CALL it a stealth tax or GST creep, but the fact is residents in aged–care facilities across the country will now be taxed on specific lifestyle choices. These range from better food, upgraded rooms, alcohol, in–room television services and personal Wi–Fi, to better linen, haircuts, higher–quality snacks, specialty coffee and hot breakfasts on demand, along with a host of small extras that make life just that bit more enjoyable at a time when they are arguably most deserved.
While core, every day and essential living services, such as basic meals, standard laundry, cleaning, personal care and clinical nursing, will remain GST–free, all other Higher Everyday Living Fee (HELF) services will incur a 10 per cent increase from November 1, 2026, when the change becomes fully universal.
Coinciding with a period when seniors have already taken a hit from changes to the federal government’s private health insurance rebate for over–65s, this shift could reportedly affect more than 100,000 residents and raise up to $250 million a year.
Taking the sheen off lifestyle choices for some and potentially making them unaffordable for others in residential care, these changes were introduced without public consultation, effectively creeping in by stealth. From 1 November 2025, amendments to the A New Tax System (Goods and Services Tax) Act 1999 introduced the HELF framework, quietly removing GST exemptions on premium lifestyle fees. By excluding these services from the GST–free list through a ministerial determination, they automatically became taxable under Australian law.
Once the grandfathering period ends on October 31, all legacy “Extra Service” agreements that were previously GST–free will expire, along with any notion that, after a lifetime of work and paying a fair share of taxes, older Australians might deserve a modest tax break on these well–earned extras.
