Article Summary:

With significant reforms in Australia’s aged care system set to take effect from 1 July 2025, many Australians are unsure whether to move forward with aged care arrangements for their loved ones now or wait. This article explores the upcoming changes, the financial and care-related implications, and provides guidance for those navigating this emotional and complex decision. 

What changes are coming to aged care in July 2025? 

Australia’s aged care system will undergo another significant overhaul. From 1 July 2025, the current Home Care Packages and Commonwealth Home Support Programme will be replaced by a new program called Support at Home. According to the Australian Government Department of Health and Aged Care, this aims to simplify access, improve service quality, and place the older person at the centre of the care system. 

The Aged Care Quality and Safety Commission will also have strengthened oversight powers, and a new funding model for residential aged care will commence. 

Key reforms include: 
  • A single assessment process: 
    A new unified assessment system will replace multiple current assessments, making it easier for older Australians to access appropriate care faster and with less confusion. 
  • Changes to accommodation payments: 
    The government is reviewing how residents pay for aged care accommodation, with potential changes to the structure and transparency of Refundable Accommodation Deposits (RADs) and Daily Accommodation Payments (DAPs). 
  • Changes to ongoing care fees: 
    The care fee system will be simplified to make the cost of services easier to understand and manage, ensuring fairness and clarity across providers. 
  • Streamlined access to in-home support: 
    The new Support at Home program will offer a more coordinated and individualised approach to care at home, making it easier to receive services based on personal needs. 
  • Stronger regulatory enforcement for providers: 
    The Aged Care Quality and Safety Commission will gain greater authority to monitor, investigate and enforce compliance, ensuring providers deliver high-quality, safe care. 
  • New transparency requirements: 
    Providers will be required to publicly share information like staffing levels, service quality and fees, helping families make more informed decisions about aged care options. 

Should you enter aged care now or wait? 

For families already considering aged care, this is a crucial question. There are pros and cons to both options: 

Acting now may be beneficial if: 

  • Your parent requires urgent care due to deteriorating health 
  • There is availability in a preferred aged care facility 
  • You want certainty around current costs and processes 

Waiting until July 2025 may be wise if: 

  • You want to take advantage of improved home care access 
  • You need more time to plan finances 
  • You’re unsure about care needs and want to explore all options 

The answer depends on your unique situation. Speaking with a financial planner can help you weigh the potential costs under the current and new systems. 

How can you prepare now for a smooth transition? 

Whether you act now or later, there are proactive steps to take: 

  1. Have a conversation with your parents about their preferences. 
  1. Understand the aged care assessment process – find out if a needs assessment has been completed through My Aged Care. 
  1. Start financial planning early. You may not need to sell the family home immediately to pay for care. 
  1. Don’t rush into a facility. Take the time to explore different options and ask about costs, staff ratios, and quality. 

As seen on MyAgedCare.gov.au, early planning gives families the breathing room to make informed, not emotional, decisions. 

FAQs 

What is changing in aged care from 1 July 2025? 

A new Support at Home program, stronger provider regulations, and changes to residential care funding. 

Should we move Mum or Dad into aged care now? 

If health or safety is at risk, consider acting now. Otherwise, explore your options and use this time to prepare. 

Will costs go up after July 2025? 

It depends on the services used and how the government finalises the funding model. Financial advice is recommended. 

How does the aged care assessment process work? 

You or your parent can apply through My Aged Care for an ACAT/ACAS assessment to determine eligibility and level of care needed. 

What are the costs involved in aged care? 

Costs may include a basic daily fee, means-tested fee, and accommodation payments. These vary by income, assets and chosen provider. 

Can the grandchildren live in the house while parents are in care? 

Yes, but it may impact asset tests and Age Pension entitlements, especially if rent is below market value. 

Can we delay aged care entry and still receive support at home? 

Yes. The upcoming Support at Home program will improve access to in-home support, but planning now is still essential. 

How can we afford aged care without selling assets immediately? 

There are multiple funding strategies available including RAD, DAP, or combinations. Financial advice can ease the pressure. 

How can Cosca help you navigate this journey? 

Navigating aged care is emotionally and financially challenging. Whether acting now or waiting for reforms, Cosca’s Personal Wealth advisers can help you understand the landscape and plan ahead. We bring clarity, peace of mind, and tailored support to help you make the right decision for your family. 

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