The Australian Aged Care System Explained (2025)
Australia's aged care system underwent its biggest transformation in decades in 2025. If you're navigating it for yourself or an older parent, this guide explains how everything works in plain English.
The Big Change: Support at Home (November 2025)
From November 2025, the previous Home Care Package (HCP) system was replaced by the new Support at Home program. The change aims to simplify access, give people more control over their care, and better match funding to individual needs. If you were already receiving a Home Care Package, you transitioned to Support at Home automatically.
The Three Pathways Into Government-Funded Aged Care
| Program | For Who | How to Access |
|---|---|---|
| Commonwealth Home Support Programme (CHSP) | People who need a small amount of help at home | My Aged Care assessment |
| Support at Home | People who need more ongoing support to remain at home | ACAT assessment via My Aged Care |
| Residential Aged Care | People who can no longer safely live at home | ACAT assessment + placement |
Step 1: Contact My Aged Care
Every aged care journey starts at myagedcare.gov.au or by calling 1800 200 422. My Aged Care registers you in the system, connects you with the right assessment team, and provides access to the service finder.
Step 2: Get an Assessment
A trained assessor will visit you (or your parent) at home to understand your needs. They assess physical function, memory and cognitive status, social situation, and existing support. The assessment determines what level of government-funded support you're eligible for.
Step 3: Choose a Provider
Once approved, you choose your own service provider. This is an important decision — management fees, service quality and staff availability vary significantly between providers.
Understanding Aged Care Costs
Government-funded aged care is not free — means-tested co-contributions apply. For Support at Home, there's a co-contribution based on your assessable income and assets. For residential care, there's the basic daily fee (paid by everyone), a means-tested care fee and accommodation costs (RAD or DAP).
The Star Rating System for Residential Care
Since 2022, all residential aged care homes receive a star rating (1–5 stars) covering residents' experience, staffing levels and regulatory compliance. Always check the star rating at myagedcare.gov.au before choosing a residential care facility.
The aged care system changes frequently. Always verify current information at myagedcare.gov.au. This guide is correct as of June 2025 but may not reflect subsequent changes.
Free Senior Planning Guide
Practical guides to retirement, aged care and financial planning — straight to your inbox.