Australia’s aged care system has undergone significant reform in recent years following the findings of the Royal Commission into Aged Care Quality and Safety. In June 2025, I wrote of how aged care services can support Australians who have come to a point in their lives when health conditions can undermine their ability to remain in their own home. Since then, the Australian Government has introduced a new legislative framework and redesigned several programs with the aim of improving quality, transparency and access to services for older Australians.
Many of these changes came into effect from 1 November 2025, marking one of the most substantial updates to the aged care system in decades.
A New Aged Care Act
A key component of the reforms is the introduction of the Aged Care Act 2024, which replaced the previous legislation governing the sector.
The new Act places a stronger emphasis on the rights of older Australians, including dignity, choice and control over the care they receive. It establishes clearer responsibilities for aged care providers and strengthens regulatory oversight to ensure services meet higher standards of quality and safety.
The legislation also introduces a new rights-based framework that requires providers to demonstrate how they are delivering care in line with these principles.
A New “Support at Home” Program
Another major change is the introduction of the Support at Home program, which replaced the previous Home Care Packages and Short-Term Restorative Care programs from November 2025.
The new program is designed to make in-home care simpler and more flexible, helping older Australians remain in their homes and communities for longer.
Key features include:
- A single national home care program replacing multiple schemes
- Eight funding classifications to better match support with individual needs
- Expanded access to services such as equipment, home modifications and clinical care
- Greater flexibility in tailoring services to individual circumstances.
The government has also indicated that the Commonwealth Home Support Programme will eventually transition into this new framework in the coming years.
Changes to Costs and Contributions
Under the new system, individuals receiving home care may be required to contribute to some services, while certain clinical or essential services remain government funded.
Providers are currently able to set their own service prices, but they must disclose these costs transparently. Government price caps are expected to apply from July 2026 to help manage affordability.
Stronger Regulation and Accountability
The reforms also introduce:
- Strengthened Aged Care Quality Standards
- A new Aged Care Code of Conduct
- Enhanced oversight from the Aged Care Quality and Safety Commission
These measures are designed to improve accountability and ensure that providers deliver safe, high-quality care.
What This Means for Australians
For many families, the changes should make the aged care system easier to navigate and more focused on individual needs. The reforms aim to:
- Support more people to age at home
- Improve quality and safety standards
- Increase transparency around fees and services
- Strengthen the rights of older Australians
However, as with any major reform, there will likely be an adjustment period as providers and participants transition to the new system.
Planning for Future Care
As Australians live longer, planning for future care needs is becoming an increasingly important part of financial planning.
Understanding how the aged care system works — including potential costs, eligibility and available support — can help individuals and families make more informed decisions about retirement, housing and long-term care arrangements.
Given the complexity of aged care services and funding, early planning is essential. At Elixir Private Wealth, we can provide support and guidance to assist you in making an informed decision to prepare for future aged care considerations.