Aged care reform

Page last updated: 23 February 2018

The aged care system in Australia is being reformed to ensure it is the best possible system, now and into the future.

Why aged care is changing

Aged care reforms are being progressively implemented in three phases over 10 years, so our aged care system can be sustainable and affordable, and be the best possible system for all Australians.

Achieved so far

Improvements have already been implemented to Australia’s aged care system. Read about the improvements so far, including changes to the Commonwealth Home Support Programme, Home Care Packages, expansion of programs, new supplements and more.

Aged Care Legislated Review

As part of the changes to aged care announced in 2012, a comprehensive review was included in the Aged Care (Living Longer Living Better) Act 2013. The Aged Care Legislated Review will look at the impact of the changes to date and where we need to take the system in the future.

Home Care Packages reform

The Home Care Packages Program has been the subject of significant reform to ensure that the Program evolves to meet the care needs to our older Australians.

Home Care fees

The Government pays for the bulk of aged care in Australia by paying subsidies and supplements for care to providers. However, consumers may be asked to contribute towards the cost of their care if they can afford to do so.

On 1 July 2014, the way fees for Home Care Packages are calculated changed.

Future care at home reform 

Outcomes from the public discussion paper consultation are now available.

Residential Aged Care Funding Reform

Work is underway to investigate alternative approaches to determining residential care funding that delivers more stable funding arrangements. The government has been engaging with the sector on the development of this longer term reform. 

Residential care fees, charges and payments

The Government pays for the bulk of aged care in Australia by paying care subsidies and supplements to providers. However, residents of aged care homes may be asked to contribute towards the cost of their care and accommodation if they can afford to do so. 

Aged Care Sector Committee

The Aged Care Sector Committee has been established to provide advice to government on aged care policy development and implementation and to guide the future reform of the aged care system.

Aged Care Financing Authority

The Aged Care Financing Authority (ACFA) provides transparent, independent advice to government on funding and financing issues in aged care. It is informed by consultation with consumers and the aged care and finance sectors.

Prudential Standards Review 

An independent review has been undertaken by Ernst and Young to determine the adequacy of existing legislation and prudential standards that are currently in place to regulate approved providers use of refundable accommodation payments. The Department is currently considering the recommendations against the Prudential Standards Review.


If you have questions about the content of the Prudential Standards Review  please email: