Opting in to new fee arrangements
From 1 November 2025, a resident’s fee arrangements will only change if they choose to opt in to the 1 November 2025 fee arrangements.
A resident on older fee arrangements can choose to opt in to the 1 November 2025 fee arrangements at any time. This includes both:
- while they are in your service
- when they move to a new service.
It's important for them to get financial advice before they make this decision, because it can't be undone.
To opt in to the 1 November 2025 fee arrangements a resident must:
- complete and sign the Continuing Care Recipient Opting into the New Arrangements Form
- give the completed form to you, so you can submit it to Services Australia with the Aged Care Entry Record form.
A resident will remain on their current fee arrangements until they submit an opting in form.
If they take a break in care of any length, their fee arrangements won’t change but their accommodation arrangements might. Read about changes to accommodation arrangements.
How opting in affects fees and accommodation costs
Once a resident opts into the 1 November 2025 fee arrangements, the new means testing thresholds, taper rates and caps will apply when the resident’s hotelling and non-clinical care contributions are calculated.
Opting in to new fee arrangements will only affect a resident’s accommodation arrangements when they enter a service.
If a resident opts in while living at your service:
- they will pay their fees under the new fee arrangements
- their accommodation arrangements will remain unchanged, and continue as per their accommodation agreement.
If a resident opts in when moving to a new service, or moves to a new residential care service after opting in:
- they will pay their fees under the new fee arrangements
- the new accommodation arrangements will apply when they sign an accommodation agreement with the new service.
Changes to accommodation arrangements
A resident’s accommodation arrangements may change when they exit care for more than 28 days and then re-enter care.
Residents on 1 July 2014 accommodation arrangements
A resident on 1 July 2014 accommodation arrangements will move to the 1 November 2025 accommodation arrangements if they:
- exit care for more than 28 days and then re-enter care
- move services after opting in to the 1 November 2025 fee arrangements.
When they move to the new accommodation arrangements:
- daily accommodation payment (DAP) indexation will apply
- refundable accommodation deposit/refundable accommodation contribution (RAD/RAC) retention will apply.
Residents on pre 1 July 2014 accommodation arrangements
Residents on pre 1 July 2014 accommodation arrangements will move to the 1 November 2025 accommodation arrangements if they move services after opting in to the 1 November 2025 fee arrangements
When they move to the new accommodation arrangements:
- DAP indexation will apply
- RAD/RAC retention will not apply, so providers can’t deduct any retention amounts if the resident chooses to pay a RAD or RAC.
Fee advice letters
Fee arrangement advice
If a resident opts in to the new fee arrangements while living in your service, Services Australia will send you and your resident a letter with:
- new fees that apply to them and the amounts they must pay
- the date the new fees apply from.
Accommodation arrangement advice
A fee advice letter from Services Australia won’t specify which accommodation arrangements apply (e.g. 1 November 2025 accommodation arrangements or 1 July 2014 accommodation arrangements etc). Instead, it will state whether a resident pays an:
- accommodation payment (amount agreed between you and the resident)
- accommodation contribution and the amount payable
- accommodation bond (amount agreed between you and the resident)
- accommodation charge and the amount payable.
The department has developed a guide to assist providers to determine when accommodation reforms apply to residents.
Providers are responsible for charging their residents the correct type of accommodation costs.
Residential aged care fees contact