The New Aged Care Act: Residential Aged Care
CONTENTS
Jump to the section you need
The New Australian Aged Care Act, Launching November 1, 2025
From 1 November 2025, residential aged care fees will change under the Aged Care Act 2024. These updates are designed to bring more clarity, fairness, and consistency to aged care funding.
Understand how the NCCC, HSC, and accommodation payment options work so you can confidently compare providers, plan your budget, and make informed choices. Aged Care Decisions is here to guide you through every step.
Last Updated: 27/10/2025
Residential Aged Care Changes: Who it affects
If you or a loved one enters residential age care on or after November 1, 2025, they’ll be part of the new system. People already in care will generally stay on their current arrangements, unless they choose to move to the new rules.
Who the changes apply to:
- Applies to: Anyone entering permanent residential aged care on or after 1 November 2025.
- Existing residents: People already in care before this date usually stay under their current fee arrangements, unless they choose to move to the new system.
- Assessments: Means assessments will continue to be completed by Services Australia or the Department of Veterans’ Affairs (DVA).
New Aged Care Fees: What’s Changed?
Important fee changes take effect from 1 November 2025 under the new Aged Care Act 2024.
This section explains what replaces the Means Tested Care Fee, how the new Non-Clinical Care Contribution (NCCC) and Hotelling Supplement Contribution (HSC) work, and what is changing with Refundable Accommodation Deposits (RAD) and Daily Accommodation Payments (DAP) to help families understand the new system with clarity and confidence.
Non-Clinical Care Contribution (NCCC)
The NCCC replaces the old Means-Tested Care Fee. It helps cover day-to-day personal support, such as help with dressing, bathing, or mobility.
Based on income and assets.
Daily cap: Around $101.61, indexed with inflation.
Lifetime protection: Payments stop after four years in permanent care, or once around $130,000 (indexed) has been paid in total.
This change ensures families can predict long-term costs and know there’s a limit to what can be charged.
Hotelling Supplement Contribution (HSC)
The HSC helps cover everyday living costs in an aged care home, such as meals, cleaning, laundry, electricity and water.
It is means-tested. This means the amount depends on income and assets. It also has a daily cap.
-
Based on income and assets.
-
Daily cap: Around $12.55, indexed with inflation.
This contribution separates living costs from care costs, making it clearer what each part of the daily fee covers.
Accommodation Payments
Accommodation payments cover the cost of your loved one’s room and facilities. Families can choose how they pay:
RAD / RAC: A lump-sum refundable deposit.
DAP: A daily payment.
Combination: Part lump sum, part daily payment.
Additional updates:
Providers can retain up to 2% of a RAD each year for up to five years (a total of 10%).
The DAP is indexed twice a year and may change when government rates are updated.
What to Check with Your Provider
Ask for a written breakdown, showing the basic daily fee, any NCCC, any HSC, and your accommodation option (RAD/RAC/DAP).
Confirm how often the DAP is indexed and how you will be notified of changes.
If you are considering a RAD, ask whether any retention applies, the rate, and how it is calculated.
Use your Services Australia assessment letter to verify every figure with the provider.
Aged Care Decisions can help guide you through these checks, explain aged care terms clearly, and help you find and compare homes with confidence.
Residential Aged Care Eligibility Criteria
Who can access residential aged care and how to get assessed
Residential aged care is designed for older Australians who can no longer live safely or comfortably at home, even with home care support. Access is based on an independent government assessment of your care needs, living situation, and overall wellbeing.
You may be eligible for government-funded residential aged care if you:
Are 65 years or older (or 50 years or older for Aboriginal or Torres Strait Islander people).
Find it difficult to manage daily activities such as bathing, dressing, cooking, or moving around safely at home.
Need ongoing personal or nursing care that can’t be met through Support at Home services.
Have been assessed as requiring permanent or respite residential care by the Integrated Assessment Tool (IAT) as part of the Single Assessment System.
How to Apply for Residential Aged Care
Simple steps to apply for government-funded residential aged care:
Start with My Aged Care
Visit myagedcare.gov.au or call 1800 200 422 to register and request an assessment.Complete an assessment
A trained assessor will meet you (at home or hospital) to understand your care needs and living situation.Receive your outcome letter
This letter confirms the type of care you’re approved for (e.g. permanent residential care, respite care, or home care).Find and compare aged care homes
Once approved, you can start comparing aged care homes that match your care needs, budget, and location preferences. Aged Care Decisions can help you compare options and guide you through fees at no cost.
How Aged Care Decisions Can Support You
Finding the right residential aged care home does not have to be complicated. Aged Care Decisions (ACD) helps you compare options, matching your care needs with providers. Choose with confidence and take control of your aged care journey.
Understanding your care needs
Our friendly team will ask you a few questions about your individual care needs and preferences, including location, level of care, room type, lifestyle and budget.
Unlimited 1-on-1 support
Unlimited 1-on-1 support from your designated Placement Specialist. We provide you with the most up-to-date Aged Care information and resources. We assist at every stage of your Aged Care journey.
Customised options list
Receive a personalised list of aged care providers matched to your care needs, preferences and location. We connect you or your loved one with residential aged care providers that offer the right level of care, comfort and support.
ACD assists tens of thousands of families each month
Yvonne
“When my own research to find possible Aged Care vacancies in my area, left me exhausted and overwhelmed, I finally left my contact details with Aged Care Decisions. They immediately contacted me and collected details about what I was in need of. Within minutes they had a list of possible options for me. With my permission, they send my enquiry to these Aged Care facilities. I had my first response by the following day and had arranged a tour of that facility.
Aged Care Decisions have been very professional, caring and helpful. Their follow-up has been excellent and they never made me feel pressured into decisions that I did not want to make. I would highly recommend them to those on the search for an Aged Care facility.”
Steve C.
“Aged care decision assisted in finding a care facility for my aged mother, which was located nearby family and friends and had a suitable vacancy. They were able to facilitate a preliminary visit for family to visit the care facility and saved us the headaches of finding somewhere with availability for respite and permanent care.
Heidi who assisted us, has continuously managed the the transition for my mother and our family during this very challenging period.”