From 20 September this year, deeming rates will increase for the first time since the Covid-era freeze. This change may affect people whose payments and benefits are determined by the income test. The announcement confirms that rates will gradually return to ‘pre-pandemic settings’ with staged increases to take effect in the future. Increases will be realigned from 1 July to the same time that payments are indexed (expected to be 20 March and 20 September).

A significant update on the horizon is the transformation of the Home Care Packages Program in Australia, set to take effect from 1 July 2025.

The Government introduced new Aged Care Legislation to Parliament last month which includes major changes to both Home Care and Residential Aged Care, including changes to fees and charges from 1 July 2025.

A government task force looking into the aged care sector in Australia has recommended that those of us with the financial means should pay for our own living and accommodation costs. This would be a substantial change to what currently happens. Currently, the taxpayer covers most of the expenses for aged care – around 75% of residential care costs and 95% of in-home care costs.