.
Clinical care is now free for everyone, regardless of income or assets. Under the old system, nursing and allied health services were funded from the package budget, which meant less money for other support. Under Support at Home, clinical services sit outside the budget entirely.
Quarterly funding rather than monthly — the allocated budget is paid in quarterly instalments to the provider.
→Full guide to Support at Home — the 8 levels, what the money covers, how to access it.
Price caps — July 2026
From July 2026, the government will introduce regulated price caps on aged care services. Providers will not be able to charge above a set maximum for each service type. Currently, providers set their own prices within broad guidelines, which has led to significant variation — and in some cases, overcharging.
This is the most significant remaining change still coming. When the specific cap amounts are published (expected in early to mid 2026), this page will be updated with the actual figures.
💡 If you’re currently comparing providers, it’s worth knowing that prices will be capped from July 2026. A provider charging premium rates now may not be able to maintain that differential after caps take effect. Factor this into any long-term comparisons.
What about CHSP?
The Commonwealth Home Support Programme — the entry-level program providing basic help at home (transport, meals, domestic assistance, social support) — is not changing yet. It continues to operate as a separate program and is expected to transition to Support at Home no earlier than July 2027.
If you’re currently receiving CHSP services, you don’t need to do anything. You’ll be contacted when any transition is planned, well in advance.
Residential care changes
The Star Ratings system for aged care homes — rating facilities 1 to 5 stars on quality and safety — became mandatory and public in 2023, before the main reform package. Under the new Act, the underlying quality standards that drive those ratings are now legally enforceable rather than aspirational.
The basic daily fee that everyone in residential care pays (currently around $68/day in 2025–26) continues to be indexed twice yearly in line with the pension. The means-tested care fee and accommodation costs remain subject to Services Australia assessment.
→Costs & Fees guide — what residential care actually costs after means testing.