Aged Care Reforms Explained

Last updated 4 June 2025

New Aged Care Bill passes Parliament

On 25 November 2024, the Australian Parliament passed the Aged Care Bill. The new Aged Care Act was a key recommendation of the Royal Commission into Aged Care Quality and Safety.

The Act will start from 1 November 2025. It will bring a range of improvements for older people with a significant shift to a more compassionate, person-centred system of care. Starting January 2025, Award wage increases for aged care workers takes effect, marking a significant boost for many in the sector.

As an aged care provider, Catholic Healthcare is committed to keeping our residents, clients, families, and carers informed as these significant changes unfold. We are here to guide you through what the new Act means and how it will affect the services you or your loved ones receive.

For more information about the Act, Support at Home and changes to Residential Aged Care, please see below.

Key updates you should know (last updated 4 June 2025)

1. The new Aged Care Act 2024

On 4 June 2025, the Australian Government announced that, following careful consideration, the commencement of the new Aged Care Act including Support at Home has been rescheduled from 1 July 2025 to 1 November 2025. It brings in the most significant changes to the aged care sector since 1997.

The Government noted that this additional time will allow aged care providers, like Catholic Healthcare, to prepare and support clients through the change. It will also give more time for the Government to finalise key operational and digital processes, and for Parliament to consider supporting legislation that will enable the new Act to operate effectively.

Catholic Healthcare is prepared for these changes and is available if you have any questions. If you need to speak to us more about reforms, you can also reach out to us via our dedicated reforms email: reform@chcs.com.au.

Key points include:

A rights based Aged Care Act for older people
A statement of rights for older people Statement of Rights | Aged Care Quality and Safety Commission
Strengthened standards governing the provision of care and services
New complaints arrangements
A new Support at Home program for those accessing funded aged care in the community
Changes to funding for some older persons particularly those starting to access care and services after 1 November 2025
Providers will be under greater obligations and regulators will have greater powers
The ability for older persons to nominate to Government one or more persons to support them

2. New Support at Home program

From 1 November 2025, the Support at Home program will replace Home Care Packages and Short-Term Restorative Care.

Key features include:

An increase from four to eight levels of funding, ranging from $11,000 to $78,000 per year.
Extended restorative care services, from 8 weeks to 12 weeks.
Quarterly funding and budgets available for three categories of services: clinical care, independence (e.g., help with showering, getting dressed or taking medication), and everyday living (e.g., cleaning, gardening meal preparation).
Home modifications support of up to $15,000.
Assistive technology funding of up to $15,000 and faster access to assistive technology through a new equipment loan scheme.
IT Transition Support Grant funding will be available for in-home aged care providers to support IT system transitions, starting January 2025.
Support at Home Pricing Guidance published, starting March 2025.
A webinar on 'Support at Home program update for older people, families and carers' was held on 3 April 2025. The webinar recording and slides are now published here.

Those clients already on a Home Care Package or in the national queue for a Home Care Package as of 12 September 2024 will be protected by ‘no worse off’ provisions. This means they will not need to be financially disadvantaged by the change. Persons entering the queue after 12 September 2024 will be subject to means testing which will determine any contributions they may need to make.

The Support at Home program is designed to help more than 1.4 million older Australians stay independent at home for longer.

If you are an existing Home Care Package customer, go to our Support at Home page for clients here.

3. Changes to residential aged care

For those entering residential aged care after 1 January 2025, there are also significant changes including:

Changes in the way places are allocated
New contributions for those who have the means to afford them
Room prices up to $750,000 no longer require Government approval
Stronger controls around the offering of enhanced services
National Redress Scheme payments will be exempt from the residential care asset test.

These updates will ensure continued quality improvements and growth in aged care homes to meet future demands.

4. Strengthened Aged Care Quality Standards

The strengthened Aged Care Quality Standards enhance safety, dignity, and quality of life for aged care recipients. They focus on seven key areas: the person, the organisation, care and services, the environment, clinical care, food and nutrition, and the residential community. These Standards ensure older Australians receive care with dignity and respect, supported by a robust regulatory framework that promotes transparency and accountability.

5. Support for Aboriginal and Torres Strait Islander Elders

As part of the national aged care reforms, the Australian Government has introduced the Elder Care Support (ECS) Program in partnership with the National Aboriginal Community Controlled Health Organisation (NACCHO). This program is designed to support older Aboriginal and Torres Strait Islander people, their families, and carers in navigating the aged care system. ECS facilitators are being deployed across urban, regional, and remote communities to provide culturally safe guidance, help individuals access services, and advocate for care that respects cultural preferences. The program forms part of the broader aged care reform agenda and is being rolled out in phases from 2023 to 2026.

What happens next?

If you're currently a Home Care Package client, you will automatically transition to the new Support at Home program on 1 November 2025.
For our residential aged care clients, the new contribution rules will only apply to new entrants from 1 November 2025.

Get more information

For more information or to discuss your situation, please contact us to stay informed as these reforms roll out.

You can also click here to follow our Facebook page, where we will be posting the latest updates with information linked on this page.

You can find the history of the aged care reform changes here.

The Department of Health and Aged Care has extensive information about the new Aged Care Act available via their website https://www.health.gov.au/our-work/aged-care-act