From 1 November 2025, significant changes to Australia’s aged care system came into effect. These reforms impact how residential aged care and home care services are structured, how fees are calculated, and how families need to plan financially.
Calvin, Senior Financial Adviser, explains that for many families, aged care is no longer something to “deal with later.” The new rules mean earlier planning can make a substantial difference to long-term outcomes.
What has changed?
While every situation is different, key changes include:
- Updates to accommodation payment structures
- Adjustments to means testing rules
- Changes to the treatment of assets and income
- Reforms to Home Care packages and funding models
- Greater emphasis on transparency and long-term sustainability
Importantly, these changes can affect:
- Whether a Refundable Accommodation Deposit (RAD) is required
- How much ongoing income-tested care fees may be payable
- The impact on Age Pension entitlements
- Estate planning outcomes
- The decision to retain or sell the family home
For some families, the financial difference under the new framework can be substantial.
Why planning is more important than ever
Aged care decisions are often made during periods of stress — following a fall, hospitalisation or sudden decline in health. Without a clear strategy, families can unintentionally:
- Pay more in fees than necessary
- Structure payments inefficiently
- Reduce pension entitlements unnecessarily
- Miss opportunities to preserve capital for future generations
The new rules increase the importance of proactive modelling and tailored advice.
Our team’s commitment to staying current
Calvin, Richard and Adrian from the Financial Planning team are accredited Aged Care Advisers and have recently undertaken further intensive training to ensure our advice reflects the significant legislative changes introduced from 1 November 2025.
This additional training focused on:
- Detailed analysis of the updated legislation
- Practical fee modelling under the new system
- Strategic accommodation payment decisions
- Pension interaction strategies
- Estate and intergenerational planning implications
Our objective is to provide advice that is technically accurate, strategically sound, and aligned with the latest regulatory framework in what remains one of the most complex areas of financial planning.
When should you seek advice?
You may benefit from a review if:
- You or a parent are over age 75
- Health is beginning to decline
- There has been a recent hospital stay
- You are considering home care or residential care
- You want clarity around future funding options
Even a high-level discussion can provide clarity and significantly reduce stress later.
If you would like to discuss how the new aged care rules may affect you or a family member, please contact our office to arrange a confidential discussion.
Need help navigating aged care? We’re here to guide you. Reach out to the Financial Planning team:
E financialplanning@highview.com.au
T (03) 5990 1000
