Last updated 27 November 2024
New Aged Care Bill passes Parliament
On November 25, 2024, the Australian Parliament passed the Aged Care Bill. The new Aged Care Act was a key recommendation of the Royal Commission into Aged Care Quality and Safety.
The Act will start from 1 July 2025. It will bring a range of improvements for older people with a significant shift to a more compassionate, person-centred system of care.
As an aged care provider, Catholic Healthcare is committed to keeping our residents, clients, families, and carers informed as these significant changes unfold. We are here to guide you through what the new Act means and how it will affect the services you or your loved ones receive.
Key updates you should know (last updated 27 September 2024)
1. Introduction of the Aged Care Bill 2024
The Aged Care Bill 2024 was introduced to Parliament on September 12, 2024, and lays the foundation for a new Aged Care Act. This new law, due to start on 1 July 2025, focuses on the rights of older Australians and aims to improve the quality and safety of aged care services.
Key points include:
- Better care in homes, communities, and residential aged care.
- Increased accountability and oversight for aged care providers.
- New standards based on the recommendations from the Royal Commission into Aged Care Quality and Safety.
Changes to funding and increased contributions from some individuals who can afford them.
2. New Support at Home program
From 1 July 2025, the Support at Home program will replace Home Care Packages and Short-Term Restorative Care.
Key features include:
- An increase from four to eight levels of funding, ranging from $11,000 to $78,000 per year.
- Extended restorative care services, from 8 weeks to 12 weeks.
- Quarterly funding and budgets available for three categories of services: clinical care, independence (e.g., help with showering, getting dressed or taking medication), and everyday living (e.g., cleaning, gardening meal preparation).
- Home modifications support of up to $15,000.
- Assistive technology funding of up to $15,000 and faster access to assistive technology through a new equipment loan scheme.
Those clients already on a Home Care Package or in the national queue for a Home Care Package as of 12 September 2024 will be protected by ‘no worse off’ provisions. This means they will not need to be financially disadvantaged by the change. Persons entering the queue after 12 September 2024 will be subject to means testing which will determine any contributions they may need to make.
The Support at Home program is designed to help more than 1.4 million older Australians stay independent at home for longer.
3. Changes to residential aged care
For those entering residential aged care after 1 July 2024, there are also significant changes including:
- New means-tested contributions for those who can afford them, indexed twice yearly.
- A potential higher maximum room price.
These updates will ensure continued quality improvements and growth in aged care homes to meet future demands.
What happens next?
- If you're currently a Home Care Package client, you will automatically transition to the new program on 1 July 2025, in such a way that you will be ‘no worse off’.
- If you’re not yet receiving care, there’s no need to wait until 2025 to explore what services you may be eligible for under the current system.
For our residential aged care clients, the new contribution rules will only apply to new entrants from 1 July 2025.
Get more information
For more information or discuss your situation, please contact us to stay informed as these reforms roll out.
You can also click here to follow our Facebook page, where we will be posting the latest updates with information linked on this page.
You can find the history of the aged care reform changes here.
The Department of Health and Aged Care has extensive information about the new Aged Care Act available via their website https://www.health.gov.au/our-work/aged-care-act
