The New Aged Care Act, which will come into effect from 1 November 2025, will significantly impact the burgeoning elderly population. Although there will be no extra charges for clinical care such as nursing, but for new entrants to the aged care system, many of the everyday supports older people rely on will be classified as “non-clinical” and will be subject to co-payments.

At a time of rising cost of living, this is bad news for many elderlies and their care givers. Budgetary pressures from rapidly escalating health costs have forced the Government to act to keep the country’s finances sustainable.

It is estimated that under the new Support at Home scheme, pensioners, part-pensioners and self-funded retirees will be paying around $50 for an hour of personal care, such as showers and help with hygiene, and around $75 an hour if they need help with cleaning, laundry and cooking.

There are also changes in residential care (nursing homes) for new entrants who will be means-tested to determine whether they will pay a “non-clinical care contribution” for care like bathing, mobility assistance and lifestyle activities, up to a daily limit of $100 a day.

A daily “hotelling supplement” for meals, laundry and cleaning at the facility may also have to be paid by some residents.

Another change relates to Refundable Accommodation Deposit (RAD) which families pay to secure a room in residential aged care facilities: providers can now keep 2 per cent per year, with a maximum of 10 per cent over five years.

Undeniably, the changes outlined by the Government will cost more going forward. Higher costs for services will increase the burden of care on family members and strain their finances and psychological strains. What is required is thoughtful planning to manage old age to maintain independent lifestyle as long as possible, with dignity.

The downside of the policy changes is that elderly people may be forced to admit themselves prematurely in hospitals if they cannot be cared for at home; especially if there is a shortage of aged-care beds in privately owned facilities.

On the brighter side, the release of 40,000 additional Home Care Packages will significantly reduce the waiting list which reached 87,597 by March 2025: 20,000 will be released by November 1, 2025, followed by another 20,000 by December 31, 2025. Consequently, the care needs of more elderly people can be addressed promptly.

The Auwal Care Inc (ACI) Annual General Meeting on 21 September 2025 was overshadowed the imminent change in the policy setting. ACI, a not-for-profit charity, advocates for the needs of the elderly who do not receive adequate care, some of who reside in nursing homes where services they receive are either culturally insensitive or fall short of Islamic best practices.

“ACI is currently researching health and social wellbeing of Muslims in the +70 years age group to identify gaps in services. With evidence-backed data, it intends to advocate to relevant agencies and collaborate with other providers to achieve better outcomes for our vulnerable elders”, said Haji Shayum Rahim, the Chairman of ACI.

The survey is anonymous and readers who want to learn more about this can email ACI: imam.ali@auwal.org.au