Aged Care Reforms 2025 for Family Business Owners: Why Early Planning Matters
- Future Accounting
- Nov 3
- 4 min read
Updated: 7 days ago
Written by: Chris Mulcahy
Protect your family business from the financial impact of aged care reforms 2025
Australia’s aged care system has entered a new era.
From 1 November 2025, the Aged Care Act 2025 took effect — transforming how aged care is funded, delivered, and regulated.
The aged care reforms 2025 for family business owners are about more than care arrangements. They affect how families manage wealth, succession, and intergenerational transitions. With the right planning, business families can protect assets, optimise tax outcomes, and ensure quality care for loved ones.
Why aged care reforms 2025 matter for family business owners
Aged care planning isn’t just a personal decision — it’s a family and business decision.
For farming families, private companies, and small enterprises, aged care costs and rules can directly influence cashflow, asset protection, and succession timing.
Planning early means your family can make confident choices about care and ownership without unnecessary financial stress or conflict.
Key changes under the aged care reforms 2025
A new rights-based aged care framework
The Aged Care Act 2025 introduced a modern, person-centred system designed to improve transparency and accountability.
Key updates include:
A formal Statement of Rights for care recipients
Mandatory 24/7 registered nurse coverage in residential care
Stronger governance, workforce and financial standards for providers
Enhanced complaints processes and oversight
These reforms are intended to lift the standard of care and rebuild trust in the aged care system.
Understanding the new fee and funding rules
A new means-tested funding model now applies across the system.
Families with higher asset bases may contribute more toward their care.
Refundable Accommodation Deposits (RADs) and Daily Accommodation Payments (DAPs) continue with updated rules.
From 1 November 2025, providers may deduct RAD retention amounts.
The maximum RAD cap rose to $750,000 from 1 January 2025.
The Basic Daily Fee remains unchanged and continues to cover everyday living costs.
All fees are now indexed to inflation (CPI).
Residents already in care before 1 November 2025 are protected under “no worse off” transition provisions.
Impact on family businesses:
Business and farming assets can significantly influence means testing. Without thoughtful structuring, these assets may increase assessed wealth and reduce access to government support. Strategic advice can help minimise the impact while protecting business continuity.
How the Support at Home program changes in 2025
The Support at Home program replaced the former Home Care Packages (HCP) and Short-Term Restorative Care (STRC) programs.
Here’s what’s new:
Clients now pay only for the services they use — there’s no Basic Daily Fee.
Government-set price caps begin from 1 July 2026.
“No worse off” guarantees protect clients already approved under previous arrangements.
The Commonwealth Home Support Programme (CHSP) will transition later, not before 1 July 2027.
For family business owners, Support at Home offers flexibility to remain active in the enterprise while receiving tailored assistance — provided care contributions and cashflow are planned effectively.
Why family businesses should plan ahead now
Protecting the family enterprise
Business assets such as farms, property, and company shares can distort aged care means testing. Early restructuring ensures that wealth remains productive without jeopardising eligibility or liquidity.
Aligning aged care with succession
Aged care decisions often coincide with retirement and business handover. Integrating both processes helps balance fairness among family members, prevent disputes, and manage tax outcomes.
Managing cashflow and liquidity
Funding RADs, DAPs, or ongoing care fees can create liquidity challenges. Planning ahead helps families identify how to meet these costs without disrupting operations or growth.
Using CGT and stamp duty concessions
The current CGT small business and stamp duty concessions remain powerful tools for family business succession and restructuring. However, these concessions are subject to change, and proactive use while they’re available can deliver significant tax advantages and long-term savings.
Achieving family harmony and confidence
With clarity around aged care and succession, families can focus on running their business while knowing that senior members are well supported and financial risks are managed.
How Future Accounting Group can help you prepare
At Future Accounting Group, we guide families through our structured Future Prosperity Process, a proven approach that brings together:
Family business succession planning
Aged care and retirement strategy
Wealth and asset protection
Tax and estate alignment, including CGT and stamp duty opportunities
Our goal is to help families preserve wealth, secure quality care, and transition smoothly to the next generation.
If you or your parents are approaching a stage where aged care planning is relevant, now is the perfect time to start the conversation.
Final thought: secure your family’s prosperity today
The aged care reforms 2025 for family business owners are a wake-up call to plan early.
They signal a new approach to care, rights, and financial responsibility - and they highlight how business families must think strategically about ageing, ownership, and continuity.
Don’t wait until it’s urgent.
Book an appointment with Future Accounting Group today to begin your Future Prosperity planning. We’ll help you protect your business, care for your family, and build confidence for the years ahead.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
