What's New From 1 November 2025 — Aged Care Fee Changes Explained (Copy)
Aged care fee rules changed on 1 November 2025. If a family member entered permanent residential care before that date, their fees are governed by the rules in place when they entered — not these new ones. This guide covers what changed, and who it applies to.
A more detailed threshold structure
Previously, aged care means-testing used a smaller number of asset and income thresholds. From 1 November 2025, the structure uses a longer sequence of threshold bands — moving through a First, Second and Third Asset Threshold, and a First, Second, Third and Fourth Income Threshold — to calculate what a resident contributes.
The effect is a more gradual, stepped calculation rather than a small number of broad bands.
A new contribution: the Non-Clinical Care Contribution
For new residents entering from 1 November 2025, a new fee applies alongside the existing accommodation and hotelling costs: the Non-Clinical Care Contribution (NCCC). This covers personal care and everyday activities, and applies where a resident's assets or income exceed set thresholds.
The NCCC has its own daily cap, annual cap, and lifetime cap, and a four-year limit applies — the fee stops being charged after four years even if the lifetime cap hasn't been reached.
Retention now applies to lump-sum payments
For residents entering from 1 November 2025, facilities can deduct a retention amount of 2% per year, for up to five years, from any lump sum (RAD) paid for accommodation. This is deducted monthly from the reducing balance.
The Daily Accommodation Payment rate
If part or all of the room cost is paid as a daily rate (a Daily Accommodation Payment, or DAP), that rate is set using the government's Maximum Permissible Interest Rate (MPIR). The MPIR is reviewed quarterly. As at 1 July 2026, it is 8.43% per annum. This rate is fixed at the date a resident agrees a room price with their provider — later changes to the MPIR don't affect an existing DAP.
What stays the same
The Basic Daily Fee — payable by everyone regardless of means — is unaffected by these changes. The choice between paying for accommodation as a lump sum, a daily payment, or a combination of both also remains available.
What this means for your family
These changes only apply to people entering permanent residential care from 1 November 2025 onward. If your family is weighing up timing, or already navigating a fee structure and unsure which rules apply, a Statement of Facts can set out exactly how the current rules apply to your specific position.