Everything you need to know about the Federal Government’s new aged care reforms

Older Australians will soon have more support and options to enjoy their golden years with dignity, thanks to a landmark agreement between the Federal Government and the Coalition. This breakthrough will enable Australians to stay in their homes longer and improve care and protections for those in aged care facilities.

A key part of the $5.6 billion reform package is the Support at Home program, set to launch in July 2025. This initiative aims to help Australians live independently at home with assistance before entering aged care. Over the next decade, it’s estimated that 1.4 million people will benefit from the program, with the government committing $4.3 billion to its rollout.

The Support at Home program will offer essential services, including clinical care such as nursing and assistance with everyday tasks such as cleaning, showering, and dressing. Additionally, a new lifetime contribution cap of $130,000 will be introduced for non-clinical care costs.

The government will cover all clinical care expenses, while individuals will pay for non-clinical services, with fees adjusted based on income. For those in their final three months of life, the program offers up to $25,000 in support, allowing them to remain at home rather than in a hospital.

The reform package also ensures that those already in aged care facilities will not be disadvantaged, adhering to a “no-worse-off” principle that will ensure residents won’t make a greater contribution to their care. New laws will protect the rights of aged care residents, backed by a regulator with investigative powers. Providers will also have a duty to uphold a statement of rights for older Australians, with enhanced quality standards implemented across the sector.

Finally, for every dollar a person in aged care contributes, the government will contribute an average of $3.30 to residential care and $7.80 for Support at Home.

The long-awaited reforms are expected to put “the ‘care’ back into aged care” according to Prime Minister Anthony Albanese.

“Older Australians built this country, shaped our economy, did the hard yards. They embody the strength and the spirit of our nation,” he said.

“Our government is working to ensure that the aged care system that supports them is stronger now and sustainable into the future.

“Reforms like this do not happen every day. They are once-in-a-generation, and my Government is proud to deliver them, as we said we would.”

Advocates have warmly welcomed the newly announced reforms. Chief Executive Officer of COTA Australia Patrica Sparrow emphasised that the Aged Care Act is essential for delivering long-awaited rights for older individuals, ensuring their voices are central to the aged care system.

“We need an Aged Care Act that enshrines the rights of older people. While there is still much detail to go through, it appears the Act includes vital measures required to do that including mechanisms for monitoring and enforcing the rights of older people; the introduction of a person-centred, robust and effective complaints system; detail on how rights will be embedded into daily aged care operations; and a shift to supported decision-making becoming the foundation in aged care so there is an assumption that older people can make decisions for themselves,” Sparrow said.

“The focus on Support at Home is very welcomed. A $4.3billion investment in Support at Home is vital to ensuring Australians can age at home if they want to and should reduce the unacceptable time people currently have to wait for care at home.

‘We need a sustainable aged care system that allows older Australians can access quality care when and where they need it. We need to review the detail of the Aged Care Act in its entirety to make sure that is the case across the board, but the fact that we’ve got to the point where we can investigate that detail is fantastic.

“For too long older Australians, whether due to systemic ageism or other factors, have not been given ownership of their lives when the time comes for them to access aged care. It’s time that changed and this Aged Care Act will go a long way to ensuring that.”

-with AAP.