Administration fees for aged-care home packages will be capped under further reforms to the sector, in a bid to prevent elderly Australians from being price-gouged.
Aged Care Minister Anika Wells announced the changes on Thursday, which will limit care management fees at 20 per cent, and package management charges at 15 per cent from January 1.
The government will also ban fees for recipients exiting the program or switching providers.
Providers will also be banned from charging separate brokerage and subcontracting fees.
Ms Wells encouraged providers to start planning for and talking to their recipients about the changes.
"A reduction in administration and management charges means more money in your package to pay for help around the house, personal and clinical care, assistive equipment, and other supports to stay safe and independent at home," she said.
"We are acting quickly to remove the most excessive charges and putting downward pressure on prices."
Council on the Ageing chief executive Ian Yates said it was significant reform, but inefficient operators needed to be weeded out.
"The government must also be alert to some providers trying to get around the caps by transferring fees to a loading on hourly service fees," he said.
"We need full pricing transparency, and it must be compulsory for every provider, with penalties for non-compliance. Too many providers are still ignoring this obligation."
As well, the government needed to ensure its pricing for services is adequate, so providers are receiving the appropriate level of subsidy, he said.
Last month, legislation was passed to mandate aged-care homes staffing a registered nurse 24/7.
