Individual needs at the heart of the New Aged Care Act
WITH the commencement of the Aged Care Act on November 1 last year, Australia’s aged care system has undergone its most significant transformation in decades.
At its core, the new aged care reforms prioritise the needs of the nation’s older people, transitioning the system from one based on provider funding to a rights-based model.
New changes
The new Act places dignity, independence and informed choices front and centre, including the following key reforms:
Funding that follows the individual
Funding is now allocated directly to the person rather than the provider. This means older Australians have greater control, with their funding moving with them to the home care or residential provider of their choice. It is now easier for individuals to change providers or residential homes if needs or preferences change.
Support at home replaces Home Care Packages
The Support at Home program has replaced the former Home Care Packages with support levels expanding from four to ten tiers, with maximum annual funding rising to around $78,000. The program also introduces dedicated funding for end-of-life care as well as an Assistive Technology Scheme providing upfront access to equipment such as walkers and home modifications.
Stronger rights and protections
An enforceable Statement of Rights now sits at the centre of aged care law, replacing the previous voluntary Charter. Older people are legally guaranteed safe, quality care, independence, dignity and the right to make decisions about their own lives.
Clients are also protected against reprisals for making complaints, with independent mechanisms in place to address concerns and ensure accountability.
Clearer contributions and lifetime cap
The government now covers 100 per cent of clinical care, including nursing services in residential aged care.
For non-clinical support, such as help with showering or cleaning, contributions are means-tested based on income and assets.
A lifetime cap of $130,000 applies to non-clinical care costs across the system. Once this cap is reached, no further contributions are required.
Supporting independence
Older Australians can now nominate Registered Supporters to help with decision-making and communication, ensuring their preferences are respected.
A new Single Assessment System provides independent, consistent assessments focused entirely on the individual’s needs, not on provider requirements.
Providers must also be transparent about services and fees, supporting residents to make informed choices about their care.
Higher standards in residential care
The reforms also strengthen expectations for aged care homes where a registered nurse must now be onsite 24/7 and an average of 215 minutes of care must be provided to a resident per day.
