Reform is Coming: What You Need to Know About the Latest Changes To Aged Care

On September 12, 2024, the Australian Government shared the details of a “once-in-a-generation” reform to the aged care system, with a $5.6 billion investment from the government.

With the number of Australians aged over 65 set to double in the next 40 years, the reform aims to ensure the long-term viability of aged care services while addressing the growing needs of our ageing population.

As an aged care provider, Feros Care is committed to keeping you up to date with the latest information as we receive it. We’re here to help you navigate the changes ahead, which are all designed to ensure you receive safe, high-quality care.

Keep reading for more information on everything that was announced. You can also click here to subscribe to our email list for announcements about changes to aged care as we receive them.

1. The introduction of the Aged Care Bill 2024

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

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This bill replaces outdated legislation, bringing aged care in line with modern needs and the recommendations of the Royal Commission into Aged Care Quality and Safety.

2. The new Support at Home program

The new Support at Home program is set to launch in 2025, replacing current Home Care Packages and Short-Term Restorative Care.

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

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 from $11,000 up to $78,000 per year.
• Pathways for people needing restorative care or end of life care, and an extension to restorative care services, from 8 weeks to 12 weeks.
• 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, with up to $15,000 to make a home safer.
• Faster access to assistive technology like walkers and wheelchairs through a new equipment loan scheme.

The government will remain the major funder of aged care. They 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 be highly dependent on your personal circumstances – such as what level of support you need, along with the income and assets you have.

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 people already in aged care will not pay more under the new system. This applies to people who, on 12 September 2024, were receiving a Home Care Package, in the National Priority System, or assessed as eligible for a package.

3. Changes to residential care

There are also some changes coming to residential care, including:

• A new means-tested contribution for people coming into residential aged care, indexed twice a year, in line with inflation.
• A higher maximum room price (from $550,000 to $750,000) that is indexed over time.
• The retention of a small portion of refundable accommodation deposits by providers.

These are aimed to ensure new aged care facilities can open, build new facilities, and consistently improve their quality.

What does this all mean for you?

For older Australians, these reforms mean better care, more choice, and a system that puts your needs first. 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 disruption or increase in costs.

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.

At Feros Care, we support these positive changes for our clients, future clients and their loved ones. We will continue to keep you updated on any impact they may have on your care.

What happens from here?

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

If you are not already a Home Care Package client with us, there’s no need to wait for the new system to start a conversation with us about what you may currently be eligible for. Click here to get in touch.

If you live in one of our residential villages, the new contributions and accommodation arrangements will only apply to new entrants to residential aged care from 1 July 2025. Everyone in residential care on 30 June 2025 will maintain their current arrangements until you leave care.

Get more information

For more information, click here to join our mailing list to stay informed as these reforms roll out.

You can also click here to access our Reform Hub, which provides a full timeline of the changes that have occurred.

The Department of Health and Aged Care has extensive information about the new Aged Care Act available via their website here: https://www.health.gov.au/our-work/aged-care-act