Everyone should have access to quality care and support as they grow older, whether they choose to stay in their own home or transition to an aged care facility. The forthcoming reforms in aged care are designed to offer personalized, high-quality care that is easily accessible and tailored to individual needs.
After conducting numerous consultations, surveys, and community events, the Department has gained a clear understanding of the desires of older Australians:
- Enhanced choice and control
- Fair and reasonable costs
- Robust protection and the preservation of your rights
- The assurance that concerns and complaints will be addressed seriously and without repercussions
- Transparency and accountability from service providers
These reforms are designed to ensure that the aging population receives the care and support they deserve, with a focus on individual needs and preferences.
These changes are crucial for all Australians. It is essential for us to feel assured that we will have access to affordable, safe, and appropriate support as we grow older. That is why the department is implementing consumer confidence protections. Learn more about these protections below.
Choice and Control in Aged Care
The recent changes to aged care have placed older individuals at the forefront of the system. This means that you will now have greater autonomy in selecting the services you wish to utilize, as well as more control over how you allocate your funding.
Decision-Making under the New Aged Care Act
The updated Aged Care Act prioritizes the rights of older Australians within aged care legislation. These rights are now legally enforceable by the Aged Care Quality and Safety Commission and the Complaints Commissioner.
The new Act also includes a Statement of Rights specifically for older Australians. This statement outlines your entitlement to make decisions regarding your care and finances, as well as the option to designate a support person if needed.
Star Ratings for Aged Care Homes
Star Ratings have been implemented to assist you in comparing the quality, safety, and services offered by different aged care facilities. By utilizing the Find a Provider tool, you can access detailed information about specific aged care providers, including their Star Rating. This valuable information empowers you to make informed decisions that align with your individual needs and preferences.
Introducing the New Support at Home Program
As we age, the desire to remain in the comfort of their own homes becomes increasingly important. Recognizing this, a new Support at Home program has been established to cater to the needs of approximately 1.4 million older individuals, with a focus on promoting supported and independent aging.
Contributions made by participants
Aged care providers are now required to be transparent about the costs associated with their services, including publishing their prices online. Additionally, exit and entry fees, as well as other hidden fees, have been prohibited for home care services.
Individuals receiving Support at Home services will now receive monthly statements detailing the hours of each service provided, along with the associated costs charged to their Support at Home budget and any participant contributions made.
Before moving into residential aged care, the providers must ensure that all care costs are clearly outlined to potential residents. Residents will still have the freedom to choose additional services, with added protections in place to prevent being charged for services they do not want or cannot use. Discrimination based on a person’s ability to pay for extra services is also prohibited.
Free advocacy and legal services
Advocacy and legal services are free and available for older Australians, their families, and caregivers through funding from the Australian Government. Advocates can represent you and assist in resolving any issues you may be facing. Organizations such as National Seniors, the Council on the Ageing (COTA), and the Older Persons Advocacy Network (OPAN) offer valuable resources and support.
If you or someone you know is experiencing feelings of unsafety while receiving aged care, there are free services provided by lawyers, social workers, and other specialists to help. It is important to educate yourself on protection against elder abuse and seek assistance when needed.
Fairness in Aged Care Funding
To ensure the sustainability and fairness of aged care funding, significant changes are being implemented. The current funding arrangements are not adequate to support our growing and aging population, prompting the need for adjustments.
The government will continue to be the primary source of funding for aged care services. However, financially able individuals will be required to make a co-contribution to their care costs. The amount of this co-contribution will be determined based on the individual’s personal circumstances, level of support needed, and income and assets.
It is important to note that under the new co-contribution structure, there will be no changes to how the family home is treated. This ensures that individuals can still receive the care they need without risking their primary residence.
Ensuring Access to Quality Clinical Care
The government is committed to providing full funding for clinical care services in both aged care facilities and the Support at Home program. These essential services, typically administered by registered nurses, encompass vital aspects such as pain management and medication assistance.
In the Support at Home program, individuals will only be required to pay a co-contribution for the specific services they utilize. Co-contributions will be determined based on an hourly rate or unit of service, calculated as a set percentage of the total cost for each service category.
Transitioning to Price Caps
Beginning July 1, 2026, the government will gradually implement price caps on services within the Support at Home program.
Until July 1, 2025, providers of in-home aged care will retain the autonomy to establish their pricing structures for Support at Home services, mirroring the current setup in the Home Care Packages Program.
To promote fairness, co-contributions will be capped at $130,000 across both Support at Home and residential care, particularly benefiting individuals who require long-term care and make substantial co-contributions.
Co-contributions for non-clinical care services, such as assistance with mobility and lifestyle activities in aged care facilities, will cease after 4 years.
For every $1 contributed by an older person towards their care in the Support at Home program, the government will contribute approximately $7.80.
In aged care facilities, the government will contribute $3.30 for every $1 contributed by the individual.
The No Worse Off Principle
The Principle ensures that individuals accessing residential aged care services on or before September 12, 2024, will not experience any changes in their payments.
This principle also guarantees that those receiving a Home Care Package or deemed eligible for one by September 12, 2024, will not face any financial disadvantages when transitioning to Support at Home.
For full-rate pensioners who are currently not paying any fees under their Home Care Package, will continue to be exempt from fees under Support at Home.
If you were previously required to pay fees under your Home Care Package, the amount you pay under Support at Home will either remain the same or decrease.
Furthermore, individuals will retain eligibility to enter an aged care home under the existing fee structure, regardless of when they decide to make the transition. This ensures a seamless and fair process for all individuals to access aged care services.
Priority Funding for Those in Greatest Need
The funding allocation is designed to prioritize individuals with the most limited financial resources. For residents in aged care facilities, the basic daily fee is the only payment required. Furthermore, as a person’s income and assets decrease, so do the fees they are responsible for.
In cases of financial hardship where individuals cannot cover their fees or contribute to their care costs, government assistance will be provided to ensure continued support.”
Ensuring Transparency in Aged Care Funding
The Department prioritizes transparency in the allocation of aged care funding and co-contributions to ensure they are utilized appropriately. It is our commitment to uphold the highest standards of accountability and integrity in managing these resources.
Setting and Monitoring Prices for Aged Care Services
Aged care providers play a crucial role in delivering quality care to our elderly population. They receive funding to cover the costs of essential workers such as registered nurses, allied health professionals, and lifestyle officers.
To ensure fair pricing and sustainability in the sector, the Department collaborate with the Independent Health and Aged Care Pricing Authority (IHACPA) to establish prices for aged care homes, including hoteling services.
Additionally, the Department sets prices for Support at Home services starting from 1 July 2026.
Government Regulations on Contribution Levels
It is important to note that providers are prohibited from increasing contributions for services funded by the government beyond the levels set by the government. This regulation is in place to safeguard the interests of elderly individuals and ensure that they receive the care they deserve without facing financial burdens.
Cost Transparency in Aged Care
When it comes to your hard-earned dollars and the care you receive, transparency is key. With the Find a Provider tool, you can now easily track how your co-contribution is being utilized by providers in aged care homes and Home Care Packages. This includes details on spending for care, food, staff, and accommodation.
By making this information publicly available, you have the power to make informed decisions about which provider aligns best with your needs and preferences. The Department of Health and Aged Care, along with the Aged Care Quality and Safety Commission, closely monitor and audit provider financial reports to ensure accuracy. Providers who fail to report correctly face civil penalties, ensuring accountability and peace of mind for consumers.
Refundable Accommodation Deposits (RADs) Cap
To protect consumers, there is a cap on the amount providers can retain from RADs. Starting from July 1, 2025, providers can only keep 2% of their lump sum payment for each year they reside in an aged care home, up to a maximum of 5 years. This measure aims to guarantee that aged care homes have the necessary funds to enhance residents’ comfort, maintain existing facilities, and develop new ones.
Accountability
The department ensures that providers are held accountable for their actions, providing transparency regarding how funding is utilized.
Enhancing regulations
Recent regulations require providers to deliver services in accordance with the Statement of Rights, emphasizing the importance of person-centered care. Providers are expected to collaborate with older individuals, involving them in decision-making processes.
To receive government funding, providers must be registered and compliant with the Aged Care Quality Standards.
Providers who fail to meet their obligations will be subject to consequences under the new regulatory framework.
Confidence in Providing Feedback and Addressing Complaints
It is crucial to have the confidence to share feedback or make complaints if you have any concerns about the care, you or a loved one is receiving. The department understands the importance of open communication and are committed to providing avenues for providers to address feedback and complaints effectively.
If you find yourself in a situation where you are unable to resolve a concern or complaint by discussing it with your service provider, the Aged Care Quality and Safety Commission can assist you in finding a resolution. Additionally, if you believe that your rights have not been upheld by your provider, you have the option to make a complaint to the independent Complaints Commissioner.
Both older Australians and workers are protected by whistleblower laws, ensuring that they can report information confidently without the fear of facing punishment or unfair treatment. This protection is in place to encourage transparency and accountability within the aged care industry.
Inspector General of Aged Care
The newly appointed Inspector-General of Aged Care is responsible for overseeing the aged care system and identifying any potential issues. This includes monitoring the regulation, funding, and administration of aged care services.
The Inspector General’s office operates as an independent agency, dedicated to ensuring that the aged care system remains robust, accountable, and transparent. Their primary goal is to meet the needs of older individuals, their families, and caregivers.
One of the key initiatives introduced by the Inspector General is the implementation of a cap on the amount of funding that can be allocated towards care management within aged care packages. This measure aims to streamline the allocation of resources and improve the overall quality of care provided.
Participants in the Support at Home program will now have access to care management services. Those receiving ongoing care will have 10% of their quarterly budget pooled with their service provider to facilitate the delivery of care management. Additionally, there will be supplementary funding available for individuals with diverse care needs.
Overall, the Inspector General of Aged Care is committed to enhancing the quality of aged care services and ensuring that older individuals receive the support they require to live fulfilling and dignified lives.