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Australia delays major aged care overhaul to November 2025

Officials say the extension secures smooth implementation before new contribution rules take effect

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Overview

  • The Albanese government announced on June 4 that it will postpone the rollout of sweeping aged care reforms from July 1 to November 1, 2025.
  • Health and Ageing Minister Mark Butler said the extra months are needed to ensure IT systems and provider processes are fully prepared.
  • The reforms include higher means-tested contributions for new entrants, a new Support at Home program and a 'no worse off' guarantee for current recipients.
  • Peak bodies such as Ageing Australia and OPAN welcomed the extension, warning an earlier date risked provider payment failures and service disruptions.
  • Treasurer Jim Chalmers said the delay would cost about $900 million over four years, while Shadow Health Minister Anne Ruston condemned it as an 'embarrassing backflip'.