Aged Care Reforms In 2025

Timeline of recent aged care reforms

2018–2019: Royal Commission into Aged Care Quality and Safety

In 2018, the Australian Government launched the Royal Commission into Aged Care Quality and Safety to address growing concerns about the standard of aged care being delivered across the country. The inquiry uncovered issues in funding, policy, service delivery and overall culture and operations.

The final report set out 148 recommendations aimed at transforming aged care over the next decade. One of the major proposals was the creation of an independent pricing authority, separate from both the Government and the aged care sector, to ensure transparency and fairness.

2021: Australian Government Response

Following the Royal Commission’s final report, the Australian Government prepared initiatives to boost service quality and strengthen provider accountability. This response also set the stage for the structural changes that would follow, including the development of the Support at Home Program 2025.

2023: Changes to Home Care Package

Home Care Package changes in 2023 were implemented to ensure that more of each care recipient’s funding went directly toward their needs. This included placing caps on management and administration fees. Beginning January 1, 2023, providers could no longer charge more than 20% for care management and 15% for package management, based on the total value of the package.

Additional 2023 Home Care Package changes included the removal of exit fees and a requirement for clearer billing of third-party service costs, helping individuals and families better understand how their funding is being used.

2025: The Support at Home Package

From July 1, 2025, Australia’s aged care system will take a major step forward with the introduction of the Support at Home Program. This new model will replace the existing Home Care Packages and Short-Term Restorative Care (STRC) Program, with a clear goal: to help older Australians live independently in their own homes for as long as possible.

The program will roll out gradually, with an estimated 1.4 million people expected to benefit by 2035. Support at Home will offer eight levels of ongoing funding, the highest of which can go up to $78,000 per year.

Under this new model, older Australians will have access to:

• Tailored care packages that match their needs and goals
• Support for home modifications to improve safety and accessibility
• Faster access to assistive technology, including a new loan scheme for equipment

If you’re already receiving a Home Care Package, are on the National Priority System or have been approved for a package by June 30, 2025, you’ll be allocated to a Support at Home budget that aligns to your current package level (or approved level when available).

Why aged care assessment reform is important

Before someone can access government-funded aged care services, they need to be formally assessed. This process helps determine what level of care and support they’re eligible for.

Previously, multiple assessment pathways were used depending on the type of care required. This created confusion and inconsistency, with many older Australians needing to repeat their story or switch between different assessment organisations as their needs changed.

To improve this experience, the Single Assessment System was introduced. It aims to remove confusion and create a more streamlined process for older Australians entering or moving through aged care.

The new system creates a single assessment pathway so older Australians can switch providers easily. This removes the need to take individual assessments for each funding program, such as STRC, CHSP or HCP, as the Support at Home program will accommodate the former three programs and be assessed by single assessment teams. Please note that CHSP will remain and will roll into the Support at Home program, forecasted to move on July 1, 2027.

There are several ways you can apply for an assessment:

• Visit the My Aged Care website and submit an application online.
• Call My Aged Care on 1800 200 422.
• Book an in-person appointment with an Aged Care Specialist Officer at participating Services Australia centres.

Contact Homecare My Way for personalised guidance

It’s natural to have questions about how aged care changes in 2025 might affect you or someone you care for. At Homecare My Way, we’re here to make that transition easier with tailored assistance every step of the way.

Let us help you get started with the aged care program that best suits your goals, lifestyle and preferences. Whether you’re thinking about switching providers or exploring self-management plans, we’ve got you covered. If you’re preparing for an aged care assessment, we can guide you through the process, including what information to have ready, like your health details, medications and daily support needs.

Contact a Homecare My Way Care Advisor today to learn more about the latest aged care reforms in Australia.