Aged care costs are changing. Will it affect your family’s plans?
Written and accurate as at: Sep 15, 2025 Current Stats & Facts
Big changes are coming to aged care from 1 November 2025, and they could have a direct impact on your family’s plans. Whether you’re considering residential aged care yourself or are helping a loved one navigate the system, here’s what you need to know.
About the aged care changes
Under the current rules, some aged care residents have to pay an extra contribution known as the Means Tested Care Fee (MTCF). This is charged on a sliding scale depending on your income and assets, and it helps cover the cost of your personal and clinical care.
From 1 November, however, this will be abolished and two new fees will be introduced in its place:
- The Hotelling Supplement Contribution (HSC): this will go towards everyday living costs, such as food, cleaning and utilities.
- The Non-Clinical Care Contribution (NCCC): this will help pay for non-clinical services, such as lifestyle activities, bathing and mobility assistance.
Will you be paying more?
It’s expected that around half of new residents will pay more under the new fee structure.1 So if you and your family have been considering aged care, there’s a chance you’ll need to review your plans.
The amount new residents can expect to pay will vary depending on their income and assets, although both sets of fees will have maximum daily caps (indexed twice yearly). As at 20 September 2024, these were set at $12.55 per day for the HSC and $101.16 per day for the NCCC.
There will also be a lifetime cap on total NCCC payments of either $130,000 – an amount most residents will be projected to reach at the 3.5 to 4-year mark – or four years of NCCC payments, whichever comes first.
Exemptions for those already in aged care
Those already in residential aged care by 31 October 2025 (including those changing facilities from 1 November 2025) will be able to maintain their existing arrangements under grandfathering rules.
The same goes for anyone who was approved, receiving or waiting for a Home Care Package as at 12 September 2024 and entering residential aged care from 1 November 2025.
In other words, if you fall into one of these categories, you’ll continue to pay the MTCF unless you opt-in to the new system. For those not yet in aged care but considering it, that means it might be worth bringing your plans forward before the new fee structure takes effect.
Changes to the Home Care Packages Program
Also starting on 1 November, the current Home Care Packages Program and the Short-Term Restorative Care Programme will be replaced by a new Support at Home program.
Instead of the income test currently used for home care, personal contributions will be calculated using existing Age Pension income and assets tests. For non-pensioners, it will be up to them to provide Services Australia with information about their income and assets, otherwise the maximum rates will apply.
Given the complexity of aged care fees and the possibility your family might be faced with higher out-of-pocket costs, it’s a good idea to speak to a financial adviser. They can help you understand how the new rules might apply to your unique situation.
Source
1 MyAgedCare