Aged Care Reforms Update

Australia’s aged care system is going through significant changes to make life better for older Australians. These changes come in effect 1 November 2025. 

The old Aged Care Act from 1997 is being replaced with a new Act that puts older people at the centre of everything. The new Aged Care Act:

•  Makes the rights of older people the foundation of aged care.
•  Sets clearer responsibilities for aged care providers.
•  Establishes better oversight of the whole system.

The Single Assessment Service commenced in 2024 to simplify the My Aged Care entry point. This includes an improved assessment services for First Nations people.

Aboriginal and Torres Strait Islander people and people experiencing or at risk of homelessness are eligible to access aged care services from the age of 50+

For the first time, the Commonwealth Home Support Program (CHSP) is covered by the Act and will therefore be assessed against the quality standards.

Statement of Rights will replace the Charter of Aged Care Rights.

Stronger Whistleblower protection for participants and /or their representatives and aged care workers when making complaints.

Safeguards around decision-making: Registered Supports will replace regular and authorised representatives in My Aged Care

New Funding arrangements: changes in aged care fees and charges for Support at Home services.

Support at Home will replace Home Care Packages and the Short Term Restorative Care Program. CHSP will continue to operate and join Support at Home no sooner than July 2027.

The quality standards that providers must meet have also been reviewed and enhanced. The new standards prioritise the rights, needs and wellbeing of the person receiving care.

• Are more detailed about what good care looks like.
• Aim to empower older Australians with greater choice and control over their care.
• Focus more on outcomes for older people.
• Provide clearer expectations for aged care providers.
• Create a framework for measuring and assessing the quality of services.

Support at Home is a new in-home aged care program that will commence on 1 November 2025. It will replace the Home Care Packages (HCP) Program and Short-Term Restorative Care (STRC) Programme.

The Support at Home program replaces Home Care Packages with a more flexible, needs-based model featuring eight classifications with funding up to $78,000 annually.

Changes include:

• • Quarterly budgets that can be reset every three months based on changing needs. Unspent funds at the end of each quarter will now be limited to $1,000 or 10% of the funding (whichever is higher.) This makes it important to utilise allocated funding to receive the full range of care benefits available.

Participants who are currently part of the Home Care Package program will maintain their funding levels, and any unspent funds, with a “no worse off” principle for personal contributions. These participants are known as “grandfathered” clients and were either receiving home care package services, on the national Priority System or assessed as eligible prior to 12th September 2024.

Co-contributions based on capacity and services used. Contributions for services will be determined by category type and will be determined through means testing by Services Australia.

• Clinical services: there will be no contributions for services in the Clinical Category
• Independence: 5% – 50% of the service cost
• Everyday Living: 17.5% – 80% of the service cost

Sacred Heart Local will be able to support participants experiencing financial hardship to apply for financially disadvantaged status to determine if they are eligible for fee reduction or fee waiver.

Separate funding for assistive technology and home modifications: dedicated funding for assistive technology and home modifications that will be separate from funding for ongoing services.

Support at Home supports will focus on Welllness and Reablement with the aim to increase and maintain independence. Changes include:

• The program introduces three categories of care where service types are allocated: Clinical Care, Independence Support, and Everyday Living.
• There is a defined Service List that determines what can be funded through the new program
• There will be separate funding for Short Term Restorative Care, End of Life Care, and Assistive Technology and Home Modifications.

Simplified assessment process: A new Single Assessment Process simplifies and streamlines the way older Australians are assessed for care. This reduces duplication, ensures a more consistent and person-centred experience making it easier to access aged care services.

Approvals for Care and Services: Support at Home participants will receive a Notice of Decision and a Support plan from their aged care assessor that lists the type of funded care that they are eligible to receive.

Service categories:

• Clinical Care (such as nursing and physiotherapy).
• Independence Support (like help with personal care, daily activities and social connection).
• Everyday Living Assistance (including domestic assistance, gardening and meals).

Short Term Services: Restorative Care and End of Life Care Pathways will be available for eligible clients.

Scared Heart Mission offers a dedicated and experienced team that can help guide you through the aged care reforms and changes to the service system.

We are committed to ensuring smooth as possible transition to the changes and have been working hard in the background to make this happen.

Our trusted staff will continue to deliver care and supports to all of our participants to make sure we continue to deliver quality care and support.