Aged Care Reforms
20 April 2012

Aged Care Reforms

April 20th saw the Federal Government announce aged care reform for the sector. Here is a break-down of the key measures and funding behind the aged care reforms.

$3.7 billion package of measures over five years:

> $1.9 billion for better access to aged-care services. 

> $1.2 billion to strengthen the aged-care workforce. 

> $268.4 million for dementia.

> $54.8 million to support carers.


Home care:

• Home Care subsidy package to be means tested from July 1, 2014; 'care fee' to be introduced.

• Family home will be exempt from means testing.

• Means testing to reduce government funding of package from 84 per cent to 76 per cent.

• Recipients to pay basic fee of up to 17.5 per cent of the single basic pension.

• Full pensioners won't pay care fee.

• Indexed caps of $5000 and $10,000 will apply to care fees of part pensioners and self-funded retires respectively, together with lifetime indexed cap of $60,000.

• Care fee cannot be greater than cost of care.

• 80,000 new home-care packages by 2021/22.

• Annual government subsidy will range from $7500 to $45,000.

• $880.1 million over next five years to expand home care.

• On July 1, 2015, HACC Program, the National Respite for Carers Program, Day Therapy Centres and the Assistance with Care and Housing for the Aged Program will be consolidated under a new Home Support Program.

• Home Care Support Program to focus on prevention and re-enablement.

• $6.7 billion over five years for HACC Program for older people.

• $3 billion over five years for joint state-commonwealth Home and Community Care Program in Victoria and Western Australia.

• More than $5.8 billion over five years for home care packages supporting 58,000 packages a year.

• More than $1 billion over five years for the National Respite for Carers Program.

• Hardship Supplement for residential care to be extended to Home Care packages.

• $73.5 million to integrate Home and Community Care (HACC) program with other commonwealth programs to create and grow a new Home Support program.

• About 4900 new Home Care packages offered through 2012-13 Aged Care Approvals Round (ACAR).


Residential care:

• From July 1, 2014, residents can choose to pay accommodation costs through fully refundable lump sum or a rental style periodic payment, or a combination of the two.

• From July 1, 2014 means testing arrangements will be tightened by combining current income and asset tests. • New means-testing measures will mean people with same level of income and assets as other residents will pay the same fee.

• $486.9 million to increase the accommodation supplement government pays on behalf of residents who can't meet all or some of their accommodation costs.

• Government will remove distinction between low and high care.

• Providers won't be able to choose people based on how person intends to pay for accommodation.

• Residents will be able to decide how they will pay once in care.

• $65.4 million to enable residents to access additional services in aged-care homes.

• Consumer Direct Care to be trialled in aged-care centres in 2013/14, to give people greater say over delivery of care.

• Aged Care Funding Instrument to be refined, to ensure funding claimed by providers better matches level of care being offered.


Other measures:

• $192 million over five years to support people from diverse background accessing age care.

• $39.8 million for consumer support and research.

• $256.4 million through Aged Care Reform package.

• $26.4 million to establish new Aged Care Financing Authority.

• $16.6 million for greater transparency, including establishment of My Aged Care website.

Read the Benetas response to the Aged Care Reforms here