Caring for ageing parents often comes with tough choices. Do they stay in the family home, move into residential aged care, or find a way to live independently while still being close to family? With major changes to Australia’s aged care system now underway, building a granny flat could be one of the smartest and most supportive options. Building a granny flat may even now cost less thanks to several interest rate cuts, which make loans cheaper and more manageable
1. Aged Care Policy Is Shifting to ‘Care at Home’
From July 2025, the Federal Government will begin rolling out the new Support at Home Program, which replaces the existing Home Care Packages and Short-Term Restorative Care.
The reforms are designed to:
-
Expand support for services delivered at home (like nursing, cleaning, shopping, or mobility aids).
-
Increase the number of funding levels from four to eight, with more generous budgets for higher-care needs.
-
Guarantee older Australians will be “no worse off” as the system changes.
Source: Department of Health – Support at Home reforms
What this means for you: More people will be supported to stay living at home — and if your parents are in a granny flat on your property, that care can be delivered there just as easily as in their own standalone home.
2. Extra Home Care Packages Are Being Fast-Tracked
The government has also announced 20,000 additional Home Care Packages by the end of 2025, as part of a broader commitment to roll out 43,000 places by 2026.
This is good news for families on the waiting list. It means your parents are more likely to access the in-home support they need — whether that’s personal care, meals, or allied health services — without having to consider moving into a nursing home.
Source: The Guardian – Labor brings forward 20,000 in-home aged care places
Pairing this funding with a well-designed granny flat makes it easier to combine government-funded care with the day-to-day support you already provide as family.
3. Avoiding Hospital Delays and Residential Aged Care
In NSW, thousands of older people remain in hospital beds longer than necessary because there aren’t enough suitable home care or aged care places available. This not only impacts the health system but also delays people returning to a familiar environment.
Source: Daily Telegraph – Shock figures expose NSW hospital discharge delays
A granny flat on your property gives your parents a safe and private space to come back to, while still being close enough for you to help — and new policy investment is aimed precisely at making these transitions smoother.
4. A Granny Flat Future-Proofs Your Family’s Living Arrangements
Even beyond the health system changes, granny flats bring practical, long-term benefits:
-
Independence with connection: Parents have their own space, but support is close at hand.
-
Flexible use over time: If circumstances change, the granny flat can later become a rental, a guest home, or a place for grown children.
-
Financial advantage: Building a granny flat often costs less than years of residential aged care fees and may add value to your property.
With the Federal Government reshaping aged care to prioritise support at home, the case for building a granny flat has never been stronger. It aligns with the direction of policy, gives your parents independence, and ensures they can access government-funded care in a familiar environment — all while keeping family close.
Thinking about building a granny flat for your parents?
For families weighing up the decision, it’s worth exploring not just the government reforms but also the practical side of building for ageing parents. We’ve shared advice on weighing up the costs and benefits of granny flats, tips on designing with elderly relatives in mind, and even guidance on how to start the granny flat conversation with your parents. Together with the government’s push to expand care at home, these insights show why building a granny flat for your parents is not only viable but one of the most supportive choices you can make.
The Acrow team can help you assess your property, design for comfort and accessibility, and navigate council requirements. Contact us.