Activities of Daily Living (ADL) in Australia: 2025 Guide

Activities of Daily Living (ADL) aren’t just clinical jargon—they’re the backbone of how Australians access support, insurance, and aged care funding. Whether you’re planning for the future, helping a loved one, or managing a chronic condition, knowing what ADLs are (and how they’re assessed) can have a direct impact on your finances.

What Are Activities of Daily Living (ADL)?

ADLs are the basic self-care tasks we all do every day. They include:

• Bathing and showering

• Dressing

• Eating (not including meal preparation)

• Transferring (getting in/out of bed or a chair)

• Continence (bladder and bowel management)

• Toileting (getting to and using the toilet)

Loss of ability in one or more ADLs can be the trigger for government support, insurance payouts, or aged care placement.

Why ADLs Are a Financial Game Changer in 2025

In 2025, Australia’s aged care and disability support systems are more focused than ever on ADLs. Here’s why they matter:

• Aged Care Funding: Eligibility for subsidised home care or residential care is often based on ADL assessments. The new Aged Care Act, rolling out mid-2025, puts ADL needs front and centre when determining care packages.

• NDIS and Disability Support: The National Disability Insurance Scheme uses ADL limitations to determine funding levels for support workers, assistive technology, and home modifications.

• Insurance Claims: Life, trauma, and income protection insurance policies frequently require proof of ADL impairment for benefit payments. In 2025, several major insurers have tightened definitions, requiring greater evidence of sustained ADL inability for claims approval.

Real-life scenario: If you (or your parent) can no longer shower or dress independently, that could mean access to a higher-level Home Care Package, or a successful claim on a trauma insurance policy. But if you’re only struggling with meal prep or household chores—not classified as ADLs—you might not qualify.

How ADLs Are Assessed—and Why It Pays to Get It Right

ADL assessments are typically carried out by occupational therapists or registered nurses, using standardised tools. In 2025, digital assessment platforms are increasingly being used, allowing for more consistent scoring and faster results. Here’s what you need to know:

• Be specific: Assessment is based on what you can do safely and consistently—not just once on a good day.

• Documentation matters: Keep medical reports, hospital discharge summaries, and OT assessments up-to-date. Insurers and government agencies often require these as evidence.

• Review regularly: ADL abilities can change over time. Annual reviews ensure you’re receiving the right level of care—and not missing out on entitlements.

With the 2025 reforms, some insurance policies now require a minimum of 2–3 ADL impairments (rather than just one) to trigger a benefit. This means accurate assessment and advocacy are more important than ever.

Financial Planning with ADLs in Mind

Whether you’re approaching retirement, managing a chronic health condition, or supporting family, factoring ADLs into your financial plan can help you:

• Budget for care: Knowing your likely ADL needs helps you estimate out-of-pocket aged care costs, especially with means testing changes in 2025.

• Choose the right insurance: Check your policies for ADL definitions and exclusions. Consider products that offer flexible benefits for partial impairments.

• Maximise government support: Stay informed about NDIS, My Aged Care, and state-based programs that use ADL criteria for eligibility.

Tip: If you’re planning ahead, seek a formal ADL assessment well before you need support. This can smooth the path for future claims or care applications.

The Bottom Line

Activities of Daily Living are more than a checklist—they’re a vital part of Australia’s social safety net, insurance landscape, and aged care system. In 2025, understanding ADLs (and how they’re assessed) is key to unlocking support, managing costs, and protecting your financial wellbeing.