The government says the new Aged Care Act represents a “once in a generation” opportunity to safeguard the future and quality of Australia’s aged care network and to support the growing number of older Australians who want to stay in their homes as they age. How have the experts reacted?
Some of those receiving a part pension, as well as self-funded retirees, will be required to pay more for their future aged care under wide-ranging changes to the sector aimed at ensuring its viability.
The bill was passed with support from the Opposition, signalling the importance of getting aged care right for future generations.
But the government says nobody already receiving aged care will be any worse off and has ruled out any changes to how the family home is treated.
At the same time, support for people who wish to receive aged care services in the home – and not enter residential care – will be expanded.
The reforms involve $930 million in extra spending over the next four years, as well as $12.6 billion in savings over the next 11 years.
The government says it’s necessary, for those who can, to pay more for their care if the residential aged care sector is to find the $56 billion in funding recommended by the Aged Care Royal Commission by 2050 to upgrade existing aged care rooms and build the additional rooms that will be needed.
Over the next 40 years, the number of Australians aged over 65 is expected to more than double and those aged over 85 to more than triple.
What is changing?
As recommended by the royal commission, means-tested co-contributions will be expanded for new entrants to residential care, meaning those who can will be asked to pay more for their care.
There will be a higher maximum room price that will be indexed over time, and aged care providers will be able to keep a small portion of the refundable accommodation deposit that is paid when a resident enters care.
Support will also be expanded for those who wish to remain in their homes as they age, in the form of a new $4.3 billion Support at Home program that will come into effect on 1 July 2025.
Under Support at Home, the government will continue paying for all expenses related to clinical medical care. Some residents above a certain asset threshold will be asked to pay more towards living costs such as shopping and meal preparation, up to a lifetime cap of $130,000.
The program is expected to allow up to 300,000 additional participants over the next 10 years.
A new ‘statement of rights’ will also be introduced to protect older Australians in aged care, with providers expected to uphold those rights. There will also be new whistleblower protections and stronger regulatory powers to enforce those rights.
Proud pollies
Announcing the package alongside minister for aged care Annika Wells and Treasurer Jim Chalmers, Prime Minister Anthony Albanese called the changes a “once in a generation” opportunity to safeguard the future and quality of Australia’s aged care network and to “support growing numbers of older Australians choosing to retain their independence and remain in their homes as they age”.
“We are putting the care back into aged care,” he said.
“We’re announcing the greatest improvement in aged care in 30 years. At the heart of our government’s aged care reforms are a simple set of principles – providing dignity, choice, respect and quality of care to older Australians.”
Ms Wells said the government remained committed to funding the medical care of older Australians, but that it was appropriate some contribute to the cost of other support services.
“The government will pay 100 per cent of clinical care services, with people contributing towards their support services like help with showering, gardening or meal preparation.
“Older Australians will get support to spend their final weeks at home, surrounded by loved ones in an environment they cherish, instead of rushing precious moments into hospital visiting hours.”
The changes have been largely backed by aged care providers and older persons advocacy groups, with many praising the bipartisan nature of reforms.
Support from aged care providers
Sandra Hill, CEO of residential and home care provider Benetas, says the reforms provide much needed security for an industry facing many challenges.
“We commend the federal government and Opposition for showing their commitment to the aged care industry by reaching agreement on a range reforms that will unlock crucial funding for the sector,” she says.
“As our sector grapples with increased demand for services, against a backdrop of an ageing population with more complex health needs than ever before, the agreement provides hope for aged care providers and older Australians.”
Aged and Community Care Providers Association CEO Tom Symondson concurred, also congratulating parliament on being able to find common ground.
“We must congratulate both the government and the coalition for finding a way through after months of intense negotiations. They have put older Australians and the future of aged care above party politics,” he said.
“We will need at least 10,000 new beds to be opened per year for the next two decades to keep up with demand, and today we are closing more than we’re opening. We need investment to turn the situation around, and this legislation will enable that.”
Advocacy groups back plan
It hasn’t just been aged care industry groups backing the plan, with advocacy groups representing the interests of older people also lending their support.
Council on the Ageing CEO Patricia Sparrow says that while it took too long to get to this point, the fact that the Aged Care Act has now been introduced is a good thing.
“There’s no question that when it comes to aged care in Australia business as usual is unacceptable,” she says.
“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.”
Craig Gear, CEO of the Older Persons Advocacy Network, says the reforms have the potential to enhance quality standards, increase protections for older people and create a financially sustainable aged care system for future generations.
“What we have here are the building blocks for a safe, high-quality, financially viable aged care system for generations to come,” he says.
“We understand the government will continue to be the prime funder of aged care and clinical care.
“While some people may be contributing to their aged care via a sliding scale, we are keen to understand the efficacy of the safety nets and other financial protections for older people.”
What do you think of the new Aged Care Act? Is it fair to ask wealthier people to contribute more to their care? Let us know in the comments section below.
Also read: Have you looked into aged care planning? It may be time you started
All I can see is a government funding reduction per person. For p who worked and saved all their lives, now their pocket have a much larger hole thanks to this new policy. It’s not just that, even people on age pension now need to pay more.
Dead right Shooter, this reform has long been pushed for by the big aged care mobs. they get you into an aged care home and up goes the cost, especially when you are the only partner left, the family home has to go!! Remember their motto, “Bleed em Dry Before They Die”!!
Well said. The Govt should legislate these aged care homes if they care for the people. It looks like a very lucrative business as one can more and more aged care homes springing up everywhere.