What the aged care grandfathering rules mean for you
01/08/2025
With the new Aged Care Act now set to begin on Saturday, 1 November, the Australian Government has confirmed grandfathering arrangements to protect existing aged care residents and home care recipients from unexpected changes.
What does “grandfathering” mean?
Grandfathering (or being “grandfathered in”) means that existing rules continue to apply to people who are already receiving care, while new rules will apply only to those entering care after 1 November.
Residential aged care: What stays the same?
If you or a loved one is already living in residential aged care before 1 November:
Your fees and costs won’t change. The basic daily fee and means-tested care fee will continue as outlined in your existing agreement.
Accommodation costs will still depend on the government’s maximum permissible interest rate (MPIR).
If you leave your aged care home but move into a new one within 28 days, you’ll still be protected from changes to your fees, as long as you haven’t opted out of your current fee arrangements.
Home care: What’s changing?
From 1 November, the Support at Home program will replace the Home Care Packages Program and the Short-Term Restorative Care Programme.
However, if you or a loved one already have a Home Care Package, or have been assessed as eligible before 12 September 2024:
· Your package will automatically convert to the Support at Home program on 1 November 2025.
· You will receive funding equivalent to your current package level, aligned with the new program rules.
You won’t be worse off:
Full pensioners paying no fees now will never pay fees under Support at Home.
If you’re currently paying fees, you’ll pay the same or less under the new system.
Unspent funds from your Home Care Package will roll over to your new Support at Home budget.
If you currently pay an Income Tested Care Fee (ITCF), you’ll pay a similar contribution fee under Support at Home. If you don’t currently pay an ITCF, you won’t pay a contribution.
What about the Commonwealth Home Support Programme (CHSP)?
The CHSP will remain unchanged until at least 1 July 2027. If you or a loved one are receiving CHSP services, nothing changes for now.
The Department of Health, Disability and Ageing has also released a helpful video, “Support at Home program – contributions,” which explains the new funding arrangements in more detail.