With significant federal aged care reforms due to take effect from 1 July, growing concerns are being raised about the financial strain they may place on older Australians — particularly pensioners. Aged Care reform sparks concern among Greek Australians.
Christina Tsobanis, a carer and advocate for her mother, who lives with Alzheimer’s, is among those speaking out. Her mother currently receives 16 hours of care a week under a level 4 home care package.
Although existing clients like her mother are covered by a “no worse off” safeguard, Tsobanis worries the new system will prove costly for newcomers.
“They’re already at their financial limits. They’ve worked their whole lives and paid their taxes,” she said.
The new Support at Home Program, supported by both major parties, will increase annual funding for those with the highest care needs from $60,000 to $78,000.
However, it also introduces co-payments for support services, with costs varying according to income and the type of care provided.
While clinical care will remain fully subsidised, supports relating to independent living and everyday needs will require personal contributions — up to 17.5% for full pensioners and as much as 80% for self-funded retirees.
Having thoroughly reviewed the changes, Tsobanis said that although her mother will remain under the current system, she has calculated that a new client in a similar situation would face around $200 in fortnightly co-payments.
“That kind of cost would force us to significantly reduce the services we receive,” she said, adding that navigating the hardship policy to request financial relief felt “humiliating.”
Jim Moraitis, who runs an aged care education and advisory service, said the reforms are causing widespread confusion and fear.
“The overall mood in our community is one of deep anxiety and frustration,” he said.
Many aged care providers currently waive fees to remain competitive, but Moraitis noted that a structured co-payment model would leave little room for this in future. He estimated that even full pensioners could be facing an extra $10 to $30 per week — a significant burden for those living on a $1,100 fortnightly pension.
“For someone surviving on the full pension, even a small co-payment can affect their ability to manage day-to-day,” he explained.
Moraitis also warned that some retirees — particularly those with complex financial situations or limited access to funds — might opt out of essential services altogether, which could lead to delayed care and added pressure on hospitals.
He advised against attempts to avoid fees by transferring assets to trusts or gifting money to family, pointing out that Centrelink counts such transactions as assets for five years.
“Anyone considering this should get proper financial advice to avoid unexpected consequences,” he said.
As the July changes approach, advocates such as Tsobanis and Moraitis are calling for clearer information, a simplified system, and greater awareness of the vulnerability faced by older Australians.
“They’ve worked their whole lives, and now, in their later years, they’re expected to justify their existence?” Tsobanis asked.
