Page 7 - Wealth-Adviser-Issue-122 (FWP)

ISSUE 122
OCTOBER 2025

NAVIGATING

AGED CARE REFORM

RIGHTS, CHOICE AND FINANCIAL

RESILIENCE FOR AUSTRALIAN FAMILIES depositphotos.com

BY WEALTH ADVISER Key Aged Care Reforms: Rights, Access and New
Financial Realities
Introduction: The Changing Landscape of Aged The incoming Aged Care Act, taking effect on 1 November
Care in Australia 2025, constitutes a historic shift in Australia’s approach. It
Australians are living longer, and the challenge of embeds a rights-based framework designed to ensure that
preparing for aged care is becoming increasingly relevant for older Australians can access safe, high-quality care tailored
families nationwide. Projections suggest a 68% increase in to their needs. The Act is supported by significant govern-
the population aged 70 or above over the next two decades, ment funding, but the reality of means-tested contributions
leading to unprecedented demand for both home-based and more robust standards means financial realities are
support and residential aged care. The importance of coming sharply into focus.
planning ahead—whether for oneself or a loved one—cannot A central pillar of reform is the new Support at Home
be understated. Early preparation empowers families to program, which will replace the existing Home Care system.
manage transitions smoothly, secure an appropriate stan- This change reflects the nation’s broader commitment to
dard of living, and create contingencies for the unexpected. supporting older citizens to live independently for as long
In recent commentary, experts have reflected on the as possible. As the government’s official guidance notes,
importance of getting one’s affairs in order before a health “Support at Home is designed to help older Australians live
crisis arises: “This week, I got the news that my mother has longer in their homes. How much the individual contributes
dementia. It came shortly after my father received the same will depend on the services used and their assessable assets
diagnosis. This is a meditation on getting old and my regrets and income as determined by Services Australia.”
in not getting my parents’ affairs in order sooner.” The emo- Residential care will also see new fee tiers and
tional and practical stakes are clear, and with reform on the means-testing. The introduction of the Non-Clinical Care
horizon, many are seeking guidance to ensure their choices Contribution (NCCC) ensures that those with greater means
will lead to peace of mind and dignity in later life. contribute more toward their care needs—up to a lifetime

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