There’s a quiet revolution happening in the world of aged care, and it’s set to change the way many Australians spend their later years.
If you have elderly parents or you’re starting to think about your own future, now’s the time to get across these changes because they could affect everything from your family’s living arrangements to the broader housing market.
The federal government’s new Support at Home program, a centrepiece of its aged care reforms, was originally slated for July 2025 but has now been pushed back to 1 November 2025.
The delay is designed to give providers more time to prepare, but it also gives families a little breathing room to understand what’s coming and how it might impact them.
So, what’s actually changing? And will these reforms really help ease the housing crisis, or are we just shuffling the deck chairs on the Titanic?
Support at Home: What’s in the box?
The Support at Home program is set to replace several existing schemes, including Home Care Packages and Short-Term Restorative Care, rolling them into one streamlined system.
The goal? To make it easier for older Australians to access in-home support – everything from nursing and personal care to cleaning, medication management, and home modifications.
On paper, it’s a win for independence. More people will be able to stay in their own homes and communities for longer, maintaining routines and social connections that are so vital for wellbeing.
As Natalie Yan-Chatonsky, founder of Full Time Lives, puts it: ‘Ageing-in-place can be an excellent option for older Australians who wish to stay in their longstanding homes and communities.’
‘Remaining in their familiar surroundings where they have established routines for their physical activities and connected social networks allows people to maintain their independence, reduce risk of loneliness and significantly improve their overall quality of life and wellbeing.’
But, as with all things in life, the devil is in the detail.
The reality check: Gaps, delays, and family pressure
While the new system promises more support at home, there are already concerns about whether that support will arrive on time, or at all.
Delays to the rollout and long-standing backlogs mean tens of thousands of older Australians are currently waiting for services.
And as Yan-Chatonsky points out, ageing in place only works if the home is safe and suitable. ‘If they choose to remain in their homes, they need to ensure it’s modified to prevent falls. Particularly important since 6 out of 10 falls for older people happen at home. Good design means they don’t have to sacrifice style for functionality.’
For many, home maintenance becomes a burden as mobility declines. People may go out less, withdraw socially, or struggle with daily tasks.
This is where families often step in, taking on roles that can be emotionally, physically, and financially taxing, especially if they don’t live nearby.
And all of this is happening against the backdrop of a housing market under immense pressure. There simply aren’t enough homes – let alone purpose-built aged care options – to meet the needs of an ageing population.
A personal story: When home isn’t enough
Take Nathan, for example, who recently had to move an elderly family member into aged care. ‘Unfortunately, despite having access to some in-home support services, his dementia got to the point where we weren’t confident he would be safe living alone at home.’
‘He also needed a lot of additional emotional support, most days included dozens of phone calls from him.’
Nathan found that the gaps in support, combined with his own commitments to work and young children, meant that staying at home was no longer viable. Navigating the complex aged care system was overwhelming, especially when faced with an unexpected $40,000 bill from the aged care home.
‘Once I met with an Adviser it set a path for me, with a clear direction on what financial actions I needed to take and the implications for his RAD payments and continued support.’
Big changes to residential aged care costs
While Support at Home focuses on in-home support, there are also significant financial changes coming to residential aged care from 1 November 2025. These changes relate to means testing and accommodation payments.
Kerri Mendl, Managing Adviser at Alteris, explains: ‘The means tested portion of the care fees is changing—which means more people will now pay the maximum co-contribution towards their cost of care. The maximum means tested fee under the current system is just over $34,000 a year / $82,000 lifetime, but now the maximum is almost $42,000 a year / $130,000 lifetime.’
Currently, you only pay the maximum if you have more than $2 million in assets. Under the new rules, anyone with over $1 million in assessable assets will be required to make the maximum payments—meaning many more people will be affected.
On top of that, new rules will introduce a retention amount on the Refundable Accommodation Deposit (RAD). ‘New agreements from 1 November 2025 will introduce a retention amount. 2 percent of the RAD balance will be retained each year for the first five years,’ says Mendl. That means a maximum of 10 percent could be withheld if someone stays in care for five years – a substantial change to consider when planning your estate or managing cashflow.
If you’re considering residential care soon, locking in the current arrangement and thresholds could have considerable financial benefits.
The uncomfortable conversation: Planning ahead
Whether your parents are fiercely independent or starting to need more help, there’s a strong case for having the uncomfortable conversation sooner rather than later.
Care costs can be considerable when health declines, especially if you’re paying out of pocket and have missed out on accessing Support at Home care.
It’s also worth reviewing whether their home is fit for ageing, not just structurally, but emotionally.
Are they isolated? Are the stairs, garden, or upkeep wearing them down? Could there be a better quality of life in a purpose-built environment with social support built in?
Many older Australians, like my own stubborn grandfather, insist they’re better off at home. But sometimes, the reality doesn’t match the dream.
When the house becomes too much to manage, or social connections fade, staying put can become a form of self-imposed isolation.
Credit: Australian Government Department of Health Disability and Ageing / Instagram
Will these changes help the housing crisis?
Here’s the million-dollar question: will keeping more older Australians in their homes for longer free up housing for younger generations? The answer is complicated.
On one hand, supporting people to age in place can delay the need for residential care and reduce pressure on aged care facilities.
On the other, it may mean fewer family homes coming onto the market, as older Australians stay put for longer. And with the new means testing thresholds, more families may find themselves needing to sell the family home to fund care costs anyway.
What’s clear is that Australia needs more options – from well-designed, accessible homes to innovative models of multigenerational living and community-based care.
The Royal Commission into Aged Care made it clear: our system needs to be dignified, community-focused, and future-ready.
What should you do now?
- Start the conversation early with your family about care preferences and financial planning.
- Review the suitability of your (or your parents’) home for ageing in place.
- Seek advice from an Aged Care Specialist to understand the financial implications of the upcoming changes.
- Consider locking in current arrangements if residential care is on the horizon.
The new Support at Home program and changes to residential care costs are a step towards a more flexible, person-centred system. But there’s still a long way to go before every Australian can age with dignity, connection, and security.
Have you or your family started planning for aged care? Are you worried about the impact of these changes on your finances or living arrangements? We’d love to hear your thoughts and experiences in the comments below – your story could help others navigating the same journey.
Also read: Calls for urgent home support packages after aged care reform delay
