On 1 November 2025, the way fees are worked out for aged care homes changed, and the Support at Home program replaced the Home Care Packages Program.
These changes were part of reforms to make the aged care system more sustainable and equitable.
On this page
The ‘no worse off principle’
The ‘no worse off principle’ protects people already in the aged care system from paying more as a result of the changes.
The ‘no worse off principle’ will apply to your fee arrangements if you:
- were already in a permanent residential aged care home before 1 November 2025
- were receiving a Home Care Package as of 12 September 2024, or
- were approved for a Home Care Package as of 12 September 2024 and were waiting for a package to be allocated (on the National Priority System).
How do the 1 November 2025 fee arrangements affect me?
How it affects you depends on what your current situation is.
Keep your financial details up to date
Remember to keep your personal and financial details up to date with Services Australia or the Department of Veterans’ Affairs (DVA). Under the new Aged Care Act, you are required to report changes to your income or assets within 28 days. This will ensure you are paying the right fees for your circumstances. It also helps prevent you from being charged more than you should.
To update your details, visit the Services Australia website or call DVA on 1800 838 372.
Financial hardship
If you cannot pay your aged care costs, you can ask for financial hardship assistance through Services Australia. If you are eligible, the Australian Government will pay some, or all, of your fees and charges – helping you to get the care you need.
Learn more about financial hardship assistance.
Opting in to the new 1 November 2025 fee arrangements
If you are subject to the 1 July 2014 fee arrangements but have decided to opt in to the new fee arrangements, you need to tell your provider. It’s important to get financial advice before you make this decision; once the change has happened, it can’t be reversed.
You can opt in to the 1 November 2025 fee arrangements at any time, including when moving from one aged care home to another or while receiving care in an aged care home.
To opt in, you need to complete the Continuing residential aged care recipient opting into the new arrangements from 1 November 2025 form (AC022) and have your provider submit it to Services Australia.
If you do not submit this form, you will keep your current fee arrangements. You can still opt in to the new arrangements later, if you decide to.
You should discuss opting in with your aged care provider ahead of time.
Read more about the 1 November 2025 fee arrangements on the aged care homes costs and fees page.