New maximum room prices in residential aged care: what it means to you

In a key reform for the aged care sector, the Australian government is increasing the maximum room price that residential aged care providers can charge without needing approval. Starting 1 January 2025, this price limit will rise from $550,000 to $750,000.

Here’s everything you need to know about these changes:

What do these changes mean for you?

This change doesn't mean that room prices will automatically go up. If you're already living in an aged care home, your current room price will stay the same.

For those looking to move into an aged care facility, the price you'll pay depends on the room you choose and the price agreed upon with the provider. Aged care providers can only charge above the new maximum price of $750,000 if they have approval from the Independent Health and Aged Care Pricing Authority.

How are room prices affected?

The new cap of $750,000 is the maximum amount that can be charged without approval. However, room prices aren't set to rise automatically. When moving into an aged care home, the price will vary based on the room type, geographic location of the community (i.e. if in Brisbane or in a regional area) and more.

While the rise in the price cap reflects the rising demand for higher-quality rooms, it’s important to remember that you can still choose the room that fits your needs and budget.

Read our article 'Understanding residential aged care home accommodation costs' to learn more.