What’s changing in aged care in 2025?

Key points:

• The aged care sector expects significant changes to occur in 2025 and the Aged Care Guide is here to help you understand how you may be affected by the upcoming changes
• The maximum room cost for residential aged care has increased, allowing residential care providers to charge up to $750,000 dollars without approval from the Independent Health and Aged Care Pricing Authority
• Other changes are expected when the new Aged Care Act comes into force on July 1, 2025, including the introduction of the Support at Home program

Many older Australians will be aware that the new Aged Care Act is expected to commence in July 2025. The Aged Care Guide team has compiled a list of what to expect this year and what changes are happening when. 

In this guide, we will cover the changes including aged care room prices, the Support at Home program, residential care changes, the First Nations Aged Care Commissioner, what’s still to come and what to do now.

Changes to aged care room prices

The cost of a room in an aged care facility can vary between providers and rooms with certain features. 

However, starting on January 1, 2025, providers can charge up to $750,000 dollars for a room in an aged care home without getting approval from the Independent Health and Aged Care Pricing Authority.

This does not mean that an aged care provider will charge $750,000 dollars for a single room in an aged care home, but, it means that older people looking for an aged care home may pay more for a room now than last year.

In 2024, providers needed approval from the Independent Health and Aged Care Pricing Authority to charge more than $550,000 dollars for a room in an aged care home.

However, if you or a loved one is currently living in an aged care facility, the cost of your room will not change. These changes to aged care are for new clients moving into aged care homes. 

The Aged Care Guide provides search options to help you choose the most suitable aged care provider for you or your loved one. 

With the Aged Care Guide, you can search for aged care homes in locations across Australia with search filters, such as 24/7 registered nursing, secure dementia beds and rooms with ensuites.

Support at Home

From July 1, 2025, the current Home Care Packages and Short-Term Restorative Care Programme will be replaced by a combined Support at Home program.

In December 2024, the Australian Government announced an additional $440 million dollars would be invested into the new Support at Home package on top of the previously established $4.3 billion dollars in September 2024. 

Assistant Minister for Health and Aged Care Ged Kearney emphasised the impact of the Australian Government’s investment in the ageing population.

“Older Australians made this country what it is and it’s our turn to give back to them,” she said.

“A home is so much more than just a comfortable space — it’s memories, independence, security, identity. Older Australians deserve to stay in their homes for as long as possible.”

The Aged Care Guide lists many aged care providers, making it easier for you to find support in your area to meet your needs, including dementia care, personal care and shopping assistance. 

Residential care

The new contributions and accommodation arrangements only apply to older Australians who enter residential aged care from July 1, 2025. 

This means that if you are already in residential care or will enter before June 30, 2025, you will pay for residential care based on your current arrangements until you leave care.

Read more about the impact of residential care changes on older Australians in this Aged Care Guide article: New Aged Care Act: what’s happening and when?

First Nations Aged Care Commissioner

Andrea Kelly was appointed as the interim First Nations Aged Care Commissioner in January 2024, however, the permanent commissioner position is yet to be filled as of January 2025. 

The commissioner’s role is to ensure that aged care practices are culturally safe for First Nations Australians, which will contribute to ‘closing the gap.’

What’s still to come after 2025?

By July 1, 2027, the current Commonwealth Home Support Programme will also be moved into the updated Support at Home program.

Approximately 4.2 million Australians are aged 65 years or older, with projections suggesting that Australia’s ageing population is expected to grow even further.

What do I do now?

Changes have already been made in preparation for the new Aged Care Act as a streamlined assessment process for older Australians was brought into effect on July 1, 2024, called the Single Assessment System. 

The role of Regional Assessment Services and Aged Care Assessment Teams now falls under the Single Assessment System. 

From December 9, 2024, assessment organisations are funded to conduct assessments in the nationwide Single Assessment System for people seeking residential care, respite care or in-home support, as well as residential care funding assessments. 

Changes can sometimes seem overwhelming, but they don’t have to be. Changes to the assessment system cut out varying assessment pathways, making the process more streamlined. It also means that if your needs change and you require a different service, you won’t have to explain your entire situation again. 

If you or a loved one is looking to get aged care support, you’ll need to be assessed to determine the level of support required to meet your needs. 

What are your thoughts on the changes in the new Aged Care Act?

Let the team at Aged Care Guide know on social media. 

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Relevant content:

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What is advance care planning?

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