From November 1, Australia\u2019s aged care system enters a new phase \u2014 one that could bring clarity for some and financial strain for others. For older Australians receiving care at home, the shift to the new Support at Home model introduces a major change: more user-pays costs, with providers setting their own prices until 2026.<\/p>\n
That\u2019s daunting enough if you\u2019re living on a fixed income. But what if you\u2019re broke \u2014 or close to it?<\/p>\n
Many families are only just coping with current home care fees, let alone new contributions that aren\u2019t yet fully transparent. The good news? If you already have a Home Care Package or were approved before 12 September 2024, you\u2019re protected under a \u201cno worse off\u201d rule. But what that means \u2014 and what to do if you can\u2019t afford rising care costs \u2014 isn\u2019t always clear.<\/p>\n
This article breaks it down:<\/p>\n
Because navigating aged care shouldn\u2019t be another full-time job.<\/p>\n
November 1 marks the start of the biggest funding shift in aged care in over a decade. The reforms, part of the Aged Care Act 2024, introduce a new national system called Support at Home, replacing the existing Home Care Packages. This shift is designed to streamline services \u2014 but it also alters how much people may have to pay.<\/p>\n
Under the new model, all in-home care recipients will pay what\u2019s called a participant contribution. Unlike the current capped fees, these charges are based on provider-set prices \u2014 meaning costs could vary between providers until the government introduces price regulation in July 2026.<\/p>\n
While many care recipients already pay something towards services, this introduces a more market-driven approach. There\u2019s also less direct control from government over what\u2019s charged in the interim.<\/p>\n
If you or a loved one enters residential aged care after 1 November, two new daily fees will apply:<\/p>\n
These replace the current Means-Tested Care Fee for new residents. Together, they could amount to over $100 per day. While a lifetime cap of around $130,000 applies, the day-to-day impact may be significant \u2014 especially for those with limited assets.<\/p>\n
For now, providers do. While the government plans to regulate home care prices by July 2026, we\u2019re entering an 18\u201324 month window where costs could increase in unpredictable ways.<\/p>\n
In short:<\/p>\n
One of the most reassuring parts of the aged care reforms is the government\u2019s promise: no one currently receiving care will be financially worse off.<\/p>\n
But what does that actually mean \u2014 and who does it apply to?<\/p>\n
You\u2019re protected if:<\/p>\n
For residential care, protections apply if:<\/p>\n
\u00a0This isn\u2019t something you need to apply for \u2014 eligibility is automatic. Your care plan will be reviewed and transitioned, but your new costs under Support at Home will be equal to or lower than what you were paying before.<\/strong><\/p>\n <\/p>\n Let\u2019s say you\u2019re currently paying a basic daily fee and an income-tested fee under your Home Care Package. Under the new system, your provider may set higher prices \u2014 but you will not be required to pay more than your current rate.<\/p>\n The government is essentially covering the gap behind the scenes to ensure you\u2019re not hit with a cost increase simply because of the policy shift.<\/p>\n Similarly, if you\u2019re already living in residential care, you won\u2019t be moved to the new hotel-style fees. You\u2019ll continue paying under the Means-Tested Care Fee system.<\/p>\n If you:<\/p>\n \u2026you\u2019ll be subject to the new fee structures, and provider-set prices in home care until price caps are introduced.<\/p>\n For many older Australians \u2014 especially those on the Age Pension or living with limited savings \u2014 even small increases in care costs can tip the balance from \u201cjust managing\u201d to \u201cnot coping.\u201d The new system is meant to be fair, but until price regulation kicks in mid-2026, affordability may vary widely.<\/p>\n So what can you do if the numbers don\u2019t work?<\/p>\n If you\u2019re struggling to pay your fees \u2014 either at home or in residential care \u2014 you may be eligible for hardship assistance. This applies to:<\/p>\n Hardship supplements can reduce or eliminate certain charges. To apply, you\u2019ll need to demonstrate financial stress and provide evidence of your income and expenses. The application is made through Services Australia, not your provider.<\/p>\n Sometimes fees are higher than they need to be because your income or asset assessment is out of date. You can:<\/p>\n <\/p>\n This can lead to a reduction in your expected contributions \u2014 especially if your circumstances have recently changed.<\/p>\n If you’re waiting for a Home Care Package and can’t afford private services in the meantime:<\/p>\n It\u2019s not perfect, but it can bridge the gap.<\/p>\n Your provider may be able to adjust your care plan to prioritise essential services within your budget. They may also offer payment plans, discounts, or bundled options.<\/p>\n And don\u2019t forget: under the \u201cno worse-off\u201d protections, if you\u2019re eligible, you should not be charged more than what you\u2019re paying now. If you\u2019re being quoted higher, ask why \u2014 and get it in writing.<\/p>\n These reforms aren\u2019t just bureaucratic reshuffles \u2014 they\u2019re a response to deep structural issues in Australia\u2019s aged care system. The Royal Commission into Aged Care Quality and Safety, which concluded in 2021, made it clear: the system was underfunded, overly complex, and failing too many older Australians.<\/p>\n The goal of the Support at Home model is to simplify and unify services \u2014 and make funding more sustainable in the long run.<\/p>\n <\/p>\n One of the biggest philosophical shifts is the expectation that those who can afford to contribute more should do so. That\u2019s why:<\/p>\n The government\u2019s rationale? To redirect more public funding toward those with limited means \u2014 and encourage financial responsibility among wealthier users.<\/p>\n \u00a0\u201cAustralia\u2019s aged care system must be fit for purpose, financially sustainable, and fair. That means rethinking who pays, and how.\u201d Advocates fear that market-based pricing in the short term could create gaps in access \u2014 especially for older people in rural areas, non-English speakers, and those without family advocates.<\/p>\n Without strong enforcement of the \u201cno worse-off\u201d rule and clearer guidance on pricing, some vulnerable people may fall through the cracks.<\/p>\n Whether you\u2019re already in care or trying to plan ahead, this transition doesn\u2019t need to catch you off guard. The changes are big \u2014 but there are clear, proactive steps you can take to protect yourself or a loved one.<\/p>\n If you were:<\/p>\n \u2026you\u2019re covered by the \u201cno worse-off\u201d rule. That means you won\u2019t pay more under the new system. You don\u2019t need to apply for this protection \u2014 but it helps to confirm your approval status via My Aged Care (call 1800 200 422).<\/p>\n <\/p>\n Your current home care provider should walk you through how your care package will be reviewed and restructured under Support at Home. Ask:<\/p>\n If their answer isn\u2019t clear or doesn’t match your current pricing, ask them to explain how the \u201cno worse-off\u201d rule is being applied.<\/p>\n Even if you’re not eligible for automatic protections, you can still:<\/p>\n The earlier you ask, the more likely you\u2019ll avoid last-minute shocks.<\/p>\n If things feel overwhelming, you’re not alone. Free, independent aged care advocates are available in every state and territory. They can:<\/p>\n Find support via OPAN (Older Persons Advocacy Network): Sometimes small changes to your care plan \u2014 reducing hours, adjusting services, or accessing CHSP options \u2014 can make the difference between unaffordable and manageable. It\u2019s worth having a frank conversation with your provider.<\/p>\n Aged care is meant to offer support, not stress. But with the changes coming in November 2025, many older Australians and their families are feeling uncertain \u2014 especially around cost.<\/p>\n The government\u2019s reforms aim to create a fairer, simpler system. Yet the reality is more complex. For some, costs may rise. For others, protections are in place \u2014 but not always well explained. And for people already living on the edge, even a small increase in daily fees can cause real hardship.<\/p>\n <\/p>\n The key is acting early:<\/p>\n <\/p>\n <\/p>\n My Aged Care (eligibility, fees, approvals): Hardship Assistance & Means Tests (Services Australia): Free Advocacy Support (OPAN): Support at Home Reform Info: <\/p>\n <\/p>\n <\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":" Big changes are coming to aged care fees from November 2025 \u2014 and not everyone will be protected. This guide breaks down what\u2019s changing, who\u2019s covered under the \u201cno worse-off\u201d rule, and what to do if you can\u2019t afford the new costs.<\/p>\n","protected":false},"author":1,"featured_media":139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n From November 1, Australia\u2019s aged care system enters a new phase \u2014 one that could bring clarity for some and financial strain for others. For older Australians receiving care at home, the shift to the new Support at Home<\/em> model introduces a major change: more user-pays costs, with providers setting their own prices until 2026.<\/p>\n\n\n\n That\u2019s daunting enough if you\u2019re living on a fixed income. But what if you\u2019re broke \u2014 or close to it?<\/p>\n\n\n\n Many families are only just coping with current home care fees, let alone new contributions that aren\u2019t yet fully transparent. The good news? If you already have a Home Care Package or were approved before 12 September 2024, you\u2019re protected under a \u201cno worse off\u201d rule. But what that means \u2014 and what to do if you can\u2019t afford rising care costs \u2014 isn\u2019t always clear.<\/p>\n\n\n\n This article breaks it down:<\/p>\n\n\n\n Because navigating aged care shouldn\u2019t be another full-time job.<\/p>\n\n\n\n November 1 marks the start of the biggest funding shift in aged care in over a decade. The reforms, part of the Aged Care Act 2024<\/em>, introduce a new national system called Support at Home<\/strong>, replacing the existing Home Care Packages. This shift is designed to streamline services \u2014 but it also alters how much people may have to pay.<\/p>\n\n\n\n Under the new model, all in-home care recipients will pay what\u2019s called a participant contribution<\/strong>. Unlike the current capped fees, these charges are based on provider-set prices \u2014 meaning costs could vary between providers until the government introduces price regulation in July 2026.<\/p>\n\n\n\n While many care recipients already pay something towards services, this introduces a more market-driven approach. There\u2019s also less direct control from government over what\u2019s charged in the interim.<\/p>\n\n\n\n If you or a loved one enters residential aged care after 1 November, two new daily fees will apply:<\/p>\n\n\n\n These replace the current Means-Tested Care Fee for new residents. Together, they could amount to over $100 per day. While a lifetime cap of around $130,000 applies, the day-to-day impact may be significant \u2014 especially for those with limited assets.<\/p>\n\n\n\n For now, providers do. While the government plans to regulate home care prices by July 2026, we\u2019re entering an 18\u201324 month window where costs could increase in unpredictable ways.<\/p>\n\n\n\n In short:<\/p>\n\n\n\n One of the most reassuring parts of the aged care reforms is the government\u2019s promise: no one currently receiving care will be financially worse off<\/em>.<\/p>\n\n\n\n But what does that actually mean \u2014 and who does it apply to?<\/p>\n\n\n\n You\u2019re protected if:<\/p>\n\n\n\n For residential care, protections apply if:<\/p>\n\n\n\n This isn\u2019t something you need to apply for \u2014 eligibility is automatic. Your care plan will be reviewed and transitioned, but your new costs under Support at Home will be equal to or lower than what you were paying before.<\/p>\n\n\n\n Let\u2019s say you\u2019re currently paying a basic daily fee and an income-tested fee under your Home Care Package. Under the new system, your provider may set higher prices \u2014 but you will not be required to pay more than your current rate<\/strong>.<\/p>\n\n\n\n The government is essentially covering the gap behind the scenes to ensure you\u2019re not hit with a cost increase simply because of the policy shift.<\/p>\n\n\n\n Similarly, if you\u2019re already living in residential care, you won\u2019t be moved to the new hotel-style fees. You\u2019ll continue paying under the Means-Tested Care Fee system.<\/p>\n\n\n\n If you:<\/p>\n\n\n\n \u2026you\u2019ll be subject to the new fee structures, and provider-set prices in home care until price caps are introduced.<\/p>\n\n\n\n For many older Australians \u2014 especially those on the Age Pension or living with limited savings \u2014 even small increases in care costs can tip the balance from \u201cjust managing\u201d to \u201cnot coping.\u201d The new system is meant to be fair, but until price regulation kicks in mid-2026, affordability may vary widely.<\/p>\n\n\n\n So what can you do if the numbers don\u2019t work?<\/p>\n\n\n\n If you\u2019re struggling to pay your fees \u2014 either at home or in residential care \u2014 you may be eligible for hardship assistance<\/strong>. This applies to:<\/p>\n\n\n\n Hardship supplements can reduce or eliminate certain charges. To apply, you\u2019ll need to demonstrate financial stress and provide evidence of your income and expenses. The application is made through Services Australia<\/strong>, not your provider.<\/p>\n\n\n\n Sometimes fees are higher than they need to be because your income or asset assessment is out of date. You can:<\/p>\n\n\n\n This can lead to a reduction in your expected contributions \u2014 especially if your circumstances have recently changed.<\/p>\n\n\n\n If you're waiting for a Home Care Package and can't afford private services in the meantime:<\/p>\n\n\n\n It\u2019s not perfect, but it can bridge the gap.<\/p>\n\n\n\n Your provider may be able to adjust your care plan to prioritise essential services within your budget. They may also offer payment plans, discounts, or bundled options.<\/p>\n\n\n\n And don\u2019t forget: under the \u201cno worse-off\u201d protections, if you\u2019re eligible, you should not be charged more than what you\u2019re paying now<\/strong>. If you\u2019re being quoted higher, ask why \u2014 and get it in writing.<\/p>\n\n\n\n These reforms aren\u2019t just bureaucratic reshuffles \u2014 they\u2019re a response to deep structural issues in Australia\u2019s aged care system. The Royal Commission into Aged Care Quality and Safety, which concluded in 2021, made it clear: the system was underfunded, overly complex, and failing too many older Australians.<\/p>\n\n\n\n The goal of the Support at Home<\/strong> model is to simplify and unify services \u2014 and make funding more sustainable in the long run.<\/p>\n\n\n\n One of the biggest philosophical shifts is the expectation that those who can afford to contribute more should do so<\/em>. That\u2019s why:<\/p>\n\n\n\n The government\u2019s rationale? To redirect more public funding toward those with limited means \u2014 and encourage financial responsibility among wealthier users.<\/p>\n\n\n\n \u201cAustralia\u2019s aged care system must be fit for purpose, financially sustainable, and fair. That means rethinking who pays, and how.\u201d Advocates fear that market-based pricing in the short term could create gaps in access \u2014 especially for older people in rural areas, non-English speakers, and those without family advocates.<\/p>\n\n\n\n Without strong enforcement of the \u201cno worse-off\u201d rule and clearer guidance on pricing, some vulnerable people may fall through the cracks.<\/p>\n\n\n\n Whether you\u2019re already in care or trying to plan ahead, this transition doesn\u2019t need to catch you off guard. The changes are big \u2014 but there are clear, proactive steps you can take to protect yourself or a loved one.<\/p>\n\n\n\n If you were:<\/p>\n\n\n\n \u2026you\u2019re covered by the \u201cno worse-off\u201d<\/em> rule. That means you won\u2019t pay more<\/strong> under the new system. You don\u2019t need to apply for this protection \u2014 but it helps to confirm your approval status via My Aged Care<\/strong> (call 1800 200 422).<\/p>\n\n\n\n Your current home care provider should walk you through how your care package will be reviewed and restructured under Support at Home. Ask:<\/p>\n\n\n\n If their answer isn\u2019t clear or doesn't match your current pricing, ask them to explain how the \u201cno worse-off\u201d rule is being applied.<\/p>\n\n\n\n Even if you're not eligible for automatic protections, you can still:<\/p>\n\n\n\n The earlier you ask, the more likely you\u2019ll avoid last-minute shocks.<\/p>\n\n\n\n If things feel overwhelming, you're not alone. Free, independent aged care advocates are available in every state and territory. They can:<\/p>\n\n\n\n Find support via OPAN<\/strong> (Older Persons Advocacy Network): Sometimes small changes to your care plan \u2014 reducing hours, adjusting services, or accessing CHSP options \u2014 can make the difference between unaffordable and manageable. It\u2019s worth having a frank conversation with your provider.<\/p>\n\n\n\n Aged care is meant to offer support, not stress. But with the changes coming in November 2025, many older Australians and their families are feeling uncertain \u2014 especially around cost.<\/p>\n\n\n\n The government\u2019s reforms aim to create a fairer, simpler system. Yet the reality is more complex. For some, costs may rise. For others, protections are in place \u2014 but not always well explained. And for people already living on the edge, even a small increase in daily fees can cause real hardship.<\/p>\n\n\n\n The key is acting early<\/strong>:<\/p>\n\n\n\n \u201cWe just want to stay in our homes, with a bit of help \u2014 not go broke trying.\u201d If that resonates with you, you\u2019re not alone. And you have options.<\/p>\n","_et_gb_content_width":"1080","footnotes":""},"categories":[29,1,36],"tags":[50,57,47,52,54,49,55,53,51,58,56,48],"class_list":["post-133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agedcare","category-blog","category-policy-regulations-updates","tag-aged-care-costs-australia","tag-aged-care-financial-advice","tag-aged-care-reforms-2025","tag-aged-pensioners","tag-hardship-assistance-aged-care","tag-home-care-package-changes","tag-in-home-aged-care-fees","tag-my-aged-care","tag-no-worse-off-rule","tag-residential-aged-care-fees","tag-services-australia","tag-support-at-home"],"yoast_head":"\n\u00a0What You\u2019ll Still Pay (And What You Won\u2019t)<\/h3>\n
Who\u2019s Not Covered?<\/h3>\n
\n
\u00a0What If You Can\u2019t Afford the Costs?<\/h3>\n
\u00a01. Apply for Financial Hardship Assistance<\/h4>\n
\n
\u00a02. Reassess Your Means Test<\/h4>\n
\n
\u00a03. Consider Transition Options<\/h4>\n
\n
\u00a04. Speak Up Early<\/h4>\n
\u00a0Why Are These Changes Happening?<\/h2>\n
\u00a0The Old System Was Cracking<\/h3>\n
\n
A Shift Toward Shared Responsibility<\/h3>\n
\n
<\/em>\u2014 Aged Care Taskforce Report, 2023<\/p>\n\u00a0But Critics Are Watching<\/h3>\n
\u00a0What You Can Do Right Now<\/h2>\n
\u00a01. Check Your Approval Date<\/h4>\n
\n
\u00a02. Ask Your Provider for a Transition Plan<\/h4>\n
\n
3. Request a Fee Review<\/h4>\n
\n
\u00a04. Talk to an Advocate<\/h4>\n
\n
\ud83d\udcde 1800 700 600 | \ud83c\udf10 opan.org.au<\/a><\/p>\n\u00a05. Revisit Your Care Goals<\/h4>\n
\u00a0Where to From Here?<\/h2>\n
\n
Quick Links & Resources<\/h2>\n
https:\/\/www.myagedcare.gov.au<\/a> | \ud83d\udcde 1800 200 422<\/p>\n
https:\/\/www.servicesaustralia.gov.au<\/a><\/p>\n
https:\/\/opan.org.au<\/a> | \ud83d\udcde 1800 700 600<\/p>\n
https:\/\/www.health.gov.au<\/p>\n\n
What Exactly Is Changing in November?<\/strong><\/h2>\n\n\n\n
Support at Home replaces Home Care Packages<\/strong><\/h3>\n\n\n\n
Residential Aged Care Costs Also Changing<\/strong><\/h3>\n\n\n\n
\n
Who Sets the Prices?<\/strong><\/h3>\n\n\n\n
\n
Who\u2019s Protected (And What Does \u201cNo Worse-Off\u201d Really Mean)?<\/strong><\/h2>\n\n\n\n
Who\u2019s Covered Under the \u201cNo Worse-Off\u201d Rule<\/strong><\/h3>\n\n\n\n
\n
\n
What You\u2019ll Still Pay (And What You Won\u2019t)<\/strong><\/h3>\n\n\n\n
Who\u2019s Not<\/em> Covered?<\/strong><\/h3>\n\n\n\n
\n
What If You Can\u2019t Afford the Costs?<\/strong><\/h2>\n\n\n\n
1. Apply for Financial Hardship Assistance<\/strong><\/h3>\n\n\n\n
\n
2. Reassess Your Means Test<\/strong><\/h3>\n\n\n\n
\n
3. Consider Transition Options<\/strong><\/h3>\n\n\n\n
\n
4. Speak Up Early<\/strong><\/h3>\n\n\n\n
Why Are These Changes Happening?<\/strong><\/h2>\n\n\n\n
The Old System Was Cracking<\/strong><\/h3>\n\n\n\n
\n
A Shift Toward Shared Responsibility<\/strong><\/h3>\n\n\n\n
\n
\n
\u2014 Aged Care Taskforce Report, 2023<\/em><\/p>\n<\/blockquote>\n\n\n\nBut Critics Are Watching<\/strong><\/h3>\n\n\n\n
What You Can Do Right Now<\/strong><\/h2>\n\n\n\n
1. Check Your Approval Date<\/strong><\/h3>\n\n\n\n
\n
2. Ask Your Provider for a Transition Plan<\/strong><\/h3>\n\n\n\n
\n
3. Request a Fee Review<\/strong><\/h3>\n\n\n\n
\n
4. Talk to an Advocate<\/strong><\/h3>\n\n\n\n
\n
\ud83d\udcde 1800 700 600 | \ud83c\udf10 opan.org.au<\/a><\/p>\n\n\n\n5. Revisit Your Care Goals<\/strong><\/h3>\n\n\n\n
Where to From Here?<\/strong><\/h2>\n\n\n\n
\n
\n\n\n\nQuick Links & Resources<\/h3>\n\n\n\n
\n
https:\/\/www.myagedcare.gov.au<\/a> | \ud83d\udcde 1800 200 422<\/li>\n\n\n\n
https:\/\/www.servicesaustralia.gov.au<\/a><\/li>\n\n\n\n
https:\/\/opan.org.au<\/a> | \ud83d\udcde 1800 700 600<\/li>\n\n\n\n
https:\/\/www.health.gov.au<\/a><\/li>\n<\/ul>\n\n\n\n
\n\n\n\nFinal Thought<\/h3>\n\n\n\n
\n
\u2013 Marie, 82, carer and pensioner, VIC<\/em><\/p>\n<\/blockquote>\n\n\n\n