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.

 

[Sengstock]

Just a question how is Probate worked out & cost for qld residents as I have been told it's different in each state. Regards Gayle

 

[Judi-Ann]

It will help me as when I had this house built for.yself many years ago I had it include all safety
Measures to ensure that I could live init for ar long as humanly possible in old age.No steps easy access to yard and other outdoor facilities. No glass in onsuite etc.

 

[BellaB18]

We can all only live in hope.
Kind regards to all Vicki

 

[Anthony Ellul]

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.

 

[Glenys R]

Try to avoid aged care at all costs! no homes. These places are death camps - people suffer from near starvation, wrong medication, not being washed, falling out of bed, general neglect - all while the so called carers enjoy life! No one in an aged care home wants to be there. Live alone even if you have no one - you are better off - manage as best you can with whatever help you can get! People will think my comments are terrible but from what I have seen of various cases on tv etc. - plenty of people have lost loved ones from neglect of one kind or another! Untreated ulcers, bed sores etc. - so many horror tales in the so called homes!

 

[Ellev]

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.

 

[BellaB18]

It will help me as when I had this house built for.yself many years ago I had it include all safety
Measures to ensure that I could live init for ar long as humanly possible in old age.No steps easy access to yard and other outdoor facilities. No glass in onsuite etc.

That was a very wise thing to do. I wish l had the financial means to do the same with my little old house. I did have my shower updated with wet walls which l love so easy to clean and purposely kept the shower curtain because of fear of falling through a glass door. I would like the six steep steps removed at the front of my house. And if to the door ways were wider l would be using a wheelchair now instead of crutches. The walker is far to hard to use in my house.
Good on you for thinking ahead.
Kind regards Vicki

 

[Luckyus]

What's this government not telling you!!

 

[elaine41]

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.

 

[Isis]

Frankly no, but seeing is believing. I opted out of a package as they expected me to pay a daily amount out of my rather empty pocket.

 

[Dynamo]

Try to avoid aged care at all costs! no homes. These places are death camps - people suffer from near starvation, wrong medication, not being washed, falling out of bed, general neglect - all while the so called carers enjoy life! No one in an aged care home wants to be there. Live alone even if you have no one - you are better off - manage as best you can with whatever help you can get! People will think my comments are terrible but from what I have seen of various cases on tv etc. - plenty of people have lost loved ones from neglect of one kind or another! Untreated ulcers, bed sores etc. - so many horror tales in the so called homes!

Yes so many neglect stories. I hope it improves.

 

[elaine41]

Frankly no, but seeing is believing. I opted out of a package as they expected me to pay a daily amount out of my rather empty pocket.

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.

 

[Isis]

Try to avoid aged care at all costs! no homes. These places are death camps - people suffer from near starvation, wrong medication, not being washed, falling out of bed, general neglect - all while the so called carers enjoy life! No one in an aged care home wants to be there. Live alone even if you have no one - you are better off - manage as best you can with whatever help you can get! People will think my comments are terrible but from what I have seen of various cases on tv etc. - plenty of people have lost loved ones from neglect of one kind or another! Untreated ulcers, bed sores etc. - so many horror tales in the so called homes!

You arnt terrible so many stories about this. At 84 I am staying home until the death knock. Also where are these poor neglected souls families?

 

[Isis]

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.

Different for me, I have had two cleaners that should have angel wings. When I opted out of the system I paid privately, so worth having to cut back elsewhere

 

[Teach]

I am partially disabled but I visit Aged Care as a volunteer to speak to people who have no visitors. Families sometimes put elders into care and abandon them. I have seen no signs of abuse and/or neglect in the homes I visit and have every intention of entering one when I can no longer manage. The government's "reform" is too little, too late. Most homes are badly designed too; that is another area that should have been examined. Perhaps an extra one percent of taxation should have been put aside 20 years ago to go towards elderly care. it is not as though no one knew it was going to be needed.

 

[elaine41]

You arnt terrible so many stories about this. At 84 I am staying home until the death knock. Also where are these poor neglected souls families?

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.

 

[Clancieblue]

Try to avoid aged care at all costs! no homes. These places are death camps - people suffer from near starvation, wrong medication, not being washed, falling out of bed, general neglect - all while the so called carers enjoy life! No one in an aged care home wants to be there. Live alone even if you have no one - you are better off - manage as best you can with whatever help you can get! People will think my comments are terrible but from what I have seen of various cases on tv etc. - plenty of people have lost loved ones from neglect of one kind or another! Untreated ulcers, bed sores etc. - so many horror tales in the so called homes!

I have worked in fantastic, aged care facilities, with very caring hard-working staff, who went above and beyond. Yes, things sometimes go wrong, but it can go wrong at home as well. Residents do NOT live in death camps that is a horrific thing to say. I never saw anyone suffering from starvation. Residents in aged care were given 3 meals a day and morning and afternoon tea as well as supper if wanted. We had snacks available in the fridges all day. No one was refused any drink or food requested.

 

[Fedup pensioner]

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!!

 

[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.