The New Aged Care Act
Understanding the new Aged Care Act
A new Aged Care Act will come into effect from 1 November 2025, introducing important reforms designed to place older people at the centre of care. Developed in response to the recommendations of the Royal Commission into Aged Care Quality and Safety, these changes will strengthen the rights of people receiving aged care, improve service quality and create a more transparent and supportive system.
At RFBI, we’re committed to helping you understand what these changes mean; whether you are living in one of our aged care villages, receiving care at home, enjoying your retirement in one of our communities or about to start your aged care journey.
Our team are also here to help, so if you have further questions or would like assistance, please do not hesitate to contact our team on 1800 181 929.
What's changing?
Key reforms under the new Act include:
- A single assessment process to access all aged care services.
- New Support at Home program to simplify and strengthen home care.
- Residential care places will be assigned to the consumer, not the provider.
- Strengthened Aged Care Quality Standards with clearer reporting and accountability.
- New registered Supporter roles to help individuals make decisions about their care.
- Consumer contributions for non-clinical services based on means-testing
- New residential aged care fees and charges.
What this means for you
If you are currently receiving care or services from RFBI, either in one of our residential aged care villages or through our Care at Home services, you can rest assured that your existing services will continue without interruption. While the Act does not directly apply to retirement village residents, the Act now recognises retirement villages as a place where aged care services can be delivered.
To find out more about the changes to each specific to residential care or home care services, click the corresponding section below:
FAQs - your questions answered
No. If you are already receiving aged care services, either in residential aged care or in your home, your care will continue uninterrupted. This is the same for those who have been approved for home care or residential aged care services but not yet commenced receiving services.
Anyone being assessed for aged care services from 1 November 2025 will follow the new assessment and approval process.
Not necessarily. The government has committed to continue supporting individuals who cannot afford the cost of their aged care. The government has also committed to fully funding all clinical care, both in the home and in residential aged care.
However, individuals will be expected to contribute towards the cost of their non-clinical care and services if they can afford to do so. Contributions will be means-tested, using the information provided in your Income and Asset Assessment. If you have not already completed an income and asset assessment it is recommended that you do, even if you are not looking to enter into residential aged care immediately as the outcome of this assessment will be used by the government to determine what you are required to pay and can take up to 12 weeks to be completed.
For more information and links to the relevant forms, please visit https://www.myagedcare.gov.au/income-and-means-assessments
The Government has advised that anyone who was approved or already receiving home care services through the home care package program as at 12 September 2024 will be protected by a no-worse off clause, ensuring they do not have to pay more for their care and services than they are now. As the rules are not yet published, please note that this is still subject to change.
Similarly, anyone already living in a residential aged care village as at 31 October 2025 will be grand parented and continue to pay for their residential aged care under the current fee structure.
A Supporter is a new, registered role under the Act that representatives can obtain to assist residents in making their own decisions. A resident may have more than one Supporter and the Supporter role sits alongside, not replace, any other registered role such as Power of Attorney and Enduring Guardian.
Importantly, Supporters are only empowered to assist residents make their own decisions. They are not able to make decisions on behalf of a resident.
A Power of Attorney or Guardian can make decisions on behalf of a resident.
A person may hold one or more of these roles.
The government will assess your income and assets to determine what you are required to contribute towards the cost of your aged care services.
If you have not already completed an income and asset assessment it is recommended that you do, even if you are not looking to enter into residential aged care immediately as the outcome of this assessment will be used by the government to determine what you are required to pay and can take up to 12 weeks to be completed. The Income and Asset Assessment Form is available on Services Australia.
Your local RFBI team is here to help. Whether it’s understanding your assessment, fees or care options, we’ll guide you every step of the way. Call 1800 181 929 to contact our team.
You can find out more about the new aged care act from the Department of Health and Aged Care.