Australia operates two separate government systems for people who need support with disability and ageing: the National Disability Insurance Scheme (NDIS) and the aged care system. Age is the primary dividing line, but the rules around eligibility, transitions, and what each system funds are far more detailed than most people realise. Getting this wrong, especially around the 65 age threshold, can have lasting consequences. This guide explains the key differences and how each system works. It also covers what changed with the November 2025 aged care reforms and how to plan if you are approaching 65 with disability.
NDIS vs Aged Care: The Fundamental Difference
The NDIS is for people under 65 who have a permanent and significant disability. It provides individualised funding that participants use to purchase their own supports from registered and unregistered providers. Funding is based on what is reasonable and necessary given the participant’s disability, goals, and circumstances.
The aged care system is for people 65 and over who need support with the natural challenges of ageing. It subsidises services delivered through aged care providers, with the participant contributing to costs based on their income and assets. Access is through My Aged Care.
One of the most significant and least understood differences is that the NDIS is not means-tested, while the aged care system is means-tested. Your income and assets have no effect on the NDIS funding allocated to your plan. In aged care, your income and assets are assessed by Services Australia to determine your contribution to the cost of services. For people with assets transitioning from the NDIS to aged care, this can mean a significant change in out-of-pocket costs.
Who Qualifies for the NDIS
To access the NDIS you must:
- Be under 65 at the time of your access request
- Be an Australian citizen, permanent resident, or hold a Protected Special Category Visa
- Live in Australia
- Have a permanent and significant disability that substantially reduces your functional capacity
- Be likely to require NDIS support for your lifetime
For Aboriginal and Torres Strait Islander people, some provisions apply earlier, but the NDIS application age threshold of under 65 remains the same across all groups. The distinction applies to aged care access, which is available to First Nations Australians from age 50.
Who Qualifies for Aged Care
Aged care services are available to:
- Australians aged 65 and over who have assessed care needs related to ageing
- Aboriginal and Torres Strait Islander people aged 50 and over
- People aged 50 and over who are homeless or at risk of homelessness
Eligibility is determined through an aged care needs assessment. The process is straightforward. From 1 July 2025, this assessment uses the new Single Assessment System with the Integrated Assessment Tool, which replaced the previous ACAT and ACAS frameworks. In Victoria, Aged Care Assessment Services (ACAS) continue to conduct assessments, but the assessment tool and framework changed.
There is no upper age limit for aged care. You can access it at 65, 85, or any age. A person can access aged care services at 65, 85, or 105.
What the NDIS Funds
The NDIS funds supports across Core, Capacity Building, and Capital budgets. For disability support, this includes:
- Personal care and daily living assistance
- Community participation and social inclusion
- Allied health therapy including occupational therapy, speech pathology, psychology, physiotherapy, and behaviour support
- Support coordination and specialist support coordination
- Assistive technology specific to the participant’s individual needs
- Home modifications required because of disability
- Supported independent living and specialist disability accommodation
- Employment-related supports
- Psychosocial recovery coaching
NDIS funding is allocated based on each participant’s individual goals and functional capacity. Participants choose their own providers and manage their own funding, either directly, through a plan manager, or through the NDIA as agency manager.
What Aged Care Funds: The Support at Home Program
As of 1 November 2025, the aged care home support landscape changed significantly. The new Support at Home program replaced both the Home Care Packages Program and the Short-Term Restorative Care Programme.
What Support at Home Provides
Support at Home funds clinical supports (nursing, allied health), independence and everyday living (personal care, meal preparation, cleaning, transport), and home modifications and assistive technology. Participants work with their chosen provider to select from their approved service list.
Support at Home has eight funding classification levels, compared to four under the old Home Care Packages system. Classification is based on an assessment of the person’s care needs and goals. Higher classifications mean more funding for people with greater care needs.
Three short-term pathways also exist within Support at Home:
- Restorative Care Pathway: short-term allied health and nursing to regain independence
- Assistive Technology and Home Modifications (AT-HM) scheme: upfront funding for equipment and home adjustments
- End-of-Life Pathway: additional care support in the final three months of life
The Commonwealth Home Support Programme (CHSP) provides entry-level services for people who need small amounts of help. CHSP continues separately and is expected to transition to Support at Home no earlier than 1 July 2027.
How to Access Support at Home
Contact My Aged Care on 1800 200 422 to start an aged care needs assessment. Assessments take place in the person’s home and cover their strengths, difficulties, and ageing-related care goals. If approved, the person receives a Notice of Decision and support plan. They then wait for funding allocation through the Support at Home Priority System, with a government target of three-month wait times by July 2027.
Once funding is allocated, the person enters a service agreement with a Support at Home provider within 56 days, or 84 days with an extension. Services Australia then assesses the person’s income and assets to determine their contribution to costs.
The Critical Age 65 Rules for NDIS Participants
Several rules apply specifically to NDIS participants approaching or passing the age of 65.
You Can Stay on the NDIS After 65
If you became an NDIS participant before your 65th birthday, you can remain on the NDIS after turning 65. There is no forced transition. Your plan continues and is reviewed on its usual schedule. The NDIA does not automatically move you to aged care at 65.
You Cannot Apply for the NDIS After 65
If you have not accessed the NDIS before turning 65, you cannot apply for the first time after that date, even with a significant disability. If you are approaching 65 with an existing disability that could qualify for the NDIS, apply as early as possible. Do not wait. Once you turn 65 without an NDIS plan, the aged care system is your pathway.
Moving to Residential Aged Care Ends NDIS Eligibility
If you permanently move into a residential aged care facility after turning 65, you must leave the NDIS. This is a legal requirement with no possibility of internal review. If you permanently start receiving aged care home services after turning 65, you must also leave the NDIS.
The Transition Is a One-Way Door
Leaving the NDIS for aged care is permanent. You cannot return once you have left. This irreversibility is often the most important factor in deciding when and whether to transition. Before making any decision, explore both systems thoroughly and speak with a support coordinator or advocate.
How to Transition Safely
When you are ready to transition from the NDIS to aged care, follow these steps in order. First, apply for an aged care needs assessment through My Aged Care. Second, confirm your aged care services and funding are in place. Third, only then notify the NDIA in writing that you intend to leave. Do not notify the NDIA before services are ready. There is no transition overlap period and aged care services must be active before you exit the NDIS.
Younger People in Residential Aged Care
The NDIA is committed to ensuring no person under 65 lives in residential aged care unless it is their own choice or exceptional circumstances apply. Residential aged care is generally not appropriate for younger people.
An AIHW report published in April 2026 examined a cohort of 12,300 younger people who lived in residential aged care between 2017 and 2022. Progress has been made in reducing these numbers, but younger people in residential aged care remain a priority group.
You may be eligible for the NDIS if you are under 65 and living in residential aged care. The NDIS can fund disability-specific supports within the facility and can fund support to help you move out if that is your goal. The Basic Daily Care Fee (covering meals, cleaning, and heating) and accommodation deposits cannot be funded by the NDIS. Contact the NDIA on 1800 800 110 or speak with a support coordinator to explore your options.
What Each System Funds at the Boundary
When it is unclear which system should fund a particular support, the Applied Principles and Tables of Support provides the formal framework for resolving responsibility. This document, published by the Australian Government, sets out which system is responsible for which types of supports in overlapping situations.
In practice, the boundary is clearest at the extremes. Disability-specific assistive technology for one person is generally NDIS-funded, while shared equipment in a residential aged care facility is the facility’s responsibility. Allied health provided for capacity building and functional goals is generally NDIS-funded; clinical treatment for ageing-related conditions is generally the health system’s responsibility. Transport, personal care, meal preparation, and social participation often fall in grey areas, depending on whether the need is disability-related or ageing-related.
Why Choose Nhanya Foundation for NDIS Support in Melbourne
Nhanya means persistence. Navigating the boundary between the NDIS and aged care is one of the most consequential decisions a person with disability and their family can face. The stakes are high, the rules are complex, and the transition is irreversible. We work alongside people at every stage. Nhanya Foundation is a Melbourne-based not-for-profit organisation and registered charity. We support people with disability, their families, and carers to understand their options and make informed decisions about NDIS access, support planning, and system transitions.
Our Support Coordination service helps participants approaching 65 understand their options and prepare plans for a future transition, coordinating the move when the time comes. For participants who want to stay on the NDIS, we help ensure plans remain current and reflective of genuine needs.
Our Specialist Support Coordination service handles the most complex situations at the NDIS-aged care boundary. This includes younger people in residential aged care who want other options, and participants whose transition involves housing, health, or family challenges.
Our Advocacy and Service Navigation service supports people denied NDIS access who should have applied before 65, people whose plans fall short, and people navigating aged care assessments alongside NDIS plans. We help build the evidence for reviews and connect people with the NDIS Appeals Program.
Our Disability Support Services provide day-to-day support for people with disability, including those whose support needs cross the NDIS-aged care boundary.
Our Allied Health Therapy Services include occupational therapy, which is often the key service for functional assessments needed at NDIS planning, review, and transition. An OT functional capacity assessment documents how a disability affects daily functioning and strengthens planning at every stage.
Our Employment, Skills and Community Inclusion service supports people with disability to remain connected to community and work, relevant for NDIS participants approaching 65 who want ongoing participation goals in their plan.
Nhanya Foundation is a not-for-profit organisation and registered charity. Our services are guided by community benefit, not private profit. Any proceeds are reinvested into charitable activities supporting people experiencing hardship and disadvantage.
For current information on Nhanya’s NDIS registration, search the NDIS Commission Provider Register at ndiscommission.gov.au.
Contact Nhanya Foundation at nhanya.org.au/contact or call 03 8595 9012. Referrals can be submitted at nhanya.org.au/referral.
Frequently Asked Questions About Aged Care vs NDIS
What is the main difference between aged care and the NDIS?
The NDIS supports people under 65 with a permanent and significant disability, providing individualised funding to purchase their own supports. Aged care supports people 65 and over with ageing-related needs, subsidising services through providers. A key difference is that the NDIS is not means-tested. Aged care involves an income and assets assessment that determines how much a person contributes to their care costs.
Can I stay on the NDIS after turning 65?
Yes. If you became an NDIS participant before your 65th birthday, you can remain on the NDIS after turning 65. There is no forced transition. However, if you permanently move into residential aged care after turning 65, you must leave the NDIS. The same applies if you start receiving permanent aged care home services after turning 65. This transition is permanent and irreversible.
Can I apply for the NDIS for the first time after turning 65?
No. You must be under 65 at the time of your NDIS access request. If you are approaching 65 with a disability that could qualify, apply before your birthday. Once you turn 65 without an NDIS plan, aged care is your pathway.
What is the Support at Home program?
Support at Home is Australia’s new aged care home services program, launched on 1 November 2025. It replaced the Home Care Packages Program and the Short-Term Restorative Care Programme. It provides eight funding classification levels based on assessed care needs, plus short-term pathways for restorative care, assistive technology and home modifications, and end-of-life care. Access is through My Aged Care on 1800 200 422.
Is aged care means-tested?
Yes. Aged care is means-tested. Services Australia assesses a person’s income and assets to determine their contribution to aged care costs. The NDIS is not means-tested. NDIS funding is allocated based on reasonable and necessary need, not income or assets.
What happens if I am under 65 and living in residential aged care?
You may be eligible for the NDIS if you are under 65 and living in residential aged care. The NDIA is committed to ensuring no one under 65 lives in residential aged care unless it is their genuine choice. An April 2026 AIHW report identified 12,300 younger people in this situation between 2017 and 2022. The NDIS can fund disability-specific supports within the facility and help with moving out. Call 1800 800 110 or speak with a support coordinator.
What is the transition process from NDIS to aged care?
Transitioning from the NDIS to aged care is irreversible, so planning is essential. Apply for an aged care needs assessment through My Aged Care first. Confirm your aged care services are in place. Only then notify the NDIA in writing of your intention to leave. Do not notify the NDIA before your aged care services are active. There is no transition overlap period and you cannot return to the NDIS once you have left.
