The Australian government recently announced a transformative $5.6 billion aged care reform package, which it describes as a 'once in a generation' overhaul of the current system.

This significant investment is poised to reshape the landscape of aged care services, focusing on enhancing the quality and accessibility of care for older Australians.

Prime Minister Anthony Albanese heralded the reforms as the sector's 'greatest improvement' in three decades, with an optimistic projection of $12.6 billion in savings over the next ten years.

The heart of the reform is a substantial $4.3 billion allocation for in-home services, set to take effect on 1 July next year.

The federal government has announced $5.6 billion in aged care reforms. Credit: Shutterstock

This move underscores seniors' growing preference to live independently at home for as long as possible and the government's commitment to supporting this choice.

The new Aged Care Act, which is expected to pass with bipartisan support, will introduce changes that impact funding for residential aged care.

A key feature of this legislation is the 'no worse off' guarantee, ensuring that individuals currently in aged care will not face increased costs for their care.

Additionally, the government has pledged to implement stronger measures to investigate and penalise misconduct by aged care providers.

Prime Minister Albanese emphasised the importance of caring for the generation that has contributed so much to society.

‘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,’ he said.

‘More Australians are living longer, and that is a good thing.’

‘But I know that older Australians worry about going into aged care, and I know that their children and grandchildren worry about it as well.’

'This is about caring for the generation that cared for us.'

Aged Care Minister Anika Wells outlined the new Support at Home program, which aimed to significantly reduce the waiting time for in-home care to a maximum of three months by July 2027.

The program will encompass a range of services, including clinical care (such as nursing and occupational therapy), assistance with independence (help with showering, dressing, or medication management), and support for everyday living tasks (like cleaning, gardening, shopping, or meal preparation).

The government has committed to covering 100 per cent of the costs for clinical care services, while individuals will contribute more towards the costs of independence and everyday living services.

The financial implications of the reform will see self-funded retirees and part-pensioners contributing more, while fully supported pensioners will be exempt from the increased charges.

The net impact of these changes is projected to be a $930 million expenditure over four years, with the long-term view of achieving substantial savings and efficiencies.

In other news, significant reforms to Australia’s aged care sector may face delays, with a new implementation timeline potentially pushed to January or July 2025.

Leaked documents suggest that the rollout of the changes recommended by the Royal Commission into Aged Care Quality and Safety remains to be determined. You can read more about it here.

Key Takeaways

• The federal government has announced comprehensive aged care reforms with a $5.6 billion investment.
• The reforms include a $4.3 billion allocation for the Support at Home program, set to commence on 1 July next year.
• The new Aged Care Act is expected to pass with bipartisan support and introduce measures for better funding and regulation in aged care.
• The reform aims to significantly improve the aged care system, ensuring savings and enhanced support for older Australians and their families.

How do you feel about the government's plan? Do you believe it will improve the quality of care for older Australians? Are you concerned about the potential financial impact on your retirement plans? Feel free to express your thoughts and opinions in the comments below.

 

[MIZMAC]

I don't mind paying a small amount towards the cost of vacuuming my home provided the job is done properly. I opted out when I had someone come to clean who was not allowed to move anything to vacuum properly. That included vacuuming around the dining room chairs instead of moving them so she could vacuum under the table, not moving a heater (on wheels) in my bathroom or closing the door so the floor could be cleaned properly etc. etc. etc.

Unless the job is done properly then there is no point in doing it at all as the crumbs etc that would be on the carpet under the table would just be an invitation for rodents & flies to come in for a free feed. I was always taught that if a job is worth doing it's worth doing well but that does not seem to be the mantra of the companies who are responsible for these workers.

Iam aware of stupid limits in what these people can do to help us , but that is plain laziness. Mine don't dust in case they break something. They do not remove cobwebs even though I have a long handled cob web remover. As we are older and frailer they are not to do the things we need most help with.

 

[Jest]

I will believe when it happens. at present these outfits are run by inapt people. full of the gab and no action. so many people suffering and YES i know so many rorting the system.

My Dad lived to one month short of 101 and for all his 10 years of living in a home he had to pay his own way due to having the finance to do so. He farmed from 16 years of age up to 90 and paid his taxes throughout. There was not one month of relief from the NZ government. A person who used to work for my Dad was in a room next to him and due to finances only paid his part super. We as adult children were given money and had to make sure we still had it to pay for our Dad if he ran short. It did not happen but made me very wary. Life sure is sweet but has many barbs.

 

[Penny4]

I assume that aged people who receive a full pension won't have to be concerned, as well as rich people. It's the self funded middle class that appears to be affected the most with these changes. I do hope it doesn't become like America's aged care homes/system. If people can't afford it, they get kicked out.

 

[Clancieblue]

I have a number of reservations about these changes.
Firstly - where are they going to get the staff to work in homes. A friend recently broke her wrist and was unable to shower, do cleaning duties etc for 2 months yet when she contacted Centrelink she was advised thy had no-one that would be able to assist her as there was no availability of staff.
Second - I worked extremely hard to ensure I had a freehold house in which to live by the time I reached retirement age. My husband passed suddenly at the age of 44 leaving me to raise our 2 children alone. I never remarried and did raise the children to be good responsible adults who now contribute to society themselves. I did not have a degree so didn't earn a huge amount of money but despite this, by going without unnecessary thing I did succeed and I do own my home.
Third - This process has been in place for some time in NZ. Not sure of the exact details of how it works but from what my mother told me the principals are the same. If you own your home you have to pay for care to some extent and if you were smart and accrued wealth you have to pay for everything but if you have chosen to live life and not worry about the future you still get the same care others do. What incentive is it for people to try to improve their lives?
I hope to be able to stay in my home until such time as I pass and preferably before I become a burden to others but I don't believe the future is a bright one when the time comes for me to need assistance.
I know there are good carers out there - one of my children is one of them - but I also know there are many that aren't as well.
As for the restrictions on what the cleaners are allowed to do - e.g. no dusting, no moving anything etc. Most of us that are in the older bracket are very particular about the way things are done - and yes- I know- we are considered to be "fussy" but that was how we were raised. If a job is worth doing it is worth doing well.
It will be an interesting time!!

Don't understand why someone would contact Centrelink for care. Need to contact my aged care or the Community care group in your area. If your friend was aged, the hospital should have organized a social worker to assist, not usually able to leave hospital under those circumstances.

 

[mOiOz]

Sometimes the family members can no long cope. I was in my 70s, caring for my mother in her 90s when she was placed in a home. I could no longer physically or mentally cope with her care without affecting my own health. It was not an easy decision, believe me, & I shed many tears in the months leading up to the final decision to place her in a home. Please don't blame family members for placing their elderly parents in care unless you know the whole circumstances behind that decision.

True! Especially with Dementia, which so many have.

 

[grundig]

I will wait and see.
jUNE

 

[Reet]

This is catastrophic. it is equivalent to a death tax because not only does it affect aged people but also their kin because it is anti wealth. Offspring will be deprived of a minimum of $260000 as their aged parents incur these new costs. Unfortunately even the Liberal party has fallen for the trap. What is the point of accumulating savings in your lifetime if this is the outcome. Current aged people have grown up and worked under a system where it was the responsibilty of Government ,after it collected substantial taxes from the aged during their lifetime, to provide this support. Now it is shovelled back as a “tax” on the aged who have been burdened with taxes through all their working life. it is even being applied to house ownership( that’s a wealth tax as well) but to aged people with quite low assets/income such as part pensioners. They don’t tell you this but every part pensioner who owns a home will definitely need to contribute at a very high cost level for independence. It is ok to spend government funds astronomically on defence and pet Government projects but not to provide for the aged. Missiles are more important than you and your ageing parents. No wonder this country is in a mess. All these politicians care about is themselves. High salaries, great superannuation, lifetime perks and jobs after their retirement. Australia please STAND UP and be counted. What a disgrace.

What happens to those who have no family to help out? As we get older so do our children but the government in their wisdom have started to put the retirement age up and so older people at work will struggle to cope both health-wise and financially when it comes to their retirement. This government and in particular Mr Albanese are all out for themselves because they know whatever their circumstances when they retire from parliament, they will always have a large pension to look forward to.

 

[wendell]

Some of these aged care providers are just plain criminals. So much funding wasted on administration and non required staff. Coordinators that do stuff all , being paid up to $85000 a year, Mentors lol, who go from meeting to meeting with absolute dribble earning upwards of $100.000. This lot is never at work, always on RDO or leave. The list goes on.

I don’t think that is true for all providers I know the one I belong to do their best for clients to provide them with what they need I know fees are higher if you have a manager
I know I haven’t gone back to self manager since I lost my husband 2 yrs ago , but my manager is doing a good job. If that wasn’t happening i would go back to self manage I know having MAC package is a blessing You do have to apply even though their is a wait it is worth it .

 

[BellaB18]

This is all very good on paper. I have requested an aged care assessment but been told I am not eligible for one as I only need help with 2 things & need 3 to qualify. I need a rail on my back steps for safety (I have fallen down them once recently. I also fell up my side steps recently as I tripped on one step) & a medi-alert so someone can be aware that I have fallen & may need assistance. I took a bit of a tumble yesterday as I was trying to tidy up my yard & I really had difficulty in getting up again without something to grab onto to pull myself up. I live alone so I am not asking for much but was told to find a local person (hahaha) to make a rail for my steps which I would have to pay for without assistance from the govt.

Albo has made all the right noises but this is all because there is an election coming up & he wants the "grey power" vote & after he has that then these changes will go on the back-burner & will take forever to be implemented - if they ever are.

Elaine, you poor darling, falling is terrible very frightening. I know l have had 15 and cannot get up without help. That is terrible you don't qualify what a load of rot. Maybe say you need help with cleaning as well so you can qualify for safety rails you need. They should be sending sending an occupational therapist to go through your home and putting in what you need. Not good enough.
Take care darling would a walking stick give you a bit more stability? Or a crutch? Just a thought.
Kind regards Vicki

 

[Cool Lynda]

I was assessed as needing 1 hour per week,but am only getting 1 hour per fortnight, through community care...
Ie... Labor subsidised.
They can't get enough staff...
They don't pay enough and overwork Their staff.
I sometimes go without, because I am fussy about who comes to do my care.
So they might allocate my carer to someone else, I miss out. Then wait for my rotation, again.

 

[Emwick]

I do not see the long opinion/comment that I twice submitted here yesterday
and which I took the time and trouble to edit. And several comments I just read here now mirror exactly what I put down.
Please, I'd like to know - does Seniors Discount Newsletter vet and censor our feedback? This discourages me from ever sending feedback again!!! I hope I get a reply from newsletter Staff. Thank you!

Emwick

 

[Ellev]

I don’t think that is true for all providers I know the one I belong to do their best for clients to provide them with what they need I know fees are higher if you have a manager
I know I haven’t gone back to self manager since I lost my husband 2 yrs ago , but my manager is doing a good job. If that wasn’t happening i would go back to self manage I know having MAC package is a blessing You do have to apply even though their is a wait it is worth it .

Hence the word . Some.