Aged Care · 2026 reforms

Aged care residents face fee contract deadline in October under new Act

○◔◑◕●

Keep an eye on it

Directly material for current residential aged care residents and their families. Existing additional and extra service agreements cease on 31 October 2026 — a hard deadline requiring a decision, and the government explicitly advises seeking financial advice before acting.

In a nutshell: Under Australia’s new Aged Care Act, existing additional and extra service agreements in residential aged care automatically cease on 31 October 2026. Residents may opt into new fee arrangements under the reformed system, but this choice is irreversible. The basic daily fee is currently $66.80 per day from March 2026, and the Maximum Permissible Interest Rate on accommodation bonds is 8.43% from July 2026. The government’s own MyAgedCare guidance states that residents may pay more under new arrangements and recommends consulting a financial adviser before deciding whether to opt in.

Spin Unspin

What they’re saying

The government’s communication of this deadline has been quiet relative to the scale of the affected population; many families with relatives in care may not be aware the clock is running.

The official advice to seek financial advice before opting in is notable — it signals genuine risk of worse outcomes for some residents if the decision is made without professional input.

Confirmed via MyAgedCare government site and Department of Health. Fee figures from official schedule. Legal and financial implications will vary per individual; general information only.

The new Aged Care Act and your aged care home fees | My Aged Care

Schedule of Aged Care Fees & Charges | Residential & Home Care | 2026

Do I care?

Ask whether your or your family member’s current agreement is an ’additional’ or ’extra service’ agreement and what the October transition means for fees.

Seek an SMSF or aged care specialist. The opt-in decision is irreversible; professional advice before 31 October is the government’s own recommendation.

Twelve weeks is tight for arranging financial advice and provider conversations; start now.

Was this relevant?

Noted