If you or a family member lives in, or is considering, a retirement village with on-site aged care, here's what actually changed, what it means for you, and what stayed the same.
Why the Laws Around Aged Care Changed
The reforms followed the Royal Commission into Aged Care Quality and Safety, whose 2021 final report documented widespread failures across the sector and made 148 recommendations for reform. The new Act implements the most significant of these, centred on a single principle: the rights of older Australians should be central to how aged care is designed and delivered.
The changes have been described by many in the sector as once-in-a-generation.
What's Changed?
A Statement of Rights
For the first time, older Australians accessing government-funded aged care have a legally enshrined Statement of Rights. This includes the right to:
- Make decisions about your own care and life
- Choose your care provider and how services are delivered
- Receive care free from abuse, neglect, and exploitation
- Have your identity, culture, and preferences respected
- Raise concerns without fear of reprisal
For residents in retirement villages with on-site nursing care, these rights apply to the aged care component of their living arrangement, meaning nursing home residents now have stronger legal protections than under the previous system.
The Support at Home Program Replaces Home Care Packages
From 1 November 2025, the Home Care Packages program has been replaced by the new Support at Home program. If you or a family member was receiving a Home Care Package before this date, you've been transitioned into the new program.
The new program is designed to be simpler and more flexible, with a single assessment pathway for all home-based care. It's means-tested, and the amount you contribute to your care costs depends on your income and assets.
What this means for retirement village residents: If you live in an independent villa at a village like ours and receive in-home support services, those services now fall under the Support at Home program rather than the old Home Care Package framework. Your provider should have contacted you about this transition. If you have questions, My Aged Care (1800 200 422) is the central government resource.
New Fee Structures for Residential Aged Care
If you or a loved one lives in, or is considering, a nursing home or high-care residential facility, the fee structure has changed under the new Act.
Key figures as of early 2026:
- Basic Daily Care Fee: $66.80 per day (approximately $24,382 per year). This is paid by every resident and is set at 85% of the single basic Age Pension. It is indexed twice yearly (March and September).
- Refundable Accommodation Deposit (RAD): The national average RAD is now above $570,000. For residents entering after 1 November 2025, providers may retain up to 2% of the RAD per year for up to five years, meaning up to 10% may not be refunded on departure.
- Means-tested contributions: Residents with higher incomes and assets may be required to contribute additional funds toward everyday living and personal care costs. The amounts depend on individual circumstances and are assessed by Services Australia.
For residents who entered care before 1 November 2025, you generally remain under your existing fee arrangements. You won't automatically pay more unless you choose to opt into the new arrangements.
Strengthened Quality Standards
The new Act introduced updated Aged Care Quality Standards, which all providers, including nursing homes operating within retirement villages, must now meet. These standards place greater emphasis on outcomes for residents rather than on processes, and they require providers to demonstrate that care is genuinely person-centred.
What Hasn't Changed for Retirement Village Residents
It's worth being clear about what the new Act doesn't affect:
- Your retirement village contract and fees are governed by state legislation (in Victoria, the Retirement Villages Act), not the federal Aged Care Act.
- Your ingoing contribution, monthly fees, and deferred management fee arrangements are unchanged.
- Independent living in a retirement village villa is not classified as "aged care" under the Act. The new rules apply specifically to the nursing home and home care components.
- Your community, your home, your neighbours; none of that changes.
What Do the New Changes Mean if You're Choosing a Retirement Village Now?
If you're currently in the process of selecting a retirement village, particularly one with on-site nursing care, the new Act is relevant for one important reason: the nursing home component of that village now operates under a significantly stronger regulatory framework. Providers are more accountable. Standards are higher. Residents have explicit legal rights.
For families concerned about the quality and safety of nursing care, these are meaningful improvements.
At Ageing in Place, all three of our villages, Mount Martha, Carrum Downs, and Berwick, include a fully operational on-site nursing home. Our care practices are aligned with the new standards, and we welcome any questions about how we operate.
Where to Get More Information
- My Aged Care: myagedcare.gov.au or 1800 200 422
- Seniors Rights Victoria: 1300 368 821 (free legal advice for older Victorians)
- Australian Government Department of Health, Disability and Ageing: health.gov.au/our-work/aged-care-act
Still Have Questions? Talk to Us
Navigating the aged care system, particularly when it's changing, is genuinely complex. Our team at Ageing in Place has helped hundreds of families work through these decisions, and we're happy to answer questions and point you in the right direction.
Call 03 9822 9505 or Contact Us
This article provides general information about the Aged Care Act 2024 and is current as of June 2026. It does not constitute legal or financial advice. Fees and thresholds are subject to indexation and may change. Always verify current figures with My Aged Care or an independent adviser.
