Understanding Aged Care Reforms

Support at Home & Aged Care Updates

Information current as of May 2025

The Royal Commission into Aged Care (2018–2021) found that Australia’s aged care system needed serious improvement. The government is now adopting 126 of the 148 recommendations made, with a focus on quality, safety, and respect for older Australians. Most reforms will roll out between 2025 and 2027.

New Aged Care Act
Effective 1 July 2025

The current Aged Care Act is being replaced with a new law that puts older people front and centre. It’s all about ensuring your rights, dignity and voice are protected.

Key rights include:

  • Being treated with respect and independence

  • Your privacy is protected

  • Receiving safe, quality care

  • The right to speak up without fear of punishment

Strengthened Quality Standards
New version from 1 July 2025

Quality Standards are the rules that aged care providers must follow. These are being updated to make them:

  • Easier to understand

  • More focused on your needs

  • Aligned with the new Aged Care Act

The goal is to ensure you feel safe, supported and heard - no matter who is providing your care.

Whistleblower Protections
Effective 1 July 2025

If someone witnesses unsafe or poor-quality care and reports it, they’ll be protected. New laws aim to reduce the fear of retaliation, improve confidentiality and offer multiple ways to report concerns

Supported Decision-Making
Effective 1 July 2025

You can now formally nominate one or more people to support you in making decisions about your care and services. These supporters:

  • Help you understand your options

  • Respect your choices

  • Promote your wellbeing

Note: This is different from a Power of Attorney.

A New Way to Handle Complaints

A new independent Complaints Commissioner will oversee how complaints are managed across the aged care system - making the process clearer, more transparent and fairer for everyone.

Support at Home Funding Model

Replaces Home Care Packages from 1 July 2025

The way in-home aged care is funded and delivered is changing. The Support at Home program will replace the current Home Care Package system.

What’s changing:

  • New care levels from 1 to 8 (instead of 4)
  • Up to $77,000 annually available depending on your needs

  • A ‘no worse off’ guarantee for people receiving care before 12 September 2024

  • Budgets reviewed quarterly, with a savings cap of $1,000 or 10% per quarter

Income Testing:

  • From 1 July 2025, all new clients will be income tested

  • Pensioners will pay less

  • Self-funded retirees may contribute more (from 5% to 80%)

Privately funded home care: If you’d prefer more flexibility or want to avoid income testing altogether, there’s also the option to explore privately funded home care. This can offer greater choice, more control over your services and access to care without the wait.

What’s Covered Under Support at Home?

Under Support at Home, government funding can go toward:

  • Care services

  • Assistive technology (e.g. mobility aids)

  • Home modifications

  • End-of-life and restorative care

Other key changes:
  • Package management fees are now included in provider pricing

  • Care management fees are capped at 10% of your budget

  • Clearer guidelines on what’s included and excluded

FAQs

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Will this effect CHSP (Commonwealth Home Support Programme)?

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What happens if I’m already receiving a Home Care Package before 1 July 2025?

If you have questions or concerns, you can contact:

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