New Era in Aged Care: What families and retirees need to know
Australia’s aged care system has entered a period of major transformation, with the commencement of the Aged Care Act and the introduction of the Support at Home program on 1 November 2025. These reforms represent a structural reset designed to improve rights, transparency, safety, and the overall quality of services available to older Australians. Families, retirees, and those planning for later life will notice significant changes in how care is delivered and how decisions about care are made. The reforms also carry important financial and planning implications, including adjustments to budgeting, retirement modelling, and estate preparation.
At the centre of these reforms is a strengthened rights framework. The Aged Care Quality and Safety Commission has described the changes as the most significant in a generation, shifting the system from one heavily criticised by the Royal Commission into Aged Care Quality and Safety towards a model based on dignity, choice, and accountability.
This rights‑based approach is not symbolic. It directly influences how providers must respond to complaints, manage serious incidents, administer medications, and uphold nutrition and safety standards. Households should understand that these rights give them stronger grounds to seek information, question care decisions, and expect transparency from providers.
Another pillar of the reform package is the Support at Home program, which consolidates and re‑designs in‑home care services to better match the needs of older Australians over time. The new system aims to make navigating care simpler and more consistent. Individuals who already receive home care packages may experience administrative updates or provider adjustments, but the underlying intention is clearer access and more tailored support. From a financial perspective, households should factor in co‑payments, care hours, and means assessments when planning for the years ahead. Budgeting for higher‑intensity periods of support, transitional care, or respite after health events is particularly important.
Funding increases form an important part of the government’s strategy. Announced changes include wage boosts for aged care workers, an expansion of home care package availability, and investments in clinical capability. A previous 15 percent wage rise for direct care workers has now been embedded, aiming to stabilise the workforce and improve care quality. Although increased funding may ease access pressures, it does not remove the need for personal financial preparation. Households should review provider fee schedules, understand the structure of out‑of‑pocket charges, and identify how shifts under the Support at Home program may affect future costs. Early engagement with providers can help avoid unexpected expenses. [abc.net.au]
Medication affordability has also improved. From 1 January 2026, the maximum Pharmaceutical Benefits Scheme co‑payment for general patients reduced to AUD 25, while concession cardholders continue to pay AUD 7.70. This change meaningfully lowers the cost burden for older Australians managing chronic conditions, and these savings should be reflected in updated household budgets. Lower medication costs also support the broader policy focus on enabling people to live safely at home for longer, reducing the pressure to transition prematurely to residential care.
These aged care reforms coincide with shifts across the wider healthcare system.
The government has expanded bulk‑billing arrangements and increased the number of Medicare Urgent Care Clinics to reduce strain on emergency departments and improve community access. For older Australians, these additional options enhance the ability to manage deteriorating health episodes promptly, potentially preventing hospital admissions. Families are encouraged to discuss with general practitioners how urgent care clinics can fit into ongoing care plans, particularly for individuals with chronic or complex health needs.
Practical preparation is essential.
Individuals and families should take steps to consolidate important documents and articulate personal preferences, including advance care directives, enduring powers of attorney, medication lists, health summaries, home safety requirements, and preferred providers. Considering different scenarios—low‑level support, moderate assistance, and high‑intensity care—can help households understand the likely financial implications over time. Cost projections should include potential home modifications, temporary increases in care hours, or informal care arrangements provided by family members.
Understanding how to evaluate providers is another key component of navigating the new system. The updated rights‑based framework requires providers to maintain strong quality systems, transparent reporting, and active consumer advisory structures. When comparing providers, households should consider cultural safety, dementia care capability, food and nutrition standards, clinical governance, and staffing levels. Reviewing published compliance information and attending trial visits or introductory consultations can provide clarity about quality and suitability.
Technology will increasingly support aged care services in the coming years. Remote monitoring devices, telehealth consultations, and digital coordination platforms are becoming more common as providers seek to improve efficiency and meet consumer preferences. Some large non‑profit providers have announced plans to deliver a larger share of services online or directly within the home by 2030. Individuals seeking care should ask providers how digital tools are integrated with face‑to‑face services, how personal data is protected, and under what circumstances virtual care is clinically appropriate. When used effectively, these technologies can reduce unnecessary hospital visits and help older Australians remain independent for longer.
Estate planning and family discussions play a crucial role in preparing for long‑term care. As Australians live longer, care decisions may unfold gradually across many years. Conversations about financial priorities, home ownership plans, care preferences, legal authority, and expectations among family members can help avoid confusion or conflict later. Aligning estate plans with the new aged care environment ensures that legal arrangements support decision‑making in times of need. Consideration should also be given to how assets, superannuation income streams, and government entitlements interact with aged care funding pathways.
The new Aged Care Act and the Support at Home program signal a new chapter for aged care in Australia. The reforms offer stronger rights, clearer standards, and improved access, but they also require thoughtful preparation. Households that update documentation, model potential costs, understand available services, and engage proactively with providers will be best positioned to benefit from a system designed to deliver safer, more dignified care.
To learn more about the new aged care fees, view our short educational videos: <Videos on aged care fees>
References:
Department of Health and Aged Care overview of reforms and Support at Home program. https://www.health.gov.au/our-work/aged-care-reforms
Aged Care Quality and Safety Commission statement on the new era of aged care and rights‑based care. https://www.agedcarequality.gov.au/news-publications/news/new-era-aged-care-australia
Aged Care Insite coverage of bulk billing overhaul and sector highlights. https://www.agedcareinsite.com.au/
Aged Care Insite reporting on providers shifting to online and in‑home care by 2030. https://www.agedcareinsite.com.au/