Insights

Are You Making the Most of Your Aged Care?

From 1 November 2025, important changes are coming to aged care under the new Aged Care Act introduced by the Federal Government.

Are you currently receiving a Home Care Package?

Currently, contributions for Support at Home services for full and part Age Pensioners are based on the existing income test.

From 1 November 2025, this will change. For Age Pension recipients, contributions will be automatically calculated using the income and asset information already held by Services Australia.

If you do not receive the Age Pension, you will need to provide your income and asset details directly to Services Australia.

If you don’t provide this information, you will be charged the maximum contribution rates.

No Worse Off Principle

If you were already receiving or had been approved for a Home Care Package through the National Priority System on or after 12 September, the No Worse Off Principle ensures that your contributions under the new Aged Care Act (starting 1 November 2025) will be the same or lower than what you currently pay.

Changes to your contribution arrangements

With the Support at Home program, you only pay for the services you actually use. Your contribution is worked out as a percentage of the service cost, based on two main factors:

1. Type of Service

• Clinical Support Services (e.g., nursing, physiotherapy): No contribution required.

• Independence Services (e.g., personal care), and items provided through the Assistive Technology and Home Modifications (AT-HM) Scheme: Moderate contribution required.

• Everyday Living Services (e.g., domestic assistance, gardening): Higher contribution required.

2. Your Financial Situation

Your contribution percentage is based on your income and assets:

• Full pensioners will pay the lowest rate.

• Self-funded retirees who are not eligible for a Commonwealth Seniors Health Card will pay the highest rate.

If You’re in Aged Care

Changes to Aged Care Contributions

The way the government checks your finances (means testing) for residential aged care will stay the same, but the types of fees you might pay are changing.

• If you’re already living in an aged care home—or move in permanently—on or before 31 October 2025, your current payment arrangements will stay the same for as long as you remain in care.

• If you move into aged care from 1 November 2025, the way your contributions are calculated will change. Around half of new residents may end up paying more. However, the rules around how your family home and accommodation deposits are treated in the financial assessment will not change.

• Hardship assistance will still be available for people in both residential aged care and the Support at Home program, to make sure everyone can access the care they need.

Contributions Toward Everyday Living Costs

• Basic Daily Fee (BDF): All residents will continue to pay the basic daily fee as part of their contribution to daily living expenses.

• Hotelling Supplement: This supplement helps cover the cost of services such as meals, cleaning, and gardening in aged care homes. Currently, the government fully funds this supplement for all residents. Starting 1 November 2025, residents who are financially able will be asked to contribute toward part or all of the Hotelling Supplement. The government will continue to cover the remaining portion, including the full amount for those who are unable to contribute.

What You’ll Pay for Non-Clinical Care in Aged Care Homes

• The government now pays for all medical care in aged care homes.

• You may need to pay for everyday personal care, like help with showering, moving around, and social activities. This is called the Non-Clinical Care Contribution (NCCC).

• How much you pay depends on your income and assets.

• There’s a daily limit of $101.16 (indexed), so you won’t pay more than that each day.

• There’s also a lifetime limit: once you’ve paid $130,000 (indexed), or after 4 years, you won’t have to pay the NCCC anymore.

• Any similar fees you’ve paid under the Support at Home Program also count toward this lifetime limit.

Optional Extra Services in Aged Care

Some aged care providers offer extra services — like higher quality meals, entertainment, or more personalised care — for an additional cost. This is called the Higher Everyday Living Fee. You can’t be asked to agree to pay this fee until after you’ve moved into permanent care.

However, you may want to think about whether these optional extras are something you’d like to pay for.

Need help understanding how these changes affect you or a loved one? Contact Altitude Adviser today for personalised aged care advice and support.

Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd ABN 95 617 419 959 AFSL 496178

The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.