On 12 September 2024, the Australian Government announced a “once-in-a-generation” set of reforms to the aged care system involving a $5.6 billion investment. The reforms aim to address the growing needs of our aging population, as the number of Australians over 65 is set to double in the next 40 years. Their goal is to ensure the long-term viability of aged care services. This article summarises the announcement.

The introduction of the Aged Care Bill 2024

The Aged Care Bill 2024 was introduced to Parliament on 12 September 2024. It sets the foundation for a new Aged Care Act, transforming how aged care services are provided in Australia.

The new Act is a rights-based approach that places older people and their needs at the centre of the legislative framework. It is expected to commence on 1 July 2025, and will focus on:

• Improving care for older people in their homes, communities, and residential aged care facilities.
• Ensuring aged care providers offer high-quality care with better accountability and oversight.

This bill replaces outdated legislation, bringing aged care in line with modern needs and the recommendations of the Royal Commission into Aged Care Quality and Safety.

The new Support at Home program

The new Support at Home program will launch in 2025 and replace current Home Care Packages and Short-Term Restorative Care. Keep reading for information about when CHSP-funded recipients will move to the new Support at Home program.

This program, which provides tailored, flexible support to help people remain in their homes and communities longer, will benefit 1.4 million older Australians by 2035.

The program will provide a budget to older people, allowing them to access services and support.

Key features of the Support at Home program include:

• Eight levels of ongoing tailored support, with funding up to $78,000 per year.
• Pathways for people needing restorative care or end-of-life care and an extension of restorative care services from 8 to 12 weeks.
• There are three categories of support:

• • Clinical care (such as nursing)

• • Independence (such as help with showering), and

• • Everyday living (such as cleaning and gardening).

• Shorter average wait times from assessment to receiving support.
• Support for home modifications, up to $15,000, to make a home safer.
• Faster access to assistive technology like walkers and wheelchairs through a new equipment loan scheme.

What about CHSP-funded clients?

The Commonwealth Home Support Programme (CHSP) will transition to the new Support at Home Program no earlier than 1 July 2027 and continue as normal until then.

The staged approach will give all CHSP providers (like Neighbourcare) time to change their business systems and adjust to new payment arrangements. This will ensure they can operate successfully under Support at Home and avoid client disruptions.

CHSP recipients will receive more detailed information as the implementation date approaches, explaining how these changes will impact them.

Funding

The government will remain the primary funder of aged care. It will pay 100 per cent of clinical care services, with individual contributions going towards the other categories of independence and everyday living.

Individual contributions will be based on a means test and will depend heavily on your circumstances, such as what level of support you need and your income and assets.

You will only pay for the services you receive, with no daily fees charged by providers.

The reform includes a “no worse off” principle, ensuring that existing aged care recipients will not pay more under the new system. This applies to those currently receiving a Home Care Package, those waiting in the National Priority System, or those assessed as eligible as of 12 September 2024.

Changes to residential care

The reforms also include changes to residential care to streamline building and maintaining new aged care facilities. They include:

• A new means-tested contribution for individuals entering residential aged care, indexed twice a year to keep pace with inflation.
• The maximum room price increased from $550,000 to $750,000, adjusted over time.
• Providers can retain a small portion of refundable accommodation deposits.

What does this all mean?

These reforms mean better care, more choice, and confidence in a system that prioritises the needs of older Australians and their loved ones.

Families and carers can expect greater support, clearer guidelines, and a more transparent aged care system. And for those already receiving aged care services, the “no worse off” principle ensures no cost disruption or increase.

These changes reflect a significant shift towards a rights-based approach, ensuring that older Australians can access the support they need while maintaining their independence and dignity.

Where to now?

If you are already a Home Care Package client with us, the ‘no worse off’ principle applies to you. From 1 July 2025, you will move to the new Support at Home and maintain your level of funding.

Neighbourcare is dedicated to keeping you informed with the most current information. We are here to assist you in adapting to the changes and guarantee that you continue to receive safe, high-quality care.

Contact us today at 4992 3348 or via our online contact form.

More information

The Department of Health and Aged Care’s website has comprehensive information about the new Aged Care Act: https://www.health.gov.au/our-work/aged-care-act.

Remember, you can contact our friendly customer service team, support advisor or care manager for more information.

 

Live your best life with care at home,

 

Team Neighbourcare