Australia’s aged care system is set to undergo major reforms, following a historic agreement between the federal government and the opposition. After months of negotiations, a consensus was finally reached, ensuring the sustainability and quality of care for the nation’s growing elderly population.
Prime Minister Anthony Albanese announced on Thursday afternoon that the deal, long in the making, had been secured. This breakthrough follows initial resistance from the opposition, which had stalled the process the previous week.
The new Aged Care Reform Bill was introduced to parliament on the same day.
“We are implementing historic reforms to aged care, ensuring that the system remains sustainable and provides quality care. This will support the growing number of elderly Australians who wish to maintain their independence and continue living at home as they age,” Albanese said during a press conference.
Key benefits of the reforms
Under the new reforms, approximately 1.4 million Australians are expected to benefit from a revamped home support program by 2035. This initiative is designed to help older Australians remain independent in their homes and communities for longer.
The government will invest a total of $5.6 billion in a package of reforms, with three significant areas of change:
- $4.3 billion home support program: Set to launch on July 1 next year, this program will be the centerpiece of the reforms, focusing on delivering essential services to elderly Australians in their own homes.
- No deterioration rule: For those already receiving aged care services, the current levels of care and support will be maintained. There will be no changes affecting how family homes are managed within the care framework.
- Strengthened protections for the elderly: The new laws will also introduce stronger protections for elderly Australians in care, including stricter oversight to prevent misconduct. There will also be civil penalties for violations of care regulations.
Growing demand for home care
Treasurer Jim Chalmers highlighted the rapid growth in demand for home care services. Over the past decade, the number of Australians receiving care in their homes has quadrupled. With Australia’s aging population expected to increase significantly in the coming years, the pressure on aged care services is only set to rise.
“The federal spending on aged care is projected to double as a share of the economy over this period, making it one of the fastest-growing areas of government expenditure alongside health, the National Disability Insurance Scheme (NDIS), defense, and public debt interest,” Chalmers explained.
He further outlined that while the reforms would lead to an additional $930 million being spent over the next four years, the changes would save the government $12.6 billion over the next decade.
The government expects annual aged care spending to continue rising by an average of 5.2% per year, rather than the previously projected 5.7%, over the next decade.
“This means that as a share of GDP, aged care spending will be contained at 1.4% of the economy over the next decade, even as more people enter the system and the quality of care improves,” Chalmers emphasized.
