Aged Care (Consequential and Transitional Provisions) (Aged Care System Modification) Rules 2025 (Cth)

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Aged Care (Consequential and Transitional Provisions) (Aged Care System Modification) Rules 2025

I, Sam Rae, Minister for Aged Care and Seniors, make the following rules.

Dated 29 October 2025

Sam Rae

Minister for Aged Care and Seniors

Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................ 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

Schedule 1—Modifications of the Aged Care Act 2024 2

Aged Care Act 2024 2

Schedule 2—Modifications of the Aged Care Rules 2025 9

Aged Care Rules 2025 9

1Name

This instrument is the Aged Care (Consequential and Transitional Provisions) (Aged Care System Modification) Rules 2025.

2Commencement

  1. (1)

    Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.

The whole of this instrument

Immediately after the commencement of Part 1 of Schedule 1 to the Aged Care and Other Legislation Amendment Act 2025.

1 November 2025

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

  1. (2)

    Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3Authority

This instrument is made under subitem 2(1) of Schedule 6 to the Aged Care (Consequential and Transitional Provisions) Act 2024.

4Schedules

The operation of each Act or instrument that is specified in a Schedule to this instrument is modified as if it were amended as set out in the applicable items in the Schedule concerned.

Schedule 1—Modifications of the Aged Care Act 2024

Aged Care Act 2024

1

Paragraph 315(2)(a)

After “period”, insert “(if any)”.

2

Subsection 316(1) (note)

Omit “income”, substitute “individual contribution rate”.

3

Paragraph 316(2)(a)

Omit “social security decisions”, substitute “decisions, the taking of certain actions, the operation of certain laws or programs or on the basis of certain information”.

4

Section 317

Repeal the section, substitute:

317Varying individual contribution rate determination following certain decisions, actions, operation of laws or programs or information

  1. (1)

    This section applies if:

    1. (a)

      an individual contribution rate determination is in force for an individual; and

    2. (b)

      the determination is no longer correct:

      1. (i)

        because of a decision made under, an administrative action taken under, or the operation of, the social security law (within the meaning of the Social Security Act 1991), a centrelink program or a law or program prescribed by the rules; or

      2. (ii)

        on the basis of information referred to in subsection (1A); and

    3. (c)

      any requirements prescribed by the rules are met.

    Note: For centrelink program, see section 40 of the Human Services (Centrelink) Act 1997.

  2. (1A)

    For the purposes of subparagraph (1)(b)(ii), the information is information:

    1. (a)

      obtained under or for the purposes of a law or program referred to in subparagraph (1)(b)(i); and

    2. (b)

      that is held by the System Governor, the Chief Executive Centrelink or the Chief Executive Medicare.

  3. (2)

    The System Governor must, within the period (if any) prescribed by the rules, vary the determination.

Effect of decision—increase in individual contribution rate

  1. (4)

    Subject to subsection (5), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type ongoing for the service group home support in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the day after the end of the quarter in which the variation is made.

  1. (4A)

    Subject to subsection (5), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type ongoing for the service group assistive technology in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the next anniversary of the entry day for the individual for the classification type for the service group.

  1. (4B)

    Subject to subsection (5), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type short‑term for the service group home support, assistive technology or home modifications in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the next period of effect (if any) of a classification level for the classification type for the service group.

Effect of decision—decrease in individual contribution rate

  1. (4C)

    Subject to subsection (5), if the variation results in a decrease to the individual contribution rate for an individual for a means testing category, the variation takes effect for a funded aged care service in the category on the day of the occurrence of the event or change in circumstances:

    1. (a)

      that resulted in the decision, action or operation referred to in subparagraph (1)(b)(i) being made, taken or occurring; or

    2. (b)

      to which the information referred to in subparagraph (1)(b)(ii) relates;

(as applicable).

Effect of decision—rules

  1. (5)

    The rules may prescribe that, in specified circumstances, the variation takes effect on a specified day, which must not be earlier than the day of the occurrence of the event or change in circumstances:

    1. (a)

      that resulted in the decision, action or operation referred to in subparagraph (1)(b)(i) being made, taken or occurring; or

    2. (b)

      to which the information referred to in subparagraph (1)(b)(ii) relates;

(as applicable).

5

Subsections 318(5) and (6)

Repeal the subsections, substitute:

Effect of decision—increase in individual contribution rate

  1. (5)

    Subject to subsection (6), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type ongoing for the service group home support in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the day after the end of the quarter in which the variation is made.

  1. (5A)

    Subject to subsection (6), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type ongoing for the service group assistive technology in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the next anniversary of the entry day for the individual for the classification type for the service group.

  1. (5B)

    Subject to subsection (6), if:

    1. (a)

      the variation results in an increase to the individual contribution rate for an individual for a means testing category; and

    2. (b)

      on the day the variation is made, the individual has the classification type short‑term for the service group home support, assistive technology or home modifications in effect;

the variation takes effect, for a funded aged care service in the category delivered to the individual through the service group, at the start of the next period of effect (if any) of a classification level for the classification type for the service group.

Effect of decision—decrease in individual contribution rate

  1. (5C)

    Subject to subsection (6), if the variation results in a decrease to the individual contribution rate for an individual for a means testing category, the variation takes effect for a funded aged care service in the category on the day the event or change in the individual’s circumstances occurred.

Effect of decision—rules

  1. (6)

    The rules may prescribe that, in specified circumstances, the variation takes effect on a specified day (which must not be earlier than the day the event or change in the individual’s circumstances occurred).

6

Subsection 324(2A)

Omit “Subdivision D”, substitute “section 336”.

7

After subsection 324(2A)

Insert:

  1. (2B)

    The income determination must be varied following the making of certain decisions, the taking of certain actions, the operation of certain laws or programs or on the basis of certain information (see section 325A).

8

Section 325 (heading)

After “circumstances”, insert “by individual”.

9

Subsection 325(1)

Omit “Subdivision D”, substitute “section 336”.

10

After section 325

Insert:

325AVarying income determination following certain decisions, actions, operation of laws or programs or information

  1. (1)

    This section applies if:

    1. (a)

      an income determination is in force for an individual; and

    2. (b)

      the determination is no longer correct:

      1. (i)

        because of a decision made under, an administrative action taken under, or the operation of, a law or program referred to in subparagraph 317(1)(b)(i); or

      2. (ii)

        on the basis of information referred to in subsection 317(1A); and

    3. (c)

      any requirements prescribed by the rules are met.

  2. (2)

    The System Governor must, within the period (if any) prescribed by the rules, vary the determination.

11

Subsection 331(2)

Repeal the subsection, substitute:

  1. (1A)

    The asset determination may be varied or revoked on the application of the individual (see section 333).

  2. (2)

    The asset determination may be varied or revoked in accordance with a decision required by section 334 (decisions required in certain circumstances if the System Governor has been notified of the occurrence of an event or a change in the individual’s circumstances under section 337).

12

Subsection 331(2A)

Omit “Subdivision D”, substitute “section 336”.

13

After subsection 331(2A)

Insert:

  1. (2B)

    The asset determination must be varied following the making of certain decisions, the taking of certain actions, the operation of certain laws or programs or on the basis of certain information (see section 332A).

14

Section 332 (heading)

After “circumstances”, insert “by individual”.

15

Subsection 332(1)

Omit “Subdivision D”, substitute “section 336”.

16

After section 332

Insert:

332AVarying asset determination following certain decisions, actions, operation of laws or programs or information

  1. (1)

    This section applies if:

    1. (a)

      an asset determination is in force for an individual; and

    2. (b)

      the determination is no longer correct:

      1. (i)

        because of a decision made under, an administrative action taken under, or the operation of, a law or program referred to in subparagraph 317(1)(b)(i); or

      2. (ii)

        on the basis of information referred to in subsection 317(1A); and

    3. (c)

      any requirements prescribed by the rules are met.

  2. (2)

    The System Governor must, within the period (if any) prescribed by the rules, vary the determination.

17

Subsection 333(1)

Omit “paragraph 331(2)(b)”, substitute “subsection 331(1A)”.

18

Section 334

Repeal the section, substitute:

334Varying or revoking asset determination in certain circumstances following notification of event or change in circumstances by registered provider

Application

  1. (1A)

    This section applies if:

    1. (a)

      an asset determination is in force for an individual; and

    2. (b)

      the System Governor has been notified of the occurrence of an event or a change in the individual’s circumstances under section 337; and

    3. (c)

      the event or change in circumstances is not set out in the notice of the asset determination (see subsection 329(8)) or a notice of a decision to vary the asset determination (see subsection 335(1)); and

    4. (d)

      the asset determination is no longer correct because of the occurrence of the event or change in the individual’s circumstances; and

    5. (e)

      any circumstances prescribed by the rules do not apply.

Initial notice to individual

  1. (1)

    The System Governor must give the individual a written notice (the initial notice).

  2. (2)

    The initial notice must:

    1. (aa)

      inform the individual that the System Governor has been notified of the occurrence of an event or a change in the individual’s circumstances under section 337; and

    2. (ab)

      set out the event or change in the individual’s circumstances; and

    3. (a)

      inform the individual that the event or change in the individual’s circumstances may be a reason to vary or revoke the asset determination, and what the effect of the variation or revocation would be; and

    4. (b)

      invite the individual to make a submission to the System Governor in relation to the matter within the period specified in the initial notice (which must not be less than 28 days after giving the initial notice); and

    5. (c)

      inform the individual that the System Governor may decide to vary or revoke the asset determination:

      1. (i)

        if no submission is made within the specified period; or

      2. (ii)

        after considering any submission made by the individual within the specified period.

Further notice if individual does not respond to initial notice

  1. (2A)

    If the individual does not make a submission within the specified period, the System Governor must give the individual a written notice (the further notice).

  2. (2B)

    The further notice must:

    1. (a)

      contain the information referred to in paragraphs (2)(aa), (ab) and (a) contained in the initial notice; and

    2. (b)

      invite the individual to make a submission to the System Governor in relation to the matter within the period specified in the further notice (which must not be less than 28 days after giving the further notice); and

    3. (c)

      inform the individual that the System Governor may decide to vary or revoke the asset determination:

      1. (i)

        if no submission is made within the specified period; or

      2. (ii)

        after considering any submission made by the individual within the specified period.

Request for further information in initial or further notice

  1. (3)

    The System Governor may also request, in the initial notice or further notice, that the individual give the System Governor the information specified in the notice, within the period specified in the notice for the purposes of paragraph (2)(b) or (2B)(b), to assist the System Governor to decide whether to vary or revoke the asset determination.

    Note: The individual is not obliged to give the information.

Request for further information following submission by individual

  1. (4)

    If the individual makes a submission in accordance with the invitation under paragraph (2)(b) or (2B)(b), the System Governor may, by written notice, request the individual to give the System Governor further information, within the period specified in the notice (which must not be less than 28 days after giving the notice), to assist the System Governor to decide whether to vary or revoke the asset determination.

    Note 1: The System Governor may request further information under this subsection regardless of whether information was requested or given under subsection (3).

    Note 2: The individual is not obliged to give the information.

  2. (5)

    The System Governor may, at the request of the individual, extend the period specified for paragraph (2)(b) or (2B)(b) or subsection (4).

Deciding whether to vary or revoke asset determination

  1. (6)

    The System Governor must:

    1. (a)

      consider any submission made in accordance with the invitation under paragraph (2)(b) or (2B)(b) and any further information given in accordance with a request under subsection (3) or (4); and

    2. (b)

      make a decision whether to vary or revoke the asset determination within the period specified in the rules.

19

Before subsection 337(1)

Insert:

  1. (1A)

    A registered provider delivering funded aged care services through the service group residential care to an individual with the classification type ongoing for that service group must notify the System Governor of:

    1. (a)

      the occurrence of an event or a change in the individual’s circumstances prescribed by the rules; and

    2. (b)

      any information prescribed by the rules relating to the event or change in the individual’s circumstances.

20

Subsection 337(1)

Omit “may notify the System Governor of the occurrence of any”, substitute “must notify the System Governor of the occurrence of any other”.

21

Subsections 337(2) and (3)

After “subsection”, insert “(1A) or”.

Schedule 2—Modifications of the Aged Care Rules 2025

Aged Care Rules 2025

1

Section 315‑10

Repeal the section.

2

After section 316‑5

Insert:

317‑1Laws and programs

For the purposes of subparagraph 317(1)(b)(i) of the Act, the laws and programs are the following:

  1. (a)

    A New Tax System (Family Assistance) Act 1999;

  2. (b)

    A New Tax System (Family Assistance) (Administration) Act 1999;

  3. (c)

    FarmHousehold Support Act 2014;

  4. (d)

    MRC Act;

  5. (e)

    Paid Parental Leave Act 2010;

  6. (f)

    Safety, Rehabilitation and Compensation (Defence‑related claims) Act 1988;

  7. (g)

    Student Assistance Act 1973;

  8. (h)

    Veterans’ Entitlements Act;

  9. (i)

    the program specified in item 430.017 (F111 Payments) of Part 4 of Schedule 1AA to the Financial Framework (Supplementary Powers) Regulations 1997.

3

Sections 317‑5 and 318‑10

Repeal the sections.

4

Subsection 324‑5(2)

Repeal the subsection, substitute:

Variation results in no change to, or a decreased, means tested amount

  1. (2)

    If the variation results in:

    1. (a)

      no change to the individual’s daily means tested amount; or

    2. (b)

      a decrease to the individual’s daily means tested amount;

the day specified must be the day the event or change in circumstances occurred.

5

Paragraph 324‑5(3)(a)

Repeal the paragraph, substitute:

  1. (a)

    if the decision under subsection 324(1) of the Act to vary the income determination is made because the individual notified the System Governor of an event or change in the individual’s circumstances as required by section 336 of the Act, and the individual gave the notification within 28 days of the day the event or change in circumstances occurred—the day notice of the decision is given; or

6

Subsection 325‑5 (heading)

After “circumstances”, insert “by individual”.

7

Subsections 331‑5(2) and (3)

Repeal the subsections, substitute:

Variation results in no change to, or a decreased, means tested amount

  1. (2)

    If the variation results in:

    1. (a)

      no change to the individual’s daily means tested amount; or

    2. (b)

      a decrease to the individual’s daily means tested amount;

the day specified must be the day the event or change in circumstances occurred.

Variation results in an increased means tested amount

  1. (3)

    If the variation results in an increase to the individual’s daily means tested amount, the day specified must be:

    1. (a)

      if the decision under subsection 331(1) of the Act to vary the asset determination is made because the individual notified the System Governor of an event or change in the individual’s circumstances as required by section 336 of the Act, and the individual gave the notification within 28 days of the day the event or change in circumstances occurred—the day notice of the decision is given; or

    2. (b)

      otherwise—28 days before the day notice of the decision under subsection 331(1) of the Act is given.

8

Section 334‑5

Repeal the section, substitute:

334‑1Varying or revoking asset determination following notification of event or change in circumstances by registered provider—circumstances in which section 334 of the Act does not apply

  1. (1)

    For the purposes of paragraph 334(1A)(e) of the Act, the circumstances are that:

    1. (a)

      the event or change in circumstances of which the registered provider notified the System Governor under section 337 of the Act is:

      1. (i)

        the payment of a refundable deposit by the individual; or

      1. (ii)

        a change in the individual’s refundable deposit balance; and

    2. (b)

      subsection (2) of this section applies to the individual.

  2. (2)

    This subsection applies to the individual if:

    1. (a)

      the difference between the following is less than $10,000:

      1. (i)

        the amount of the individual’s refundable deposit balance included in the notice of the asset determination in force for the individual (see subsection 329(8) of the Act) or the most recent notice (if any) of a decision to vary the asset determination (see subsection 335(1) of the Act));

      2. (ii)

        the amount of the individual’s refundable deposit balance of which the registered provider notified the System Governor under section 337 of the Act; or

    2. (b)

      the individual has means not disclosed status; or

    3. (c)

      on a day on or after the day the registered provider made the notification:

      1. (i)

        the individual’s means tested care fee is zero under section 285A‑14 of this instrument; or

      2. (ii)

        the non‑clinical care contribution for the individual is zero under subsection 279(5) of the Act; or

    4. (d)

      the individual has died; or

    5. (e)

      the individual has ceased accessing funded aged care services in an approved residential care home, without starting to access funded aged care services in another approved residential care home; or

    6. (f)

      the System Governor has given the individual an initial notice under subsection 334(1) of the Act in relation to another event or a change in the individual’s circumstances and has not yet made a decision required by subsection 334(6) of the Act in relation to that event or change in circumstances.

334‑5Period for varying or revoking asset determination—following notification of event or change in circumstances by registered provider

For the purposes of paragraph 334(6)(b) of the Act, the period for making a decision under that paragraph is 28 days from:

  1. (a)

    if no submission is made in accordance with the invitation in the initial notice under subsection 334(1) of the Act or the further notice under subsection 334(2A) of the Act—the end of the period specified in the further notice (including that period as extended (if applicable) under subsection 334(5) of the Act); or

  2. (b)

    if a submission is made in accordance with the invitation in the initial notice under subsection 334(1) of the Act or the further notice (if any) under subsection 334(2A) of the Act, and no further information is requested under subsection 334(4) of the Act—the day the submission is made; or

  3. (c)

    if a submission is made in accordance with the invitation in the initial notice under subsection 334(1) of the Act or the further notice (if any) under subsection 334(2A) of the Act, and further information is requested under subsection 334(4) of the Act—the day the individual gives the System Governor the further information.

9

After section 336‑5

Insert:

337‑1Notifications by registered providers—events and changes in circumstances and related information

For the purposes of subsection 337(1A) of the Act, an event or change in an individual’s circumstances set out in an item of the following table, and the information relating to the event or change in the individual’s circumstances set out in that item, are prescribed.

Events and changes in circumstances and related information

Item

Event or change in circumstances

Information

1

The individual pays a refundable deposit

The amount paid

2

A change in the individual’s refundable deposit balance

The amount of the balance after the change

10

Section 337‑5

Omit “251” (wherever occurring), substitute “257”.

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