Changes to Aged Care Costs for November 2025.
From the 1st November 2025, new residents moving into residential aged care on a permanent basis will be subject to the new fee structure. Any resident who is permanent prior to the 1st November will be grandfathered under the current rules.
Here is a summary of the changes coming 1st November 2025.
| ACCOMMODATION COSTS | |
| Current | New |
| RAD (Lump sum) is fully Refundable | RAD is subject to a Retention amount which is calculated at 2% pa on a reducing balance for maximum of 5 years |
| RAC (lump sum for supported residents) is fully refundable | RAC is subject to a Retention amount which is calculated at 2% pa on a reducing balance for maximum of 5 years |
| DAP (daily rate of interest) is not indexed | DAP (daily rate of interest) is indexed twice a year on the 20th of March and September. (Indexation is based on CPI) |
| DAC (daily rate of interest for Supported residents)- is not Indexed | DAC (daily rate of interest for Supported residents)- is not Indexed |
If you are not sure what is best for the person moving into care, call us to discuss with one of our specialists on 1300 556 287.
| CARE COSTS | |
| Current | New |
| Basic Daily Care Fee $65.55/day currently | Basic Daily Care Fee $65.55/day currently, (i.e. no change) |
| Means Tested Fee · Annual Cap of $35,238 p.a. · Lifetime Cap of $84,571 · Subject to means test NOT APPLICABLE TO SUPPORTED RESIDENTS (INITIALLY) | Replaced with 1. Hotelling Contribution up to $22.15/day 2. Non-Clinical Care Contribution (NCCC) · Maximum $105.30/day · Lifetime Cap of $135,318 or · 4 years in permanent care Subject to Means test NOT APPLICABLE TO SUPPORTED RESIDENTS (INITIALLY) |
| Extra Services Fee Can only be charged up to 1st November 2026 Residents can elect to switch to the HELF after 1/11/2025 | Replaced with Higher Everyday Living Fee (HELF) · Purely optional · Would need to sign a Higher Everyday Living Agreement (HELA) to confirm which services they require. |
| Additional Services Fee Can only be charged up to 1st November 2026 Residents can elect to switch to the HELF after 1/11/2025 | |
If you know someone moving into residential aged care & they are going to be Unsupported, they WILL save money if they become permanent BEFORE November 2025.
Grandfathered home care recipients – 12th September 2024
If the person moving into care was receiving a Home Care Package as at 12th September 2024 OR was on the national queue to receive a home care package as at 12th November 2024, will be grandfathered. If they move into care after 1st November they will be subject to the current Care Costs but will be subject to the new costs for Accommodation.
Grandfathered residents who move facilities after 1st November 2025.
If a resident was already permanent in an aged care facility prior to November 2025, who subsequently moves to another facility after 1/11/2025, will be grandfathered under the current aged care costs. Further if the resident leaves aged care for more than 28 days, for example, is discharged from their existing facility (e.g., goes home, then re-enters care later) will be subject to the new post November 2025 costs for aged care.
