THE Australian Government has announced historic reforms to the aged care sector, aiming to enhance the quality and accessibility of services for older Australians. Set to take effect from July 1, 2025, the $5.6B reform package includes the new Support at Home program, designed to assist approximately 1.4M seniors by 20235 in maintaining their independence while living in their own homes.
Key changes include a lifetime contribution cap of $130,000 for non-clinical care costs, ensuring financial security for seniors. The government will cover 100 per cent of clinical care costs, making essential medical services accessible to all, regardless of income. The reforms also introduce stronger regulatory measures to protect the rights of older Australians, including a Statement of Rights and an independent Complaints Commissioner.
In addition, the new system aims to reduce wait times for care, provide tailored support based on individual needs, and offer funding for home modifications to enhance safety. By focusing on home care options and promoting independence, these reforms reflect a commitment to improving the lives of older Australians, ensuring they receive the dignity and support they deserve as they age. This comprehensive approach seeks to create a sustainable and responsive aged care system for future generations.
Minister for Aged Care, Anika Wells, said, “We’ve heard the message from older Australians: they want support to stay in the homes and communities they love.”
“Older Australians built this country, shaped our economy, did the hard yards. They embody the strength and spirit of our nations,” said Prime Minister Anthony Albanese. “Our government is working to ensure that the aged care system that supports them is stronger now and sustainable into the future.”
At a glance:
$5.6B will be invested in a reform package, which includes $4.3B investment into Support At Home, to come into effect on July 1, 2025. Support At home will provide support for independence, clinical care and everyday living.
The Government will pay for 100% of clinical care services, with individual contributions going towards independence and every day living costs. How much someone contributes will be based on the Age Pension means test and highly dependent on their personal circumstances, from the level of support needed and contribution of income and assets.
A lifetime cap will apply across the aged care system, meaning no one will ever contribute more than $130,000 to their non-clinical care costs whatever their means or duration of care.
Essential changes to improve the funding, viability and quality of residential aged care, including larger means-tested contributions and a higher maximum room price that is indexed over time.
A ‘no worse off’ principle to provide certainty to people already in aged care and they won’t make a greater contribution to their care and treatment of the family home won’t changes
New laws to protect older Australians in aged care, with stronger powers to investigate bad behaviour and civil penalties for breaching standards.
