Australia’s once-in-a-generation Aged Care Reforms have been delayed, with a recent announcement advising the new Aged Care Act will be pushed from 1 July 2025 to 1 November 2025. While four months might not sound like much, it buys older Australians and their families precious breathing space to revisit budgets, update legal documents, and weigh up care options before the new fee structure arrives. The Albanese Government says the short deferral will help “ensure older people accessing home care services continue to receive safe, quality care and have the time to understand the Support at Home changes.” By pressing pause, Canberra aims to avoid the confusion that often follows large-scale legislative change – and gives you a chance to get ahead of the curve. Let’s review what the reforms contain, why they were pushed back, and – most importantly – how you can seize this window to future-proof care and finances for yourself or a loved one.
Overview of the Aged Care Reforms
If you missed our earlier articles on this topic – Aged Care Fee Reforms – Your Pre-1 July Checklist and Aged Care Fee Reforms: What You Need to Know – here’s a quick refresher. The new Act overhauls funding for both residential and in-home aged care services. For residential care, accommodation caps jump to $750,000, RADs attract a 10 per cent retention fee over five years, and a three-part daily fee model splits costs into everyday living, fully-funded clinical care, and means-tested non-clinical care. Home-care clients will transition to the Support at Home program, which offers ten funding levels and separates clinical, independence, and everyday living support. Full pensioners contribute as little as 5 per cent on independence services, while self-funded retirees pay up to 80 per cent. A lifetime cap on non-clinical contributions (across home and residential care) rises to $130,000. Bottom line: once the clock strikes 1 November, new entrants could face noticeably higher out-of-pocket costs unless their planning is watertight.
Why the Government Has Delayed Aged Care Reforms
According to an open letter from the new Minister for Aged Care and Seniors, Hon Sam Rae MP, feedback from providers, advocacy groups, and older Australians revealed that the original July deadline left insufficient time to update digital systems, train staff, and educate consumers. A brief pause, Rae argued, will smooth the rollout of the Support at Home program, tighten up the Act’s rules, and – crucially – protect the rights of care recipients by baking in a clearer Statement of Rights and Statement of Principles. Industry bodies have largely welcomed the move, provided it is the last delay and not an excuse to lose momentum. For Canberra, the four-month hiatus also avoids a launch that could have strained providers already grappling with workforce shortages.
What the Delay Means for You
From a planning perspective, 1 November 2025 is not far away – but it is long enough to make important preparations. Start by revisiting the ten-point checklist in our March article and prioritise any gaps: update wills, refresh advanced care directives, and confirm Enduring Power of Attorney arrangements. With markets still adjusting to interest-rate uncertainty, review your investment mix and cash-flow forecasts to ensure you can fund either a lump-sum RAD or ongoing Daily Accommodation Payments under the new rules. If home care is on the cards, compare Support at Home package levels against your projected needs and consider bringing forward major home modifications while GST-free arrangements remain unchanged. Importantly, use this window to tour facilities, ask pointed questions about their pricing policy under the three-part fee model, and lock in a place if entering care before November could save you money. Finally, involve adult children early: clear expectations now can prevent stressful decision-making later. Professional advice can turn the delay into a strategic advantage – and help you avoid a last-minute scramble come spring 2025.
Turn Extra Time into Peace of Mind
The Aged Care Reforms being delayed for 4 months is more than just a calendar tweak – it’s a second chance to align your care preferences, finances, and legal safeguards with the new reality of Australia’s aged care landscape. Don’t wait for November to creep up – reach out to Priority Advisory Group’s specialist Aged Care team today for a personalised roadmap. Call 1300 349 188 or visit our contact page to book your consultation.