Aged Care Reforms: What’s Changing from 1 November 2025

If you or a loved one is planning for aged care, you’ve probably heard murmurs of reform. The big shifts are coming on 1 November 2025, when a new Aged Care Act kicks in — and it will reshape how fees, services, and regulations are handled.  So, just what is in the aged care reforms?

In this article, we’ll walk through the key changes, how they might affect you (or someone you care for), and what you can start doing now to prepare.

Why the Aged Care Reform Is Happening

– The Aged Care Act 2024 replaces the old 1997 legislation and comes into force on 1 November 2025.
– The reforms aim for a more transparent, sustainable, and fair aged care system, with clearer funding models, updated fee structures, and stronger regulatory oversight.
– Many existing residents will be “grandfathered” into the old system, while new entrants will fall under the new rules.

Key Changes to Expect (From 1 November 2025)

Here are the major shifts you should know:

Area	What’s Changing	Why It Matters / Impact
Fee & Accommodation Arrangements	The number of fee & accommodation arrangements increases: from 2 to 3 in some cases.	It may mean more complexity in which rules apply to different residents.
RAD (Refundable Accommodation Deposit)	Providers can retain up to 2% p.a. for up to 5 years (max 10%) for new residents.	Families will receive a smaller refund — this impacts estate planning.
DAP (Daily Accommodation Payment)	DAPs will now be indexed to inflation (CPI).	Paying via DAP could get more expensive over time.
New Contributions	Two new means-tested contributions: Hotelling Supplement & Non-Clinical Care Contribution.	May raise daily costs for some residents.
Grandfathering	Current residents are protected under existing rules.	Entry date becomes crucial to determine which system applies.
Fee Letters	New fee advice letters outline arrangements clearly.	Families will better understand cost breakdowns upfront.

What’s Staying the Same (or Largely Unchanged)

– The Basic Daily Fee continues.
– Optional extras and lifestyle services will still exist, but with clearer fee disclosure.

Who Is / Isn’t Affected

– People entering care on or after 1 November 2025 will be under the new system.
– Existing residents will largely retain their current fee arrangements.
– Home Care Package holders (as of 12 September 2024) may have transition protections.

What You Should Do Now (October Preparations)

To make sure you’re ready and not caught off guard:
1. Model both old & new scenarios.
2. Time your entry carefully — entry before 1 Nov 2025 might be beneficial.
3. Get financial documents in order.
4. Review RAD vs DAP strategies.
5. Seek advice early to navigate changes.
6. Review current contracts for grandfathering rules.

Final Thoughts

The 1 November 2025 aged care reforms are the biggest shake-up in years. While they bring needed improvements, they also bring complexity.

At Trusted Aged Care Services, we’re already helping Gold Coast families prepare and navigate these changes. Reach out for tailored guidance that protects both financial wellbeing and peace of mind.