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.
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).
Support at Home costs
Support at Home contributions are limited for people covered by the ‘no worse off principle’.
If you were receiving or had an approval for a Home Care Package on 12 September 2024, the ‘no worse off principle’ applies to you. This means you will make the same or lower contributions for Support at Home as you would under the Home Care Packages program. This includes if you are reassessed into a higher Support at Home classification later.
If you were approved for a Home Care Package between 13 September 2024 and 31 October 2025, you will pay the standard Support at Home contributions. This applies even if you started receiving services before 31 October 2025.
Learn more about Support at Home costs and contributions.
Aged care home costs
If you moved into an aged care home between 1 July 2014 and 31 October 2025, or have previously opted into the 1 July 2014 fee arrangements, you will stay under your current fee arrangements until you leave care or opt in to the new 1 November 2025 fee arrangements.
The fees you may pay under the 1 July 2014 arrangements are:
- basic daily fee
- means tested care fee
- accommodation payment or accommodation contribution
- additional service fees
- extra service fee.
Additional and extra service fees will stay the same for up to 12 months from 31 October 2025. During this period, you can move to the higher everyday living fee, at a time agreed with your provider, if you wish to continue to receive additional higher quality services. The additional and extra service agreements will lapse after 31 October 2026.
If you moved into an aged care home between 1 July 2014 and 31 October 2025 or have previously opted into the 1 July 2014 fee arrangements, the accommodation reforms (RAD/RAC retentions and DAP indexation) will only apply to you if you:
- move to a new service after opting into the 1 November 2025 fee arrangements, or
- opt into the 1 November 2025 fee arrangements as part of a move to a new service, or
- exit care for more than 28 days (not including approved leave).
Learn more about aged care home costs and fees.
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.
Opting in to the new 1 November 2025 fee arrangements
If you are subject to the 1 July 2014 fee arrangements for an aged care home, you can keep your current arrangements or opt in to the 1 November 2025 fee arrangements. It is your choice if you want to opt in.
If you decide 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. Residents may pay more under the new arrangements.
Read about how your fees may change under the 1 November 2025 arrangements in the fact sheet New Arrangements for Aged Care from 1 November 2025 – Residential Care. There may also be impacts for your accommodation costs if you move aged care homes.
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.
Financial hardship
If you can’t pay your aged care costs, you can ask for help 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.