Sweeping reforms to aged care came into effect on 1 November 2025 to help improve the quality, transparency and flexibility of care.

With more care levels, clearer pricing, and greater control over how your funding is used, the new system aims to better match services to individual needs. Providers will now be required to offer detailed cost breakdowns, empowering you to make informed decisions about your care.

While the reforms are a step forward in care quality, they also come with changes in how services are funded and that may mean higher out-of-pocket costs for some.

What you pay depends on your financial situation – whether you receive a full or part pension or are self-funded – and the services you access.

As the aged care landscape evolves, staying informed is key to making confident choices. Whether you’re planning for yourself or supporting a loved one, understanding the new system will help you access the right care at the right time.

Help at home

From 1 November the current Home Care Packages have been replaced by a new program called Support at Home.

The key changes include:

• Eight levels of care (up from four) to better match individual needs
• Extra funding for assistive technology, home modifications and palliative care

Services are expected to remain the same but the way you pay for them may change.

• For example, clinical care (such as nursing or physiotherapy) will be fully funded by the Government.
• You may pay more for everyday living services (such as meal preparation or cleaning) than you do for independence supports (like personal care or transport).
• The out-of-pocket costs for everyday living will range from 17.5 per cent for full pensioners to 80 per cent for self-funded retirees.
• Non-clinical support, like showering, will cost five per cent for full pensioners to 50 per cent for self-funded retirees.

If you were approved for a Home Care Package on or before 12 September 2024, you will now be eligible for fee concessions to ensure you are not worse off under the new rules.

The package level you are assigned sets the total funding available to pay for care, with 10 per cent allocated to the care provider to cover the cost of care management.

You then work with your provider to decide how you want to spend the rest of the budget. The provider will set their fees for services and you will make a contribution based on your income.

Residential aged care

Room prices in aged care facilities have been steadily rising following an increase in the Refundable Accommodation Deposit (RAD) threshold from $550,000 to $750,000.

Higher RADs mean you may need to use more of your savings or income to cover aged care costs.

From 1 November 2025, anyone who moves into care and pays a RAD, will have two per cent of that amount deducted each year, for up to five years.

You can still opt to pay a Daily Accommodation Payment (DAP), but this will increase every six months in line with inflation.

Other fees include:

• the basic daily fee (set at 85 per cent of the single age pension)
• a means-tested fee or non-clinical care contribution
• potentially a higher everyday living fee (previously known as extra or additional services)

Fee caps and planning ahead

The lifetime cap on aged care contributions continues. You won’t pay more than $130,000 (indexed) over your lifetime towards home care and residential care combined.

Understanding how the changes affect your financial future is vital. You’ll need to consider:

• whether someone will remain in the family home
• your current income and assets
• potential age pension entitlements
• estate planning strategies

Use the government’s fee estimator at MyAgedCare to get a clearer picture of your potential costs.

Get advice early

Navigating aged care can be complex and the changes add new layers of decision-making.

We are here to help you understand the recent changes and assist you when it comes to funding aged care, as well as providing strategic opportunities to minimise fees, maximise your cashflow and plan your future needs.

If you would like to discuss your aged care options, please give us a call.

Integrity One Wealth Advisers  Pty Ltd

What is a retirement village

There are so many options when it comes to moving into a retirement village. Here we explain what some of them are along with the contractual arrangements you may have for each accommodation.

A retirement village is accommodation:

• intended for people who are 55 years or older
• that may be independent living units, serviced apartments, care facilities or a combination of these
• providing services and communal facilities to residents
• operated by government, commercial businesses or as a charitable retirement village by a charitable body.

Retirement villages don’t include residential care as defined in aged care legislation or commercial residential property.

Types of occupancy arrangements

Retirement village contracts aren’t the same as ordinary residential property contracts. A retirement village contract is normally terminated on the death of a resident or when the resident leaves the village, for example, to go to an aged care facility.

Retirement villages offer several different contractual arrangements to residents. The most common types of contracts are:

• long-term leases or licences
• periodic leases
• long-term loan leases or licences
• special share or unit classes
• strata title schemes
• purple titles (tenancy in common).

Long-term leases or licences

A long-term lease in a retirement village will typically be a lease or licence to live in a retirement village for a period of more than 49 years.

The lease doesn’t amount to ownership of the unit or part of the property but is registered on the title deeds of the retirement village.

The contracts are commonly known as lease premium arrangements.

Entry

Commonly in a leasehold situation, an incoming resident pays an entry contribution close to the market value of the dwelling. In return they’re given:

• a long-term lease on that unit
• the right to use the communal facilities in the retirement village.

Upkeep

The residents pay for the upkeep of the communal facilities. This may occur on a continuing basis through a regular fee or levy. The communal facilities remain your property as the operator of the retirement village.

Termination

Depending on the contractual agreements, on termination of the lease the outgoing resident or beneficiaries may be entitled to a lease termination payment. This might be higher than the entry contribution due to capital growth (if there is any entitlement to capital growth or appreciation). Deferred management, refurbishment and other fees (commonly referred to as exit fees) are charged either on the incoming or outgoing price of the dwelling.

Periodic leases

Another form of lease is the prepaid or periodic rental lease, where a resident pays a period of rent in advance.

Entry

Residents with this kind of lease pay a fortnightly or monthly instalment that includes rent and a service fee. The rent is usually calculated in line with government pensions and rent assistance payments. Entry may be subject to a means test for the incoming resident.

Termination

If the lease is terminated before the stipulated years are up, the resident may get a refund for the time remaining.

Strata title schemes

Entry

Residents with strata title to their units are owners and have a separate certificate of title. They may either:

• share as tenants-in-common in the ownership of the communal facilities, or
• be granted rights to the use of communal facilities.

Upkeep

The residents may pay for the upkeep of the communal facilities, on a continuing basis, through a regular fee or levy.

Termination

When the resident leaves the retirement village, the tax consequences depend on the resident’s personal circumstances.

Purple titles (tenancy in common)

Entry

Each resident purchases an equal undivided share or ‘purple title’ in the retirement village. This means every co-owner would have an equal interest in every unit in the village. A resident would then be granted an exclusive use of one of the units in the village. In this way, each resident can occupy a residence to the exclusion of the other co-owners of the village. They don’t own the unit, but they do own a share in the whole property.

Upkeep

The residents may pay for the upkeep of the communal facilities, on a continuing basis through a regular fee or levy.

Termination

When the resident leaves the retirement village, the tax consequences depend on the resident’s personal circumstances.

To find out more about these types of accommodations, contact us for more information.

Source: ato.gov.au February 2025
Reproduced with the permission of the Australian Tax Office. 

Integrity One Wealth Advisers  Pty Ltd

Key points:

• My Aged Care will be your first point of contact if you are looking to access Government funded aged care services
• A RAS or ACAT/S assessment can determine what services will best suit your needs
• If you are found eligible for government-funded services, you will then be able to start looking for aged care providers

UPDATE — from December 9, 2024, the Single Assessment System replaced the Regional Assessment Service, independent Australian National Aged Care Classification assessors and ACAT/ACAS specialists. Every approved assessor will be able to deliver an assessment for each level of support, whether in-home or for residential care. More information can be found on the Aged Care Guide website.

The first thing you need to do is register with My Aged Care. This is the agency that looks after all government-funded aged care programs.

When you first call the My Aged Care Contact Centre, on 1800 200 422, an operator will register you and ask you a number of questions about your personal circumstances and care needs.

These questions will be quite basic and shouldn’t take too long. All you will need is your Medicare card when you call as this information is stored with your other details on the My Aged Care database.

Examples of the questions you will be asked are:

• Are you currently receiving aged care services?
• Are you getting support from a carer or family member?
• Can you prepare your own meals and do housework?
• Do you need assistance taking a shower or bath and do you need help getting dressed?
• Are there any health concerns or did you have a recent fall?
• Do you feel lonely or isolated?
• Are there any safety risks in the home?

The aim of this screening is to figure out what needs and support you require and whether you are eligible for a further assessment in person.

Additionally, the information you provide during this quick process will be recorded on your application, so you don’t have to stress about remembering the information you provided during your eligibility check.

If you are worried about doing the eligibility check by yourself, you are allowed to have a family member, friend or carer with you for support while applying online or on the phone.

You can also nominate someone to apply on your behalf. In this case, you will need to appoint your family member, friend or carer as your representative on My Aged Care.

If you are successful in your application, the contact centre operator will refer you for either a RAS or ACAT/S home support assessment.

If the operator determines that you are eligible for basic home support through the Commonwealth Home Support Programme (CHSP) you will be assessed by a Regional Assessment Service (RAS).

Otherwise, if the operator believes you require higher care support, a member of an Aged Care Assessment Team/Service (ACAT/S) will visit you at home to assess you for a Home Care Package (HCP) that will meet your needs.

When you first contact My Aged Care, the contact centre operator will assign you an aged care client number and will open a central client record. This record will eventually contain your information about your assessed needs and government-funded care services you have been found eligible for.

What will a face to face assessment be like?

Your in-person assessment will be a lot more comprehensive than your over the phone eligibility check.

Be open and transparent about your wishes and what you believe will be of assistance around the home.

Your ACAT/S assessor may recommend things you haven’t even thought of, which will be of benefit around the home.

If you require higher level care than what a Home Care Package can offer, they may assess you as needing entry into an aged care home.

Checklist for a face to face assessment

To prepare for your face to face assessment, make sure to have:

• Medicare card and a form of identification, for instance, Department of Veterans’ Affairs (DVA) card, driver’s license, passport, or healthcare card
• Notes or referrals from your doctor
• Ask a support person to be present for the assessment if you want
• Prepared questions and information about aged care that you wish to discuss with the assessor so you have a better understanding about services
• Contact details for your doctor and any other health professionals you see regularly
• Information on support you receive from others or from the community
• Have a translator or Auslan interpreter pre-organised if you require it

What to expect

You may need to fill out an Application for Care Form which will be provided by the assessor.

You can expect a conversation with the assessor asking you about your needs or any health problems.

They will ask you about any support you receive, your current lifestyle, any health concerns or chronic illnesses, how you deal with day to day tasks at home, if you struggling with any cognitive issues or memory loss, whether you have problems at home or with personal safety, any activities you engage in with family or in the community, and they will ask if they can chat with your doctor.

If you have a family member, friend or carer with you, the assessor may ask you for permission to talk to them about any support they believe you might benefit from.

What next?

If you are eligible for CHSP service, you should be told during your face-to-face assessment.

However, if you are eligible for a Home Care Package, any short-term care options or nursing homes, there will be a period of time where your assessor reviews the information you provided and determines what option best suits you.

They will provide a recommendation to a “decision maker,” who will then make the final decision on your case.

You will receive a letter within two weeks of your assessment to let you know if you have been found eligible for aged care services.

Source:
This article was originally published on https://www.agedcareguide.com.au/information/assessing-your-needs. Reproduced with permission of DPS Publishing.

Integrity One Wealth Advisers  Pty Ltd

Key points:

• Star ratings for residential aged care homes are changing to a redesigned Compliance rating and incorporating care minute targets for Staffing ratings from November 1, 2025

• 271 stakeholders informed the design changes for the aged care Star Ratings system

• You can use the Find a Provider tool on the government website to gauge a provider’s quality of care

The Star Ratings system debuted in December 2022 and it was designed to help families find high-quality aged care providers.

The five-star scale was introduced in response to the Royal Commission into Aged Care Quality and Safety. It was meant to distil complex care metrics — Resident Experience (33%), Compliance (30%), Staffing (22%) and Quality Measures (15%) — into a digestible score.

Last week, the Australian Government Department of Health and Aged Care unveiled the Design Changes for Star Ratings for Residential Aged Care – Consultation Findings Summary Report.

The new report, informed by 271 stakeholders, such as older people, families, providers and advocates, confronts the widely reported issues with the Star Rating system.

A striking revelation to emerge from the report was the push for providers to be held accountable throughout the system.

Over three-quarters of the cohort demanded a provider’s Compliance rating drop across all its homes if it was issued a formal regulatory notice for significant or systemic non-compliance.

Although 64% of providers were supportive of the measure, they cautioned that home-specific factors — like a good manager or unique challenges — often outweigh corporate oversight.

They wanted to draw a line in the sand between small mistakes and major breaches, like neglecting resident safety, to avoid unjust punishment. The report acknowledges this but leaves the concern unaddressed.

Staffing, the lifeblood of aged care, emerges as another flashpoint. The consultation found 75% of stakeholders supported a cap of two stars on the Staffing rating for homes failing to meet both care minute targets — hours of direct care mandated per resident.

Among stakeholders, 87% expressed support for incorporating the 24/7 registered nursing requirement into the Staffing rating, with many advocating a two-star cap for non-compliance.

Yet, rural providers cried foul: workforce shortages, not negligence, often thwart them. They begged for exemptions, transparently flagged, lest they’re crushed by urban-centric rules.

Beneath these reforms lies a quieter, yet electrifying, thread: data integrity. Stakeholders didn’t just want new rules — they demanded the numbers be trustworthy.

The Staffing rating’s potency, they argued, hinges on accurate, reliable care minute data, especially when self-reported by providers.

Two-thirds insisted Compliance ratings rebound instantly once non-compliance is fixed, not linger in purgatory for 1 – 3 years.

The report’s call for transparent regulatory notices — 75% want System Governor notices published, 85% demand financial non-compliance hit ratings — doubles down, promising a window into a home’s soul.

The consultation leaves that gauntlet on the table, a test of whether the system can finally earn trust.

Finally, the report hints at a design revolution: half-star ratings and richer data. A narrow 51% endorsed half-stars for the Overall Star Rating, envisioning a ladder of incremental progress — 3.5 stars as a reachable rung, not a distant five.

The push for systemic accountability could unmask corporate culprits, staffing reforms might anchor care in reality and data integrity could rebuild faith among stakeholders. However, the report isn’t a one-size-fits-all solution for the sector.

The consultation’s 271 voices have spoken and their hopes and fears are now in the government’s hands. This year has set the stage for mass reforms, intended to make the landscape easier to navigate and safer for those seeking quality care.

Source:
This article was originally published on https://www.agedcareguide.com.au/talking-aged-care/the-aged-care-star-ratings-are-changing-heres-why. Reproduced with permission of DPS Publishing.
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Integrity One Wealth Advisers  Pty Ltd

Integrity One Wealth Advisers  Pty Ltd

The number of Australians aged over 65 is expected to more than double in the next 40 years while the number of people aged over 85 is predicted to triple in that time.

Aged care funding and services have seen major changes in the years since the 2021 report of the Royal Commission into Aged Care Quality and Safety, and this year is no exception.

1 July 2025 marks the start of a host of new programs and improvements for the aged care sector. Several announcements have already been made this year, covering wage rises for aged care workers and nurses, and an increase in government funding for residential aged care accommodation.

In one of the most significant changes, the new Aged Care Act begins on 1 July. The Act aims to ensure the viability and quality of aged care.

A report by the Aged Care Taskforce last year calculated the residential aged care sector will need $56 billion by 2050 to upgrade facilities and build more rooms.

Current funding arrangements aren’t working. In the 2022-2023 financial year, almost half of all accommodation providers made a loss.

Some $300 million in federal grants will be delivered to accommodation providers this year to help with capital works upgrades.

And to improve the viability of the facilities the government is introducing other measures including larger means-tested contributions from new entrants and a higher maximum room price that is indexed over time.

Aged Care Minister Anika Wells says half of new residents will not contribute more under the new consumer contributions.

“For every $1 an older Australian contributes to their residential aged care, the government will contribute an average of $3.30,” says Wells.

Support at Home

The Aged Care Act also aims to support more people who want to stay in their own homes as they age. The federal government is investing $4.3 billion in a new Support at Home program, which replaces the Home Care Packages and the Short-Term Restorative Care programs.

There’ll be more 300,000 places available over the next 10 years and a shorter waiting period for Support at Home, and there’s a goal to simplify and improve the assessment process, making it easier to access different services as needs change.

Similar to the Home Care Package, Support at Home will provide:

• clinical care, such as nursing and occupational therapy
• help with maintaining independence including showering, dressing and taking medications
• support for everyday living tasks such as cleaning, gardening, shopping and meal preparation.

The government will pay 100 per cent of clinical care costs while Support at Home recipients will make a contribution towards independence and everyday living costs. The contribution amount will be calculated using the Age Pension means test and it depends on the level of support needed and the combination of income and assets. The highest classification with the most funding will receive a package of services worth $78,000 per year. There’ll also be funding for assistive technology and home modifications and end of life care.

A new cap on contributions will also apply. No one will pay more than $130,000 in their lifetime – whatever their means or length of care at home or in residential accommodation.

Refunding deposits

The new Aged Care Act also requires aged care accommodation providers to refund residents’ lump sum deposits within 14 days if they move to another facility or pass away. Interest must be paid on the lump sum until the amount is repaid. As before, some deductions are permitted provided they were included in the original agreement.

No disadvantage

For those already receiving home care packages or in aged care accommodation, the government says a ‘no-worse-off’ principle will provide certainty that they won’t have to pay more under the new laws.

Whether it is you or a loved one who is considering moving into aged care, it can be an emotional time. With these new changes being implemented, you may have a few questions. Please give us a call if you’d like to hear more about the changes or if we can help to assess your next step or plan ahead.

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Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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