From November 1, Australia's aged care system is set to undergo one of its biggest shake-ups in decades. The changes, introduced under the Aged Care Act 2024, aim to improve transparency, sustainability and quality of care.

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But for families with loved ones entering residential aged care, they also bring new financial decisions - and new costs.

As more Australians need aged care, the government is changing how it's funded. Instead of increasing subsidies, we're seeing a shift towards a "user pays" model - meaning those with financial resources will contribute more to the cost of their care.

Aged care may seem like a distant "what if", but for older Australians, it's an increasing reality. One in five people over 85 reside in residential aged care, and another one in five access support through at-home services. With people living longer, these figures are only expected to increase.

Understanding, and planning for a transition is an increasing priority for retiring Australians.

Here's a breakdown of the key fees you'll encounter:

In addition to ongoing care, there's a bond payable for the room, known as a Refundable Accommodation Deposit (RAD). While the previous costs are largely pre-determined, here there are options. You can:

Previously, the RAD was fully refundable. But from November 1, providers can retain 2 per cent of the RAD per year, up to five........

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