A Quick Summary

Australia's aged care sector is undergoing transformative changes with the introduction of the Aged Care Bill 2024, a revised funding framework, and the Support at Home program, aiming to enhance care quality, provider accountability, and in-home support for older Australians, while ensuring financial sustainability and equity across the sector.

Australia’s aged care sector is undergoing transformative changes following major reforms introduced by the Australian Government in September 2024. These reforms include the introduction of the Aged Care Bill 2024, a revised funding framework informed by the Aged Care Taskforce recommendations, and the forthcoming Support at Home program. Here’s a closer look at how these changes will shape the future of aged care services and impact older Australians.

Aged Care Bill 2024: Setting New Standards for Care

The Aged Care Bill 2024 proposes the establishment of a new Aged Care Act, aimed at strengthening governance and improving care quality across the sector. The legislation introduces significant updates to ensure higher care standards and enhanced accountability among providers. Key elements of the Act include:

  • Improved Quality of Life: The Act prioritises personalised care, safety, and dignity for recipients across all settings, including home-based, community, and residential care services.
  • Stronger Provider Accountability: New obligations will require aged care providers to adhere to stricter care standards, with close monitoring to ensure compliance with these benchmarks.

The new Aged Care Act is set to be implemented on 1 July 2025, coinciding with the launch of the Support at Home program. Accessible resources, such as fact sheets and a plain-language guide, offer insights into the proposed changes, while a media release from the Minister for Aged Care highlights the objectives behind these reforms.

Government Response to the Aged Care Taskforce

In response to the Aged Care Taskforce’s final report from March 2024, which outlined 23 recommendations for creating a fairer and more sustainable aged care system, the Australian Government announced several initiatives. These include:

  • Updated Accommodation Payments: Revisions aim to balance affordability and quality in residential care costs.
  • Fairer Fee Structures: Adjustments to residential care contributions seek to reduce financial disparities across income groups.
  • Transitional Protections: Individuals in residential care as of 30 June 2025 will benefit from a “no worse off” principle, ensuring their out-of-pocket costs do not increase under the new framework.

Additional case studies and examples have been published to provide clarity on how these reforms will affect both residential and in-home aged care services.

Support at Home Program: Enhancing In-Home Care

The Support at Home program, set to commence on 1 July 2025, will replace existing initiatives such as the Home Care Packages Program and Short-Term Restorative Care (STRC) Programme. The program is designed to support older Australians in maintaining independence at home, with a projected reach of 1.4 million individuals by 2035. Its key features include:

  • Customised Funding Levels: Eight tiers of funding, capped at an annual maximum of $78,000, will cater to the varying care needs of recipients, enabling more tailored support.
  • Home Modifications and Assistive Technology: Funding will be allocated for essential home adjustments and quicker access to assistive tools, including through an equipment loan scheme, to facilitate safer and more independent living.

For individuals already receiving Home Care Packages or approved for a package by 30 June 2025, the transition to Support at Home will ensure continuity, with funding aligned to their current care levels. Unspent funds from existing Home Care Packages will remain accessible under the new program, providing financial stability during the transition.

Participants in the Commonwealth Home Support Programme (CHSP) will experience no immediate changes, as the full integration of CHSP into Support at Home is scheduled for post-July 2027. Transitional arrangements will ensure that contributions for those already receiving care as of 12 September 2024 remain consistent, avoiding any undue financial burden.

Implications for the Aged Care Sector

These reforms mark a significant step forward in reshaping aged care services in Australia. By prioritising personalisation, equity, and sustainability, the sector aims to deliver improved outcomes for older Australians while addressing long-term challenges in funding and service delivery.