Old rules or new rules after a hospital stay, a move or opting in

New aged care rules started on 1 November 2025. People who were already in an aged care home before then mostly kept their older arrangements. But some events can move them onto parts of the new rules, and one choice can't be undone.

This guide explains what changes what, so you can check before a hospital stay, a move or a decision to opt in.

Two separate sets of arrangements

It helps to know that there are two things that can be "old" or "new":

• Fee arrangements: how the daily fees and means-tested amounts are worked out.
• Accommodation arrangements: the rules for paying for the room, including whether retention is taken from a lump sum and whether a daily payment is indexed.

They can change at different times, for different reasons.

If your parent stays where they are

A resident who was in care before 1 November 2025 stays on their existing fee and accommodation arrangements, unless something below changes them.

Hospital stays and other breaks

• Care fee arrangements (how the care fees are worked out) stay the same after a break in care, however long. The rules for the room are different, as the next point explains.
• Accommodation arrangements can change if your parent leaves care for more than four weeks and then comes back. For someone who first moved in between 1 July 2014 and 31 October 2025, re-entering after a break that long brings the new room rules, so retention and indexation can apply.
• For someone who first moved in before 1 July 2014, a break doesn't change the room rules. Only opting in and then moving to another home does that.

A normal hospital stay is usually taken as leave from the home. Your parent keeps their place and their arrangements. Check with the home how a long hospital stay is being recorded, because it matters whether it counts as leave or as leaving care.

Moving to another home

• Without opting in: a resident on the older arrangements who moves to another home generally keeps their fee and accommodation arrangements, as long as there's no break of more than four weeks.
• After opting in: a resident who has opted in to the new fee arrangements moves onto the new accommodation arrangements once the new home's accommodation agreement is signed. Daily payments are then indexed. For people who first entered care between 1 July 2014 and 31 October 2025, retention also applies. For people who first entered before 1 July 2014, retention doesn't apply, even after the move.

Opting in to the new fee arrangements

Your parent can decide to switch to the new fee arrangements whenever they like. This is called opting in, and it can happen while they stay in their current home or when they move.

• It can't be undone. Once your parent opts in, they can't go back.
• If they opt in and stay put, their fees are worked out under the new rules, but their room arrangements don't change.
• If they opt in and later move, the new room rules apply at the new home, as above.

Whether opting in leaves someone better or worse off depends entirely on their situation. The new arrangements have different contributions and caps. For some people it makes little difference. For others it can cost a lot more. It's a decision to take slowly, with advice.

To opt in, your parent signs a form and gives it to the home, which sends it to Services Australia. Services Australia then sends a letter showing the new fees and when they start.

People covered by the "no worse off" rule

People who were getting, or had been approved for, a home care package on 12 September 2024 and who move into an aged care home after 1 November 2025 generally pay fees under the older 1 July 2014 arrangements. But the newer room rules still apply to them, so retention and indexation can apply. Our guide to moving from a Home Care Package explains this group.

Before any change

Check with the home and Services Australia before a move, a long break or opting in, and get advice if the amounts are large. Services Australia can explain what would change in your parent's fees. A licensed financial adviser who specialises in aged care can compare both arrangements for your family.

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