Families given a few more months for aged care financial planning
The Federal Government has announced a delay to implementation of the New Aged Care Act, including significant increases to aged care fees. Originally set to take effect on 1 July 2025, the start date has now been pushed back to 1 November 2025.
This delay gives the Government, aged care providers and families more time to prepare for the sweeping changes ahead—but it also creates a short window of opportunity for individuals and their families to review their aged care strategy and save significant money on aged care costs.
What’s changing and when?
Here’s what the revised timeline means in practical terms:
- For residents entering permanent residential care from 1 November 2025 onward, increased costs for Refundable Accommodation Deposits (RADs) and Daily Accommodation Payments (DAPs) will apply.
- The current means-tested fee structure will remain in place for anyone who moves into residential care before 1 November 2025, or for those who meet the criteria to be grandfathered into the old system.
- From 1 November, new residents who aren’t grandfathered (or who opt into the new system) will be liable for additional costs, including the hoteling contribution and a non-clinical care contribution.
What does this mean for you or your loved ones?
These delays may work in favour of many of our clients and their families who are grappling with aged care arrangements and costs as the winter months begin to take a toll. It gives you more time to:
- Better plan the transition between home care and into residential care
- Consider moving into aged care earlier to lock in the current, more favourable rules and costs
- Understand how the new fee structure may affect future care costs
- Seek advice tailored to your financial situation
Stay tuned for our updates on any further changes
It's worth noting that the Aged Care Rules are still in draft form, and more changes could be announced. At FMD, we’re keeping a close eye on developments and will share updates as they’re confirmed. In the meantime, if you or a family member are thinking about aged care, now is the perfect time to speak with one of our specialist advisers.
Your FMD adviser can put you in touch with us if you have a loved one with a growing need for residenital aged care. We can help you understand your options and make informed decisions —well ahead of the new November deadline.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.