Aged care reforms pass Parliament, paving the way for a better future for older Australians

Older Australians are set to enjoy their golden years with greater dignity and support after the Federal Government’s Aged Care Bill passed parliament.

The bill, which passed parliament on Monday, November 25, aims to provide in-home support and improve conditions and protections for those in aged care facilities starting in July, 2025.

By 2035, approximately 1.4 million older Australians will receive assistance with nursing, occupational therapy, and daily tasks such as cleaning and showering, enabling them to live independently at home.

To help cover the rising costs of care, individuals not currently in aged or home care will be required to contribute to non-clinical care expenses. The amount will vary based on their income and assets.

The maximum lifetime contribution for these independence and living costs will increase to $130,000, up from the previous cap of $76,000.

For every dollar contributed by someone in aged care, the Federal Government will provide an average of $3.30 towards residential care and $7.80 towards home-based supports.

The legislation also enshrines the rights of older Australians in aged care and introduces new quality standards for the sector. These reforms follow a royal commission that uncovered widespread abuse and substandard care within the industry.

According to Aged Care Minister Anika Wells, the $5.6 billion package “is the final piece of the puzzle to create a better way of caring for older people both today and into the future”.

“The Prime Minister said Labor would put the care back into aged care and we have kept our word,” she said.

“This process has been testament to our government’s unrelenting commitment to make positive, lasting change for older people who have spent their lives contributing to Australia.

“Now that we have followed through on our commitment to deliver a new Aged Care Act, it’s incumbent on all of us to live up to this promise and deliver meaningful change across aged care.

“We have established the Transition Taskforce to work with the sector in preparation for July 1 so we can all make the necessary changes to deliver better aged care.”

The changes have been welcomed by advocates with Acting Chief Executive Officer of COTA Australia Corey Irlam stating that the passing of the Aged Care Bill marks a turning point in the ongoing effort to eliminate neglect in aged care.

“It’s taken a long time to get here, but we finally have a new Aged Care Act in Australia – one that puts the needs of older people ahead of the needs of providers,” Irlam said.

“Older Australians have been calling for a new rights-based Aged Care Act for a long time, so it’s fantastic to see it finally delivered.

“The Royal Commission into Aged Care that started six years ago recommended a new Aged Care Act was the foundation Australia needed to stop the neglect of older people in aged care. Today we know on 1 July 2025 that foundation will officially be in place.

“We thank MPs and Senators from all parties, especially those who heard firsthand from older people as part of the Senate inquiry, for putting the rights and needs of older people front and centre throughout these reforms.”

-with AAP.