Australia unveils $3.8b investment for aged care reforms

This includes a $2.9b allocation for a new “Support at Home” programme.

The Australian government is set to invest $3.8b (A$5.6b) in a reform package to improve the aged care system.

The investment includes a $2.9b (A$4.3b) allocation for a new “Support at Home” programme, set to begin on 1 July 2025.

From that period, the government will pay 100% of clinical care services, with individual contributions towards independence and everyday living costs.

Participants in the Home Care programme transitioning to the new system will retain their existing funding levels and any unspent funds.

Meanwhile, individuals receiving a Home Care package, on the National Priority System, or assessed as eligible for a package will continue making the same or lower contributions under the new initiative.

Furthermore, participants moving to residential care will remain on the current contribution arrangements unless they choose to switch to the new programme.

New laws will also be introduced to strengthen enforcement mechanisms, including expanded powers to investigate misconduct and civil penalties for breaches of standards.

The reforms are based on recommendations from the Aged Care taskforce, which called for a reasonable means-tested contribution from Australians towards the cost of their care.

A$1 = $0.68