Aged care is changing. The team from OzPlan Financial Services at MB+M explains the three most important reforms coming into effect 1 November* – and what they mean for you.
Q: What is changing in aged care from July 2025?
There are three major changes families should understand.
1. RADs will no longer be fully refundable
If a person lives in residential aged care for more than five years, 10 per cent of their Refundable Accommodation Deposit (RAD) may be retained by the facility. Until now, RADs have been 100 per cent refundable, so this is a significant shift.
2. Room prices will be capped
A national maximum price of $750,000 will apply to standard rooms. This aims to improve affordability and reduce pricing inconsistencies across providers.
3. New ‘Support at Home’ program will replace current in-home care systems
This simplified model will offer more flexible funding levels, better access to services, and improved support such as home modifications, equipment, and assistive technology – all designed to help older Australians stay in their own homes for longer.
While this all sounds scary and negative, it is important to remember the government is still the key funder of aged care; 73 per cent of residential care and 89 per cent of in-home support. These changes will help improve the quality of aged care and help service providers meet the growing demand.
Q: What should families do now?
If you think aged care might be needed in the next 12-18 months, now is the time to seek advice. These changes could affect affordability, estate planning, and care options – planning ahead means more choices and less stress.
Q: Have questions about your options?
If you require further information, please visit MB+M at 120 Nixon Street, call 5821 9177 or email us: mbmozplan@mbmgroup.com.au
This column contains general advice only and does not take into account the needs, objectives and situation of any individual. You should consult with a licensed financial advisor and consider obtaining personal financial advice prior to making any decisions about aged care. * Pending Goverment Approval
