What’s Changed
Australia’s aged care system underwent its biggest overhaul in a generation in late 2025. If you’re confused, here’s what changed, what’s still coming, and what it actually means for you.
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The 30-second version
A new Aged Care Act started on 1 November 2025. It puts older people’s rights at the centre of the system. Support at Home replaced Home Care Packages with 8 funding levels. Price caps arrive July 2026. The system is still settling in.
The three big changes
1. A new Aged Care Act
The old Aged Care Act (from 1997) has been replaced by the Aged Care Act 2024, which started on 1 November 2025. The key difference? The new Act is built around the rights of older people, not the processes of the system.
It includes an enforceable Statement of Rights — meaning providers are legally required to uphold your rights to safe care, dignity, autonomy, and making your own decisions. There’s also a new independent Complaints Commissioner for when things go wrong.
2. Support at Home replaced Home Care Packages
The biggest practical change for most people. The old Home Care Packages (4 levels, annual budgets, long wait times) have been replaced by Support at Home (8 classifications, quarterly budgets, capped care management fees). Our Support at Home page explains this in detail.
3. New fee and pricing rules
The way fees work has changed for both home care and residential care. There are new means-tested contribution rules, and from 1 July 2026, price caps will apply to Support at Home services. Providers now have to publish their prices, making it easier to compare. Our Costs & Fees page covers the details.
Timeline of changes
Here’s what’s already happened and what’s still coming.
25 November 2024
New Aged Care Act passed Parliament Done
The Aged Care Act 2024 was passed after years of development following the Royal Commission into Aged Care.
1 July 2025
Room price cap increased Done
The maximum advertised room price in aged care homes was indexed to $758,627. Providers can now retain up to 2% of the Refundable Accommodation Deposit per year (max 5 years).
1 November 2025
New Aged Care Act commenced Done
The new Act officially started, bringing in the Statement of Rights, the new Complaints Commissioner, and stronger provider obligations.
1 November 2025
Support at Home launched Done
Replaced Home Care Packages and Short-Term Restorative Care. Eight new funding classifications. Quarterly budgets. Care management capped at 10%.
1 November 2025
New fee arrangements started Done
New means-tested contribution rules for Support at Home participants. “No worse off” protections for people assessed before 12 September 2024.
February 2026
Senate committee examined readiness Done
A Senate committee reviewed the readiness of the Support at Home program. The Inspector General of Aged Care noted the transition “lacks clarity.” The Independent Assessment Tool (IAT) used for assessments has faced criticism from clinicians.
1 July 2026 — ~3 months away
Price caps on Support at Home services Coming
Government-set price caps will apply, meaning providers can’t charge above a maximum for each service type. Until then, providers set their own prices.
⚠ Action now: Ask your provider for a full service price breakdown before July. Once caps are published you can check if you’re being overcharged — and switch providers if so. Your funding follows you.
31 October 2026
Old “additional” and “extra service” agreements end Coming
In residential care, existing additional and extra service agreements will cease. These are being replaced by the optional higher everyday living fee.
No earlier than 1 July 2027
CHSP transitions to Support at Home Coming
The Commonwealth Home Support Programme (basic entry-level services) will merge into Support at Home. If you’re on CHSP, nothing changes until then.
What hasn’t changed
With all this change, it’s worth noting what stays the same.
My Aged Care is still your starting point. Call 1800 200 422 or visit their website. The entry point into the system hasn’t changed.
You still choose your provider. Nobody assigns you a provider. You compare, you choose, you can change if you’re not happy.
Nobody is refused care because of money. The system is means-tested, but there are hardship provisions. Financial difficulty should never stop anyone from accessing care.
The 1800 200 422 phone line still works the same way — Monday to Friday 8am–8pm, Saturday 10am–2pm.
The honest take
These reforms are well-intentioned. They respond to serious problems identified by the Royal Commission into Aged Care. The new Aged Care Act genuinely strengthens rights and protections.
But the transition hasn’t been seamless. Some families have found the new system confusing. The assessment tool has been criticised. The readiness of some providers has been questioned. This is worth acknowledging honestly rather than pretending everything is perfect.
If you’re finding the process difficult, you’re not doing anything wrong. The system is still settling in. Get support from OPAN (1800 700 600) if you need help navigating it.
⚠️ This page reflects reforms as of March 2026. Aged care policy continues to evolve. We update this page when significant changes occur, but always confirm details at myagedcare.gov.au or health.gov.au.