major Aged Care Changes Roll Out November 1st: What Australians Need to Know
Table of Contents
- 1. major Aged Care Changes Roll Out November 1st: What Australians Need to Know
- 2. Support at Home: A New Era for In-Home Care
- 3. Refundable accommodation Deposits: A Shift in Provider Entitlements
- 4. new Fee Structure: Increased Means Testing and Daily Supplements
- 5. Optional ‘Higher Services’ Offerings
- 6. Understanding Australia’s Aged Care System
- 7. Frequently Asked Questions About The Aged Care Changes
- 8. How does the AN-ACC funding model differ from the previous system, and what is its primary goal?
- 9. navigating New Changes: key Insights into Australia’s November Aged Care Reforms
- 10. Understanding the Core of the November Reforms
- 11. New Funding Model: The Australian National Aged Care Classification (AN-ACC)
- 12. enhanced Quality Standards & Regulation
- 13. Empowering Consumers: Rights and Advocacy
- 14. Practical Tips for Navigating the Changes
- 15. Real-World Example: Impact of AN-ACC on a Regional Facility
Canberra is enacting sweeping transformations to the Australian aged care landscape starting November 1st,2025,designed to reshape how seniors receive care and manage associated costs. These revisions cover home care services, accommodation deposit arrangements, and a revised fee structure, affecting countless Australians and their families.
Support at Home: A New Era for In-Home Care
The existing home care packages are being replaced by a program called Support at Home, aiming to simplify access to care received outside of residential facilities. Under the new system, individuals will pay only for the specific services they utilize, eliminating the current basic daily fee of $65.55, or 85% of the single basic age pension. Though, certain services will now come with additional costs.
Funding for high-level care will be allocated as a quarterly budget of $15,860, while lower tiers will receive about $2,750. Providers are limited to charging 10% of the quarterly budget for administrative and management expenses. Nursing and physiotherapy will remain fully covered under any home care package.
Refundable accommodation Deposits: A Shift in Provider Entitlements
A significant alteration pertains to refundable accommodation deposits, commonly used to secure a place in residential aged care facilities. From November 1st, 2025, providers can retain 2% of the deposit annually, accumulating to a maximum of 10% over five years, in addition to existing daily care fees.
Such as, a $400,000 deposit would allow the provider to retain $8,000 per year for up to five years, totaling $40,000. With the deposit cap having increased to $750,000 earlier in 2025, the maximum retention a provider can legally claim now reaches approximately $75,000.
new Fee Structure: Increased Means Testing and Daily Supplements
Means testing, already a feature of aged care funding, will be expanded from November.A “hotelling” supplement, previously fully government-funded, will now be assessed based on a resident’s financial capacity. This daily fee, capped at $22.15, covers essential everyday living expenses such as meals, cleaning, and laundry.
Moreover, non-clinical care, encompassing services like bathing and mobility assistance, may also be subject to fees depending on individual financial assessments, with a maximum daily charge of $105.30. However, the government will cover the cost of non-clinical care after four years of resident contribution.
Optional ‘Higher Services’ Offerings
Aged care residents will gain the option to subscribe to “higher services” for an additional fee. These services, defined by providers, could include premium offerings like newspaper subscriptions, streaming service access, or regular deliveries. Providers must ensure that the bundled cost of these services does not exceed the price of individual purchases.
Did You Know? The number of individuals on the aged care waiting list reached approximately 122,000 by the end of september, with projections indicating over 300,000 could be waiting by June 2030?
| change Area | Key Adjustment |
|---|---|
| Home Care | Replacement of packages with “Support at Home”, pay-for-service model. |
| Accommodation Deposits | Providers can retain up to 10% of deposits over 5 years. |
| Means testing | Expansion of means testing to include new ‘hotelling’ supplement. |
| Service Fees | Introduction of optional ‘higher services’ with additional fees. |
These changes aim to create a more equitable and lasting aged care system, but concerns remain regarding affordability and access. How will these adjustments impact the quality of care for elderly Australians? And will the increased means testing create further barriers for vulnerable individuals?
Understanding Australia’s Aged Care System
Australia’s aged care system is a complex interplay of government funding, private provision, and individual needs. The system is designed to support older Australians to maintain their independence, health, and wellbeing for as long as possible. With an aging population, the demand for aged care services continues to grow, leading to ongoing debate about funding models, service quality, and access. Recent reports indicate a significant shortfall in available places, exacerbating waiting lists and placing increasing pressure on families and caregivers. The Australian Institute of Health and Welfare (AIHW) provides extensive data and analysis on aged care trends: AIHW – Aged Care in Australia.
Frequently Asked Questions About The Aged Care Changes
Share your thoughts and experiences! How do you think these changes will affect you or your family? Leave a comment below and join the conversation.
How does the AN-ACC funding model differ from the previous system, and what is its primary goal?
Understanding the Core of the November Reforms
Australia’s aged care system is undergoing important transformation, with pivotal changes taking effect this November. These reforms aren’t just tweaks to the system; they represent a fundamental shift towards person-centred care, increased transparency, and greater accountability for aged care providers. The driving force behind these changes is a commitment to delivering high-quality care and dignity to senior Australians.Key areas of focus include revised funding models,strengthened quality standards,and enhanced consumer rights. Understanding these changes is crucial for individuals, families, and providers alike.
New Funding Model: The Australian National Aged Care Classification (AN-ACC)
The most significant change is the full implementation of the Australian National Aged Care Classification (AN-ACC) funding model. Replacing the previous funding system, AN-ACC aims to more accurately reflect the complex care needs of residents.
* How it Works: AN-ACC classifies residents into 13 funding classes based on thier assessed care needs, encompassing cognition, behavior, mobility, and complex health conditions.
* Impact on Providers: Providers receive funding based on the AN-ACC classification of each resident, incentivizing them to provide appropriate care tailored to individual needs. This shift requires accurate assessment and documentation.
* Impact on Residents: Residents benefit from funding directly linked to their care requirements, ensuring resources are allocated where they are most needed. This promotes more individualized care plans and better health outcomes.
* Transition Support: The Department of Health and Aged Care is providing resources and training to assist providers with the transition to AN-ACC.
enhanced Quality Standards & Regulation
The Aged Care Quality Standards remain the cornerstone of quality assurance, but November brings increased scrutiny and enforcement.
* Focus on Consumer Dignity: Standard 1, focusing on consumer dignity and choice, is receiving particular attention. Providers must demonstrate a genuine commitment to respecting residents’ preferences and promoting their autonomy.
* Increased Compliance Checks: The Aged Care Quality and Safety Commission (ACQSC) is ramping up unannounced audits and inspections to ensure compliance with the standards.
* Serious Incident Reporting: The requirements for reporting serious incidents have been strengthened, with a focus on transparency and proactive risk management. This includes incidents relating to abuse, neglect, and substandard care.
* The Serious Incident Response Scheme (SIRS): SIRS continues to be a critical component, requiring providers to report and manage serious incidents effectively.
Empowering Consumers: Rights and Advocacy
The reforms place a stronger emphasis on the rights of aged care recipients and their families.
* My Aged Care Portal: The My Aged care portal (https://www.myagedcare.gov.au/) is the central hub for information and access to aged care services.It’s been updated to provide clearer information about consumer rights and available support.
* Independant Advocacy services: Access to independent advocacy services is being expanded, providing consumers with support to navigate the system and voice their concerns.
* Transparent Information: Providers are required to provide clear and accessible information about their services, including fees, care plans, and quality performance data.
* Family and carer Involvement: The reforms encourage greater involvement of families and carers in care planning and decision-making.
for families and individuals entering or currently within the aged care system, here’s how to prepare:
- Understand Your Rights: Familiarize yourself with the rights outlined in the Aged Care quality Standards and the Charter of Aged care Rights.
- Utilize My Aged Care: Use the My Aged Care portal to research providers,understand eligibility criteria,and access support services.
- Ask Questions: Don’t hesitate to ask providers detailed questions about their services, fees, and quality performance.
- Document Everything: Keep a record of all communication with providers, assessments, and care plans.
- Seek Advocacy Support: If you have concerns or need assistance, contact an independent advocacy service.
Real-World Example: Impact of AN-ACC on a Regional Facility
A regional aged care facility in Victoria successfully transitioned to AN-ACC by investing in comprehensive staff training on accurate assessment procedures. Previously, they struggled to adequately fund residents with complex dementia.With AN-ACC, they were able to secure additional funding, allowing them to hire specialized staff and implement tailored dementia care programs, resulting in improved resident wellbeing and reduced hospital readmissions. This demonstrates the potential of the new funding
