Knowledge Centre
Aged Care Reforms 2025
Care Systems is helping it’s clients stay ahead of reforms with automated compliance, enhanced tools, and streamlined financial workflows for a seamless transition.
With the changes coming into effect on November 1st we have planned a series of Roadshow events to help our clients and other industry members transition; as well as some important information to help you transition easily including FAQs below specific to the reforms.

Upcoming Roadshow Events
More event announcements coming soon. Watch this space…
Pricing, Budgets and What’s Next
HELF, RADs and What’s Ahead for 1 November
Get the answers you need
Aged Care Reform Webinar – Q&A Summary
1. Will Care Systems release updated billing manuals reflecting the changes under the new Aged Care Act? If so, when will the manuals be ready?
Care Systems will update and supply Knowledge Base articles and billing manuals reflecting the changes under the new Aged Care Act before the 1 November 2025 go-live. These will be released once all relevant rules are finalised and reviewed to ensure accuracy and compliance.
2. What changes are coming to the audit requirements in the 2026 ACFR?
From 1 April 2026, metropolitan aged care providers (Monash Model 1/MM1) may face Base Care Tariff (BCT) funding reductions if they do not meet care minute targets. These withheld funds will be redirected to the Care Minutes Supplement, which can be reclaimed through compliance. Additionally:
- A mandatory Care Minutes Audit will be required.
- QFR data will integrate with ACFR.
- The ACFR audit timeline may be shortened to 180 days.
3. Will Care Systems update the software to handle RAD retention and DAP indexation?
Yes. RAD retention and DAP indexation functionality has already been implemented in the software. Care Systems is monitoring final rule releases and may temporarily disable these calculations until the November go-live to ensure alignment and avoid confusion.
4. Where can I view Services Australia letters within the Care Systems platform?
If you’re connected to Aged Care Web Services (ACWS), you can access Services Australia correspondence via:
ClientCare > Processing > Service Correspondence
5. Does Services Australia correspondence access require the new Client Maintenance screen?
Yes. Full functionality for viewing and processing Services Australia correspondence requires the updated Client Maintenance screen.
6. Regarding the new RAD monthly reporting due 1 July—can we test it beforehand, and is there a specific format?
Links
Useful Links for Aged Care Updates
Health: Updated Resources Page
Stay informed with the latest updates under the new Aged Care Act.
🔗 View Resources
New Quality Indicators
Access the latest manuals and documentation on mandatory quality indicators.
🔗 View Quality Indicator Program Manual
QFR and ACFR Changes
Understand recent updates to residential aged care financial reporting and care minutes funding.
🔗 View Webinar Slides
Changes to CHSP and DEX
Review the Stage 1 updates to the Data Exchange Dictionary impacting CHSP.
🔗 View Data Exchange Dictionary
Care Minutes Supplement
Detailed guidance on reporting and supplement eligibility for care minutes.
🔗 View Supplement Info
Finalised Aged Care Rules
Explore the final set of legislative rules under the new Aged Care Act.
🔗 View Finalised Rules
Final Detailed Business Rules
Comprehensive guidance for Support at Home claims and payments.
🔗 View Business Rules
Get the answers you need
Frequently Asked Questions
What are the key changes coming with the Aged Care Reforms on 1 July 2025?
The reforms introduce new financial and prudential standards, updates to home care and residential care payment rules, and expanded compliance reporting requirements. Key changes include:
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The transition from Home Care Packages to Support at Home, introducing new budget structures and claiming processes. Support at Home program
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New residential care daily fees and accommodation payment rules.
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Integration of Aged Care Web Services for real-time claims, payments, and reporting.
For more details, visit the Aged Care Reforms Roadmap
How is Care Systems preparing for these changes?
Care Systems is updating its platform to align with new subsidy structures, automate compliance tracking, and improve financial reporting processes. We are actively engaging with clients to ensure a seamless transition.
When will product updates be available?
Product updates will be rolled out progressively leading up to July 1, 2025. Updates related to financial reporting, subsidy claiming, and compliance tracking will be prioritised.
What does the transition from Home Care Packages to Support at Home mean for providers?
Providers will need to implement new budgeting and claiming processes. The shift includes an eight-level subsidy model, replacing the existing four levels, and changes to how contributions are assessed.
For more details, visit Support at Home Program – Department of Health and Aged Care
How will the new individual contribution rules affect claims?
Contributions will now be calculated at a set percentage for different service categories. The new system ensures transparency by validating contribution amounts in real-time through Aged Care Web Services.
What steps should providers take to prepare?
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Review the new service categories and subsidy structure.
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Ensure financial systems are set up to accommodate daily, rather than monthly, claiming.
Set up aged care web services software
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Validate registration details against the updated service provider summary.
What are the new financial obligations for residential aged care?
Residential aged care providers must comply with updated daily fee structures, new accommodation payment rules, and revised RAD and DAP indexation requirements.
How will these changes impact financial reporting?
Providers must track and report liquidity levels, risk management practices, and governance compliance to meet new prudential standards.
For more details, visit New Financial and Prudential Standards | Aged Care Quality and Safety Commission
Will the new rules impact existing residents?
Current residents will transition under ‘no disadvantage’ provisions, ensuring they retain financial arrangements similar to their current ones.
How will compliance tracking change?
Care providers will need to submit detailed financial and service-level reports via Aged Care Web Services, including real-time validation of claims, client contributions, and eligibility.
What role does Aged Care Web Services play?
Aged Care Web Services will act as the central data repository, replacing manual claims processing with real-time submission and validation. Providers will be able to track claims and payments seamlessly.
How can providers ensure readiness for compliance updates?
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Conduct an internal audit of data collection and reporting systems.
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Train staff on the new regulatory requirements and Care Systems’ updates.
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Participate in Care Systems’ upcoming webinars
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Complete readiness assessments
What is the timeline for finalising compliance details?
Final versions of the financial and prudential standards are expected by May 2025. Care Systems will continuously monitor and incorporate updates as they become available.
Will there be any impact if a claim for residential care services is submit directly through PRODA before February 2026?
As of now, new PRODA (Provider Digital Access) APIs for submitting residential care services claims are still under development and remain in draft mode. Until these new APIs are finalized and made available, existing APIs will continue to function as usual. Therefore, you can continue to submit claims for residential care services directly through PRODA without any impact before February 2026.
For official information and updates, please refer to the following government resources:
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Claim Residential Care Subsidies: This page provides steps to submit monthly residential care subsidies claims using the Aged Care Provider Portal (ACPP).
Residential Care Claims – Services Australia -
PRODA (Provider Digital Access): This page offers an overview of PRODA, including registration and access to available services.
PRODA (Provider Digital Access) – Services Australia
It’s advisable to regularly check these resources or contact the PRODA helpline at 1800 700 199 for the latest updates regarding the availability of new APIs and any changes to the claiming process.
What happens if someone pays a partial RAD, then pays more towards their RAD at a later date?
Example: Room Price of $500k, $100k RAD paid on entry, additional $100k of RAD paid 2 years later.
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RAD retention is calculated daily based on the total amount paid at that time.
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Any new RAD payments adjust retention calculations going forward, but past retentions remain unchanged.
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RAD balance reductions from drawdowns affect retentions, while previously taken retentions do not.
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DAP (Daily Accommodation Payment) is recalculated based on the unpaid RAD portion, increasing over time if the RAD balance decreases.
For more details, visit Residential aged care fee scenarios
Does this 2% apply to the current RAD balance at any given time, or is it a fixed 2% based on the initial RAD balance?
From the documentation: The amount retained would be calculated based on a retention rate of 2% per annum of the RAD balance, with the amount debited monthly. This change would also apply to Refundable Accommodation Contributions (RACs), which are used by residents that receive support for some but not all of their accommodation deposits.
For more details, visit Response to the Aged Care Taskforce – Accommodation Reform
What if they enter before June 30 but pay RAD after July 1?
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The rules applied are based on their admission date, not the payment date.
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If admitted before July 1, they remain under the old rules (i.e., no RAD retentions).
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If admitted on or after July 1, the new rules apply, including RAD retention deductions.
For more details, visit Residential aged care fee scenarios
What types of invoices will be required to be submitted to the Department as part of a funding claim under Support at Home?
Array of objects (Item details)
The below information will outline which additional fields are required to be submitted depending on the services claimed.
1. uploadReceipts: Mandatory
Social support and community engagement – Expenses to maintain personal affairs
Nursing care – Nursing care consumables
Nutrition – Nutrition supports
Transport – Indirect transport
Home maintenance and repairs – Expenses for home maintenance and repairs
2. uploadQuote – Conditional – Mandatory if itemFirstPayment is Yes
Home Adjustments – Home modifications products
3. uploadPrescription – Conditional – Mandatory if itemDescription is Prescription
Assistive Technology – Equipment and Products – Assistive technology prescription and clinical support
For more details, visit Residential aged care funding reform
If SAH service rates are mandated and all providers charge the same rates to clients (similar to current NDIS rates), will Care Systems regularly update these rates in databases, just as they do for residential fees, charges, and subsidy rate changes?
The rates are not mandated until July 1, 2026, but they will be updated accordingly when the mandate takes effect.
More information available at: Support at Home pricing resources
Are we required to include care management claims on client statements?
Not in detail. The 10% care management budget is pooled and deducted from the quarterly budget, but claims still need to be made per recipient. Statements will reflect the reconciled available funds, not the detailed breakdown of care management hours.
For more details, visit What To Include In Monthly Statements
Is the Daily Means Tested Amount used for DAP and other calculations?
Yes. It is the same underlying assessment from Centrelink, but used in different fee structures.
Will RAD reporting require breakdowns of each deduction type?
No. You only need to indicate why the RAD balance changed (e.g. drawdown, retention), not the specific dollar values per reason.
How are RAD retentions handled?
Retentions reduce the refund balance due to the resident, but they do not change the basis for DAP calculations.
Will system tools support fee validation?
Yes. A new comparison tool is being released to validate and compare means-tested amounts and related fees under the new structure.
If a resident has already reached their lifetime cap, do they start over?
No. Lifetime and annual caps already reached under the current rules continue to be honoured.
Do Higher Everyday Living Fees need to be itemised?
No. They can be bundled (e.g. Silver/Gold/Platinum tiers), as long as it is clear what each includes. Clarity is key, not the method of itemisation.
Will existing residents be impacted by the new rules?
No. Existing residents remain under current rules unless they are absent for more than 28 days or choose to be reassessed under the new rules.
When will the schedule for the roadshows be released, and how can people register to attend?
We will release communication on the Roadshows as soon as we’ve finalised location bookings.
If an existing HCP client (admission date pre 01/07/25) decides to move to another provider after 01/07/25, will they be eligible to opt-in to the pre 01/07/25 rules to maintain their % contribution reduction (because their initial admission date is pre 01/07/25) or will they have to pay the contribution % all other post 01/07/25 admissions are eligible to pay?
Grandfathering arrangements for participant contributions will also apply to people transitioning to Support at Home from the Home Care Package Program, as outlined in the participant contributions section of this document.
Grandfathering arrangements for participant contributions continue to apply even when participants transitioning to Support at Home from the Home Care Package Program are reassessed and reclassified.
From: Support At Home Program Handbook -Chapter 11
Care Recipients who were first assessed for Aged Care after September 2025 may transition to new % individual contribution rates based on the “new rules”, as the Grandfathering rules only apply to Care Recipients who were assessed at the time of the announcement of the new Aged Care Bill/Act.
Is RACS/NAPS ID going to change?
We believe that for most it won’t change, but for some, there’s a possibility that it might, and we believe Health Dept should let you know but perhaps touch base with them. While the RACS ID is not directly a part of the new aged care reforms, the reforms impact the overall regulatory framework. The new Aged Care Act (starting 1 November 2025) will introduce a universal provider registration system, replacing the separate RACS ID and other approvals. This change aims to consolidate providers under one registration, making it easier for those offering multiple services, like home care and residential care, to register.
Do we need to include 2% retention and index in the resident agreement?
Yes, you do. The terms of those agreements, including the 2% retention and indexation, must be included in the resident agreement. Additionally, providers are required to notify customers of DAP (Daily Accommodation Payment) indexation, likely via email or other system-generated correspondence. This notification should occur ahead of the fee change (e.g., for monthly billing, on the 20th of March). Further guidance will be provided.
Is Care Systems equipped to handle tracking of DAP on drawdown from RAD for fees and not in the retained amount?
Yes, the system handles that. If you draw down from the RAD, it affects the retention because the lump sum decreases. The system calculates this on a daily basis. You must decide on the drawdown date, as it impacts the retention calculation. Detailed demonstrations will be provided in October.
Does Care Systems update DAP to align the indexation?
Yes, Daily Accommodation Payment calculations now recognise DAP Indexation Factors and the new Index DAP Payments flag. When enabled, DAP amounts and their maximum limits are automatically adjusted for indexation, ensuring charges remain accurate over time.
What does it mean by "RAD balance needs to report monthly basis via ACWS" via PRODA?
As part of the 2025 Aged Care Reforms, all aged care providers are now required to report accommodation refundable balances on a monthly basis. This mandatory reporting applies to all balances held for accommodation deposits, whether they are Refundable Accommodation Deposits (RADs) or Refundable Accommodation Contributions (RACs). To support this requirement, providers can submit reports either through the My Aged Care Portal or directly via Care Systems. Within Care Systems, this process is managed through the Accommodation Refundable Balance Report.