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Considering residential aged care?

What you need to know about the 2025 aged care reforms

Moving into residential aged care is a significant decision, and with the biggest aged care reforms in 30 years coming into effect from 1 July 2025, it’s important to understand these changes.

At St Agnes’ Care and Lifestyle, we’re here to help you navigate these updates with confidence. Our goal is to provide a safe, supportive, and comfortable environment where you or your loved one can live well with the right care in place.

Whether you’re planning the move soon or just starting to explore your options, we’re here to offer clarity and peace of mind.

Also considering home care? Learn about the new Support at Home program here.

Key changes to residential aged care from 1 July 2025

From 1 July 2025, several important changes to aged care will come into effect that will impact residential aged care costs, the allocation of placements, and the resident experience. Understanding these changes will help you make an informed decision about your care.

1. Higher maximum accommodation costs

The maximum price for residential aged care accommodation will rise to $750,000 (from $550,000). If you’re thinking about residential aged care, applying before July could help you secure current pricing.

2. New Non-Clinical Care Contribution (NCCC)

A new daily charge of up to $101.16 will be introduced to cover non-clinical services. If you enter care before July, you may be exempt from this additional fee.

3. Updated Quality and Safety Standards

The updated standards will enhance care, safety, and accountability to ensure you receive the highest level of care. These changes focus on improving service quality and providing greater peace of mind.

4. Retention fee on Refundable Accommodation Deposits (RADs)

A 2% annual fee (up to a maximum of 10%) will be deducted from your RAD before it is refunded when you leave care. Applying before July may help you avoid this change and retain more of your deposit.

5. Changes to aged care placement allocations

A more centralised and transparent placement process will match residents to providers based on their needs. Applying before July may give you more certainty if you have a preferred provider in mind.

Frequently Asked Questions (FAQs)

Applying for residential aged care

How do I apply for residential aged care under the new system?

You will apply through My Aged Care, just as you would now. However, from 1 July 2025, instead of providers holding places, these will be allocated directly to individuals based on their care needs, allowing you more options and flexibility.

What happens if I’ve already applied but haven’t received a placement by 1 July 2025?

If you have already applied for aged care and are waiting for placement, your application will proceed as normal, but places will now be allocated directly to you based on your care needs. You’ll be informed about available options and can choose the best fit for you.

Will respite care still be available after the changes?

Yes, respite care will continue to be available for short-term stays in residential aged care. The changes primarily affect permanent placements, not respite care.

Can I choose a different facility under the new system?

Yes, you will be able to choose a facility that best matches your needs once a placement is available, subject to availability and your care requirements.

Costs and financial contributions

How are the costs of residential aged care determined?

The costs depend on your income and assets. The government will continue to provide subsidies, and a financial assessment will determine how much you’ll need to contribute toward your care.

Will I have to pay more under the new system?

There may be changes to the way fees are structured from 1 July 2025. The government has indicated that about half of new residents will not pay more than they do now. However, people with higher income and assets may be required to contribute more toward their care.

What if I cannot afford residential aged care?

There are financial hardship provisions available for people who cannot afford residential aged care. You may also be eligible for government support to assist with costs. It is recommended you seek financial advice to better understand your options.

Impact on current residential aged care residents

How will these changes affect me if I’m already living in a residential aged care facility?

These changes will not affect your existing care arrangements or fees if you are in care prior to 1 July 2025. Your current fees and care plans will remain the same.

Can I transfer to a different facility after the changes take effect?

Yes, from 1 July 2025, if you wish to transfer to another facility, you will have the opportunity to choose from available places based on your care needs, subject to availability.

Will these changes improve the quality of my care?

Yes, the reforms include new Quality and Safety Standards, which are designed to improve service quality and provide greater peace of mind to residents and families by enhancing provider accountability.

Ready to take the next step?

The upcoming changes to aged care may make now the perfect time to enter residential aged care, especially if you’re looking to avoid higher accommodation prices and new fees. We encourage you to explore how these changes could affect you.

To apply or learn more about how we can help you navigate these changes, call our friendly team on (02) 5525 3600.

Donnelly House

Information Support Centre

We are here to help you with all the information you need and what the best care options are for you.
Make an appointment by calling (02) 5525 3600 or visit us at 150-152 Horton Street, Port Macquarie.

Who is St Agnes’ Care & Lifestyle?

St Agnes’ Care & Lifestyle offers permanent Residential Aged Care accommodation with 24-hour care support by qualified and experienced care teams.

Creating a home-like environment, St Agnes’ Care & Lifestyle provide a range of generous rooms which are private, contemporary and comfortable. We value the individual and your specific health and lifestyle wishes.

St Agnes’ Care & Lifestyle delivers specialist care to accommodate a large range of needs including respite care, permanent care, dementia specific care and palliative care. Support services are Federal Government approved.