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.


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A special thanks to our contributors

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Caroline Egan

DCM Media, agedcare101

Caroline has a wealth of experience writing within the retirement and aged care sector and is a contributing journalist for the Villages.com.au and agedcare101 blog and accompanying newsletters.

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Ian Horswill

Journalist

Ian is a journalist, writer and sub-editor for the aged care sector, working at The DCM Group. He writes for The Weekly Source, agedcare101, villages.com.au and the DCM Institute fortnightly newsletter Friday. Ian is in daily contact with CEOs of retirement living, land lease and the aged care operations and makes a new contact every week. He investigates media releases, LinkedIn and Facebook for a good source for ideas for stories.

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Lauren Broomham

Retirement and Aged Care Journalist

Lauren is a journalist for villages.com.au, agedcare101 and The Donaldson Sisters. Growing up in a big family in small town communities, she has always had a love for the written word, joining her local library at the age of six months. With over eight years' experience in writing and editing, she is a keen follower of news and current affairs with a nose for a good story.

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Jill Donaldson

Physiotherapist

Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

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Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

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Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.