In a major milestone for Australia’s aged care sector, the Australian Government introduced several pivotal reforms in September 2024. These changes include the introduction of the Aged Care Bill 2024, a revamped funding approach in response to the Aged Care Taskforce recommendations, and the upcoming Support at Home program. Here’s an overview of what these changes mean for the aged care landscape and older Australians.
Aged Care Bill 2024: A New Act for Enhanced Care Standards
The Aged Care Bill 2024 seeks to establish a new Aged Care Act, designed to update and improve the governance of aged care services in Australia. This legislation outlines fundamental changes aimed at enhancing care standards and accountability across the sector. Key objectives of the new Act include:
- Better Quality of Life for Aged Care Recipients: The Act seeks to uplift the quality of life for those receiving aged care services, whether at home, in community settings, or in residential care facilities. This will involve more personalised care and a commitment to dignity and safety for all aged care recipients.
- Increased Provider Accountability: Aged care providers will face stricter obligations to maintain high standards of care. Compliance with these new standards will be closely monitored to ensure that all providers consistently meet quality benchmarks.
The new Aged Care Act is expected to come into effect on 1 July 2025, alongside the introduction of the Support at Home program.
To learn more, resources are available including a plain language version and fact sheets providing further insights into the Aged Care Bill and its implications. The Minister for Aged Care has also issued a media release detailing the intent behind the reform.
Government Response to the Aged Care Taskforce: Funding and Support Improvements
Following the release of the Aged Care Taskforce’s final report in March 2024, which outlined 23 recommendations to create a more equitable and sustainable aged care system, the Australian Government responded with a set of planned reforms. Key areas addressed in the government’s response include:
- Accommodation Payments: Updated guidelines aim to balance affordability and quality in residential care accommodation fees.
- Residential Care Contributions: Changes are aimed at creating a fairer structure for residential care fees, reducing disparities between different income levels.
- Transition Protections: For those in residential aged care as of 30 June 2025, transitional arrangements under a “no worse off” principle will be introduced, ensuring that individuals do not experience higher out-of-pocket costs due to the reforms.
The government has published additional case studies and examples illustrating how these changes will impact residential care and in-home support services, providing clarity on what individuals can expect as the system transitions.
Support at Home Program: Expanding In-Home Support
The Support at Home program is set to replace the current Home Care Packages Program and Short-Term Restorative Care (STRC) Programme as of 1 July 2025. This comprehensive program is designed to support Australia’s ageing population in maintaining independence at home for as long as possible, with an anticipated reach of 1.4 million Australians by 2035. Key features of Support at Home include:
- Tiered Funding Levels: The program will offer eight levels of funding, tailored to individual needs, with an estimated annual funding of up to $78,000. This allows for more personalised support based on the care requirements of each recipient.
- Home Modifications and Assistive Technology: To enable safer living environments, the program will provide funding for essential home modifications. It will also facilitate quicker access to assistive technology, including through a new equipment loan scheme, making it easier for older Australians to receive the tools they need to live independently.
Those currently receiving a Home Care Package, on the National Priority System, or approved for a package by 30 June 2025 will transition into the new program with budgets aligned to their current or approved care levels. Under the Support at Home program, recipients will retain unspent funds from their existing Home Care Packages, providing continuity and financial stability.
Transitional arrangements are in place for participants already approved for home care services as of 12 September 2024, ensuring contributions remain at a similar level to avoid any financial disadvantage. For those receiving services through the Commonwealth Home Support Programme (CHSP), there will be no immediate changes, as CHSP will not fully transition to Support at Home until after 1 July 2027.