Aged Care Reforms – REVIEW NOW What All Families Need to understand!
The government has tabled an “Aged Care Bill” in Parliament – the biggest reform to the industry in 30 years. There are significant impacts for Centrelink pensioners, as well as fully funded retirees. Fees are increasing significantly!
The reforms will impact the elderly entering Aged Care or accessing a Government Residential Home Care package from 1st July 2025. Over the next 6 months you will hear a significant amount of information on this. The Bill is not law yet; however, it has the support of both parties and is predicted to be approved.
The simple reason for these new changes is there are currently not enough aged care beds or home care packages to meet requirements of our ageing population. At present there are wait times of between 6 – 12 months to obtain a pre-approval for a government assisted home care package and for Aged Care beds in certain locations.
Of the $5.6 billion reform package, approximately $4.3 billion will go to At-Home Care. The key areas will focus to a person-centred approach rather than cost basis. Home Care packages will be renamed as “Support at Home” and there will be one single assessment system. There will be 10 levels that will be applied for home care. Home care packages will increase by up to $25,000 per annum.
The government is hoping for a more tailored individual package whereby the services are more specific.
New rules will apply from the 1st July 2025 for Aged Care Applications, however those already living in aged care or moving before the 1st July 2025 will be grandfathered under existing rules and the increase in costs and changes will not apply.
Under the proposed Bill, Aged Care Facilities may increase their Refundable Accommodation Deposit (RAD) from 1st January 2025 from $550,000 to $750,000, without seeking government approval. This is a $200,000 increase.
At present the RAD is fully refundable on exit of the facility however the proposed change from 1st July 2025 will enable the Aged Care provider to retain up to 2% of the RAD each year or 10% over 5 years. The DAP (Daily Accommodation Payment) will also be increasing for every person living in aged care from this date.
We recommend all clients review and chat to family members who may be considering a Home Care Package or entering an Aged Care Home within the next 3 months and contact our specialist team urgently to avoid missing this deadline.