BREAKING: Major changes to the Aged Care system have just been announced, set to take effect on November 1, 2025. While the government will release 40,000 additional Home Care Packages to address a staggering waiting list of 87,597 elderly Australians, many will face increased costs for essential non-clinical services.
Starting in 2025, those entering the aged care system will see everyday support services classified as “non-clinical,” which will now require co-payments. This means that seniors may need to pay around $50 per hour for personal care services like bathing and hygiene assistance, and $75 per hour for help with cleaning, laundry, and cooking. As the cost of living continues to rise, this is alarming news for many elderly individuals and their caregivers.
The government’s decision comes amid escalating health costs, prompting officials to act to sustain the nation’s finances. A spokesperson from the Department of Health stated, “These changes aim to balance the needs of the elderly with the financial realities facing our healthcare system.” However, the implications for many families could be dire, as these rising costs may push them to consider premature hospital admissions if home care becomes unaffordable.
Moreover, new entrants to residential care facilities will now be means-tested to determine if they will pay a “non-clinical care contribution,” which could reach up to $100 a day for services such as mobility assistance and lifestyle activities. Additionally, a daily “hotelling supplement” may also be levied for meals, laundry, and cleaning services, further burdening residents and their families.
Families securing rooms in residential aged care will now face a 2 percent annual retention fee on the Refundable Accommodation Deposit (RAD), capped at 10 percent over five years. These financial strains are expected to heighten the psychological burdens on family members, who may find themselves caught between providing care and managing their own financial health.
Despite these challenging changes, the release of 40,000 Home Care Packages will alleviate some waiting times, with 20,000 packages available by November 1, 2025, and another 20,000 by December 31, 2025. This initiative aims to provide support to more seniors in need, but the cost implications remain a heavy concern.
At the recent Auwal Care Inc (ACI) Annual General Meeting held on September 21, 2025, discussions about the shifting policy landscape took center stage. ACI, a not-for-profit organization focused on the well-being of the elderly, particularly those from culturally diverse backgrounds, announced plans to conduct research into the health and social needs of Muslims aged 70 and older. “With evidence-backed data, we intend to advocate for better services for our vulnerable elders,” said Haji Shayum Rahim, Chairman of ACI.
As these changes unfold, elderly Australians and their families must brace for a new era of aged care that balances support with significant costs. The impact of these policy shifts will resonate deeply, making thoughtful planning crucial for maintaining dignity and independence in old age.
Stay tuned for more updates as this story develops. For those interested in ACI’s research, you can learn more by emailing [email protected].
