What is changing from NOVEMBER 2025

Derived from the Royal Commission into Aged Care Quality & Safety and the new Aged Care Act, to be implemented this year.

  • Accommodation Calculations - Unchanged

  • Basic Daily Fee (85% of pension) - Unchanged

  • Current Means Tested Care Fees - Removed

  • Means Tested Amount to determine, Hotelling Contribution & or Non-Clinical Care Contribution - New

  • Daily Accommodation Payments will be indexed (twice a year) -New

  • Pre-entry or reservation fees for a room - New

  • Fees for higher everyday living - New

  • Part Retention of Accommodation deposits - New

  • Room Charges up to $750,000 (From 01 January 2025) without commissioner approval

FAQS RELATED TO 1 NOVEMBER 2025 CHANGES

How much is the Income Free area from 1/7/25?

Currently $32,819.

What does RAD retention mean?

From 1/7/25 – Any RAD (Refundable Accommodation Deposit) paid will be subject to a retention amount of 2% a year for up to 5 years.

What’s the cap on the “Non-Clinical Care Contribution” amount?

From 1/7/25 $130,000 indexed.

What happens if assets greater than $502,981 or income greater than $131,279?

From 1/7/25 - the maximum NCCC of $101.16 a day will be payable

What’s the 2% retention amount deducted monthly mean?

From 1/7/25 If you pay a lump sum toward accommodation in residential aged care – 2% per year can deducted paid monthly to the facility – nonrefundable for up to 5 years.

What is the threshold for paying the full accommodation price?

From 1/725 when Means Tested Amount (MTA) exceeds the Maximum Accommodation Supplement (MAS).

What is the new Hotelling Contribution from 1/7/25?

A new fee that if you have income or assets above set limits you will be assessed to contribute to the cost of your care. This is payable if assets exceed $238,000 or income greater than $95,400 or a combination and will be indexed. The maximum will be $12.55 a day ($4, 562.20) from July 25 and all new residents entering aged care will be tested for this fee.

How much is Hotelling Contribution?

$12.55 a day from 1/7/25

When could a Hotelling Contribution be charged to an Aged Care resident?

From 1/7/25 if the MTA amount is greater than the MAS (for any new residents).