Once in a generation aged care reform

First published: September 2024

On the 12th September 2024 the Albanese Government announced their plans to deliver historic aged care reforms, with $5.6 billion being invested into a package that will bring the greatest improvement to aged care in 30 years.

It is projected that within the next 40 years, those aged 65 and over will double, and those aged 85 and over will triple. The longevity of the population and average life expectancy is increasing, furthering our need for high quality, sustainable aged care services. The sector has seen a lot of changes in the past few years, from the aged care reform roadmap to the 15% pay rise in 2023. The need for aged care nurses to care for our elderly population is at an all time high, with workforce shortages across Australia sitting at at least 110,000. Fulfilling the aim of having a retained satisfied workforce will get harder with the age population growth, so this has been a key motivator for the reforms and changes to wages over the past few years.

Elderly persons wanting to remain at home

The announcement stated that by 2035, around 1.4 million Australians will benefit from a new Support at Home program, encouraging their independence by allowing them to remain in their homes for longer. Importance is being placed on keeping Australians happy, healthy and comfortable in their own environments, with Support at Home including:

• Clinical care
• Everyday living
• Independence

Alongside this, the program aims to offer more tailored support, shorter average wait times from assessment, modifications to make homes safer and fast access to technology in a new equipment loan scheme.

The Government plan to pay 100% of clinical care services, with individuals contributing towards the latter two.

These participants will also be eligible for up to $25,000 to spend their final three months at home so they can spend these precious moments with their loves ones.

Residents in aged care

For those in aged care homes, a ‘No Worse Off’ principle will be put into place. This means that they will not make a greater contribution to their care.

For every $1 an individual contributes, the Government will contribute an average of $3.30. The government will pay the majority of aged care costs over all, including 73% of residential care costs and 89% of Support at Home costs.

New laws for older Australians

Alongside the program, the new Aged Care Act includes laws that protect the rights of our elderly community. This includes:

• New Quality Standards for continuous improvement
• New whistleblower protections
• New duties to hold providers and people in positions of leadership accountable.

The current Australian prime minister, Anthony Albanese, has said “Our government is working to ensure that the aged care system that supports them is stronger now and sustainable into the future.”

This is on track to come into effect on the 1st July 2025.

Read the media release in full