As part of the aged care reforms, there will be grandfathering arrangements for existing aged care residents and home care recipients. The flowcharts below explain when grandfathering applies to residential care and home care from 1 July 2025.

Contributions refer to the means-tested care fee under the current rules and the hotelling supplement contribution and non-clinical care contribution under the new rules.

Residential care grandfathering

Home care grandfathering

Home care transitional participant contribution

Residential care grandfathering for grandfathered home care

Challenger 30 January 2025
UPDATE: On 4 June 2025, the Australian Government announced its intention to defer the commencement of the new Aged Care Act to 1 November 2025 and has recommended that the Governor-General formally proclaim this revised start date. While the details and examples provided in this article remain accurate for the legislation as enacted, advisers should be aware that the effective date is now proposed as 1 November 2025.
Challenger Technical will provide further updates once the formal proclamation is issued. In the meantime, please consider this timing change when preparing aged care strategies for clients planning to enter care in the second half of 2025.

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