On 25 November 2024, the new Aged Care Bill passed Parliament and will establish a new Aged Care Act.
About the new Aged Care Act
The Australian Government is bringing in a new Aged Care Act that will make significant changes to aged care in Australia. The new Act is rights-based, meaning that it puts the rights of older people first.
The Act gives older people more control, with care designed around their personal needs and goals. This means greater empowerment for them to make choices and have their preferences respected.
What are some of the changes in the Act?
Some of the key changes in the Act include:
- Investing $4.3 billion into the new Support at Home program that will come into effect on 1 July 2025.
- Improving the funding and quality of residential aged care.
- Creating new laws to protect older people in aged care, with stronger powers to investigate bad behaviour and penalties for people found not to meet the standards.
When does the Act come into effect?
The new Act is expected to take effect on 1 July 2025. This timing aligns with the new Support at Home program and will give everyone time to prepare for the major changes ahead.
If you are currently receiving support through programs like the Commonwealth Home Support Programme (CHSP) or Home Care Packages (HCP), transition plans will be in place to ensure your care continues without interruption.
The Government will provide guidelines and support to help both clients and providers manage this transition smoothly.
Who will be affected by the new Act?
The new Act will impact everyone connected to the aged care system. This includes older people, their families, and carers, as well as aged care providers, workers, and the broader care sector.
It also affects the government agencies responsible for supporting, delivering, regulating, and overseeing the system, such as the Department of Health and Aged Care, the Aged Care Quality and Safety Commission, and Services Australia.
What does the Act mean for those already in care?
If you are already part of the current aged care system, the Government has agreed to Home Care grandfathering. This means if you have a Home Care Package on 30 June 2025, you will keep the same funding and any unspent funds under the new Support at Home program.
If you are already on the National Priority System by 30 June 2025, you will get a Support at Home budget equal to your approved package level when available.
If you need to be assessed again in the future and are entitled to more funding, you will move to the new Support at Home program.
What does the new Act mean for the Home Care Package Scheme?
The new Act is expected to streamline home care services by combining the various current programs—such as CHSP, HCP and Short-Term Restorative Care—into a single Support at Home program.
This will simplify access to services for older people, reducing the difficulty of navigating different programs.
What is the Support at Home program?
The Support at Home program (which will replace Home Care Packages) aims to allow older people to remain living at home for longer.
The Government has pledged that older people will have to wait no longer than 3 months to receive services by July 2027 and has a target of supporting 300,000 more participants within a decade.
The new framework emphasises person-centred care, meaning that individuals receiving support at home will have more personalised care plans tailored to their individual needs, preferences, and goals.
Providers will also need to demonstrate how they are delivering care that respects individual autonomy and choice.
What are the benefits of the Support at Home program?
Based on the information we currently have, some of the benefits being promised of Support at Home include:
- Shorter average wait times from assessment to receive support.
- Support for home modifications, with up to $15,000 to make homes safer.
- Fast access to assistive technology, like walkers and wheelchairs, including a new equipment loan scheme.
- Support at Home participants will also have expanded access to restorative support to get back on their feet after an illness or injury through a 12-week program that works with a team of allied health and other professionals.
- Support at Home participants will be eligible for up to $25,000 in additional support to spend their final three months at home.
Changes to co-contributions
The new funding model in the Aged Care Act guarantees the Government will fully fund clinical care services (for example, nursing care) but require an increase in consumer contributions for non-clinical services (for example, personal care, gardening and accommodation) in both home and residential care settings.
A new higher-level home care package for up to $78,000 of support in a year will also be introduced, helping older people age at home.
It’s important to note that a no worse-off principle applies to people already in the aged care system. This means people who already have packages will continue to make the same contributions as they would have under their Home Care arrangements, unless they choose to move to the new program.
What does the new Aged Care Act mean for digital platforms like Mable?
Under the new Aged Care Act, digital platforms will now be regulated entities with specific obligations they need to meet.
These obligations include ensuring support workers are verified, meet specific training and qualification standards, and have thorough incidents and complaints handling processes in place.
What will remain the same is that older people can still use Mable to access independent support workers, and they will still need an Aged Care Provider (registered provider), who is responsible for their package funds and clinical outcomes.
The Government’s carefully thought-out obligations avoid duplication of responsibilities between the registered provider and the digital platform.
What comes next?
There will be a continued consultation period to ensure the sector is ready for the new changes from 1 July 2025.
To read more about the ongoing consultations, you can visit the Department of Health and Aged Care website.
For more information on the new Aged Care Act, you can read the new Aged Care Act factsheet, available in both plain English and Easy Read.
You can also read a summary of the key changes for older people, aged care providers and aged care workers on the Department of Health and Aged Care website.
This article is general in nature and details Mable’s thoughts and opinions. It is not intended to be advice and should not be relied on. Third party links are for reference only and Mable is not responsible for any use of these links or the related content.
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