Aged Care Act signals relief for sector

16 September 2024

16 Sep 2024

VMCH has welcomed the long-awaited introduction of the new Aged Care Act into Parliament.

Touted as ‘once in a generation reforms’ by the Australian Government, the $5.6 billion aged care package addresses recommendations of the Royal Commission into Aged Care and will help ensure the sustainability of the sector into the future.

The reforms, introduced 12 September, include a $4.3 billion investment in the new Support at Home program, to come into effect on 1 July 2025. Residential aged care will also get the support it so desperately needs, in large part thanks to the introduction of personal contributions to care.

VMCH Acting CEO David Williamson says the for-purpose organisation has long echoed its peak body Catholic Health Australia’s calls that those who can afford it, should contribute towards the cost of accommodation and daily living expenses.

We are thrilled that we will now hopefully be fully equipped to meet the tsunami of need coming our way. The fact that this reform has gained bipartisan support from the Coalition reflects the dire need for change – it cannot come soon enough.”

A younger woman helps an older woman in the kitchen — The new Aged Care Act will support more people to age at home

Highlights for residential aged care:

Larger means-tested contributions from new residents

For every $1 an older person contributes to their residential aged care, the government will contribute an average of $3.30

A no worse off principle means people already living in aged care won’t make a greater contribution to their care

A higher maximum room price, indexed over time

The treatment of the family home won’t change.

Highlights for ageing at home:

Shorter average wait times from assessment to receiving support

Support for home modifications, with up to $15,000 to make homes safer

Fast access to assistive technology, like walkers and wheelchairs

A 12-week program to help people get back on their feet after illness or injury

Support for the last three months of life to help individuals who would like to die at home do so, surrounded by their loved ones.

A man in a suit smiles at the camera — VMCH Acting CEO David Williamson

Mr Williamson also welcomed the overarching theme of the Act – putting the rights and needs of older people first.

Being responsive, innovative and consistent as a provider requires a huge financial investment and ongoing commitment. It is a big relief that these reforms will allow us to get to work and make positive changes to better serve our ageing community.”

The Bill will now be referred to the Senate for inquiry and feedback. The new Aged Care Act is expected to commence from 1 July 2025.

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Acknowledgement of Country

We here at VMCH respectfully acknowledge the traditional owners of the lands on which we gather, and we would like to take a moment to honour the fact that we live on the lands of the oldest civilisation in the world. We acknowledge the stories, traditions and wisdom of Aboriginal and Torres Straight Islander peoples, and pay our respects to their elders past, present and emerging.