Navigating the November 2025 Aged Care Reforms in South Australia
Executive Summary
Australia’s aged care system has undergone its most significant reform in decades. Following the findings of the Royal Commission into Aged Care Quality and Safety, the Federal Government introduced sweeping changes to improve transparency, access, and long-term sustainability.
From 1 November 2025, the new Aged Care Act fundamentally changed how care is assessed, funded, and delivered across Australia, including South Australia.
One of the most notable changes is the replacement of the Home Care Package (HCP) system with a new program known as Support at Home.
For families across Adelaide—from North Adelaide and Walkerville to Brighton and Glenelg—understanding these changes is essential when planning for future care needs.
A common question families ask is:
“Will aged care cost more under the new system?”
The answer depends on several factors, including your assets, income, and whether you were already receiving government support before the reforms were introduced.
This guide explains the key changes and what they mean for South Australians planning aged care support for themselves or their parents.
The End of Home Care Packages
The Previous System
Before November 2025, many Australians accessed support through the Home Care Package program, which provided funding across four levels of care.
Level 1 – Basic support
Level 2 – Low level care
Level 3 – Intermediate care
Level 4 – High level care
While helpful, the system had several well-known challenges.
Long waiting periods
If someone required additional support, they often needed to wait months to move from one package level to another.
Funding inefficiencies
Unused funds could accumulate within packages, even while others waited for support.
The New Support at Home Program
The new Support at Home program has been introduced to create a more flexible and responsive system.
Rather than four levels of funding, the new structure includes eight classification levels, allowing support to increase gradually as care needs change.
The objective is to help older Australians remain in their homes longer while reducing pressure on residential aged care facilities.
This is particularly important in South Australia, where the population is older on average than many other states.
Understanding the “No Worse Off” Principle
For Australians already receiving government aged care support, the reforms include a protection mechanism known as the “No Worse Off” principle.
Who is protected?
Individuals are generally protected if they were:
Already receiving a Home Care Package; or
Approved for a package before the reform transition date.
What this means
Protected recipients will generally:
Continue to pay contributions under the previous rules
Transition to an equivalent or higher funding level under the new system
This provision was designed to ensure existing recipients are not disadvantaged by the reforms.
Key Components of the New Funding Model
Under the Support at Home program, services are grouped into three categories.
1. Clinical Care
Clinical services such as nursing, physiotherapy, and medical support are fully funded by the government.
Examples include:
Wound management
Allied health services
Nursing support
These services are generally provided without direct cost to the recipient.
2. Independence Support
This category includes services that help individuals maintain independence at home.
Examples include:
Assistance with showering or dressing
Mobility support
Personal care
Contributions toward these services are means tested, meaning higher-income retirees may pay a greater share of the cost.
3. Everyday Living Support
Everyday living services include assistance with general household tasks.
Examples include:
Cleaning
Gardening
Meal preparation
Shopping assistance
Under the new framework, individuals with higher assets or income may be expected to contribute more toward these services.
Changes to Approved Services
Another feature of the reform is the introduction of a clearer inclusion list, which outlines what services government funding can be used for.
Some services that were previously funded may now fall outside the approved list.
The focus is now more closely aligned with health, safety, and independence needs.
Means Testing and Financial Assessment
Eligibility for subsidised aged care services is determined through a financial assessment.
This review considers both:
Income
Assets
While the family home continues to receive favourable treatment in the assessment, other financial assets such as superannuation, investments, and savings are included.
For self-funded retirees, this means contribution levels may differ depending on personal financial circumstances.
Residential Aged Care Considerations
While many Australians prefer to remain at home for as long as possible, residential care may eventually become necessary.
When entering residential aged care, costs generally include:
Accommodation
Care services
Daily living expenses
Accommodation costs are typically paid through either:
Refundable Accommodation Deposit (RAD)
A lump sum payment that is refunded when the resident leaves the facility.
Daily Accommodation Payment (DAP)
An interest-based daily payment if the RAD is not paid upfront.
Families often consider whether it is financially beneficial to pay a lump sum or retain investments and pay the daily fee.
Planning for Aged Care Costs
With the shift toward greater personal contributions for some services, financial planning plays an important role in preparing for future care needs.
Strategies may include:
Structuring investment portfolios to generate reliable income
Reviewing superannuation drawdown strategies
Considering access to home equity if required
Planning for potential residential care accommodation costs
A structured financial plan can help ensure care needs are met while also protecting long-term wealth and estate objectives.
Starting the Conversation Early
One of the biggest challenges families face is simply starting the conversation about aged care.
Planning early can make a significant difference.
Registering with the government aged care system before support is urgently needed may help avoid delays later.
Having these discussions early also allows families to make thoughtful decisions rather than responding under pressure during a health crisis.
Final Thoughts
The 2025 aged care reforms represent the most substantial changes to the Australian aged care system in many years.
While the new framework aims to improve flexibility and access to support, it also introduces new financial considerations for many retirees.
Understanding how the system works and planning ahead can help families make informed decisions about care options and financial sustainability.
For a compassionate and comprehensive review of your family’s aged care strategy, speak with an Adelaide Financial Advisor at ODV Private Wealth today on (08) 8352 2522 or email planning@odvwealth.com.au.
General Advice DisclaimerThe information on this website is general in nature and does not take into account your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for you and read the relevant Product Disclosure Statement (PDS) before making any investment decision. ODV Private Wealth Pty Ltd ABN 28 679 606 583 | Corporate Authorised Representative (No. 001313599) of Humble Goode Financial Pty Ltd AFSL 349026.