Albanese government announces historic ‘once in a generation’ reforms to aged care

Seniors receive more support and freedom of choice to spend their old age with dignity.

The federal government will help Australians stay at home longer and improve conditions and protections for people living in care homes, following a ground-breaking deal with the Coalition.

Prime Minister Anthony Albanese says a $5.6 billion reform package will be the biggest improvement to aged care in 30 years.

“It’s about looking after the generation that looked after us,” he told reporters in Canberra on Thursday.

‘We will deliver historic reforms to aged care to ensure the viability and quality of our aged care system and support the growing group of older Australians who choose to maintain their independence and remain in their own homes as they age.’

A $4.3 billion package called Support at Home will come into effect from July and is expected to help 1.4 million Australians continue to live independently at home with support before moving into a care home by 2035.

It provides support with nursing, occupational therapy and daily tasks such as cleaning, showering, dressing and shopping.

The government pays all costs for clinical care, while individuals contribute according to their income to services related to daily living and independence.

Reforms have been announced to help Australians live at home longer and improve conditions and protections for people living in care homes (stock image)

Anthony Albanese has announced a $5.6 billion reform package that he says will be the biggest improvement to senior care in 30 years

Anthony Albanese has announced a $5.6 billion reform package that he says will be the biggest improvement to senior care in 30 years

There is a new lifetime contribution cap of $130,000 for non-clinical care costs.

People who use the Support at Home program can also receive $25,000 in support to spend their last three months at home instead of in a hospital.

The number of Australians over 65 is expected to double over the next forty years, and the number of people over 85 is expected to triple.

But residential aged care providers are struggling to stay afloat, with a task force report finding the sector needs $56 billion to upgrade facilities and build the additional rooms needed to meet expected demand.

The Labour government will implement reforms to ensure aged care providers can attract investment and keep facilities open.

Laws are being introduced to protect the rights of Australians living in care homes, and an oversight body with investigative powers is being established.

The rights of older Australians in aged care are set out in law, which care providers must adhere to.

New quality standards for elderly care are being introduced to improve the sector and increase the quality of care.

The number of Australians over 65 is expected to double over the next forty years

The number of Australians over 65 is expected to double over the next forty years

The agreement for elderly care provides for the principle that people who are already living in a care institution should not be worse off.

The changes will reduce annual growth in government spending on elderly care from 5.7 percent to 5.2 percent.

For every dollar a person in senior care contributes, the federal government contributes an average of $3.30 to residential care and $7.80 to home support.

Aged Care Minister Anika Wells said the changes would result in more services for older Australians.

“Our reforms will deliver better, safer care and help alleviate fears about a system that has been neglected for far too long,” she said.

Aged care providers are generally positive about the reforms, although some have suggested the new legislation should include criminal penalties for serious harm and neglect.