Older owners could use equity to make home age-friendly

Older Australians looking to ­remain in their own homes for as long as possible could be supported by the government to make the necessary modifications.

A new options paper from the federal Department of Health floats a series of proposals to support people to remain living independently at home for as long as possible.

Older Australians looking to ­remain in their own homes for as long as possible could be supported by the government to make the necessary modifications and put off any repayment until after they die.

A new options paper from the federal Department of Health floats a series of proposals to support people to remain living independently at home for as long as possible, including ideas on how to use home equity for necessary refurbishments.

It also proposes ways that small-scale “assistive technologies” such as accessible cooking appliances and easy-to-use jar openers, medical care aids and mobility devices such as wheelchairs are provided by the government to older Australians, including the possibility of a loans system.

The discussion paper, “Assistive Technologies and Home Modifications Scheme for in-home aged care”, proposes that those looking for major home modifications such as bathroom refits or ramps would be assessed under a broader aged-care assessment.

It notes not all older people own their homes, and renters may have difficulty in obtaining the ­approval of a landlord even if they are assessed as needing home modifications. This issue would be addressed in the final design of a new in-home care system, the paper said.

As for funding the modifications, the paper recognised the “ethical dilemma of government-funded home modifications growing private wealth”, again noting the issue would be considered in future program design.

“Options include reverse mortgages, with funds made available through a loan against their home,” the paper proposes.

“The loan and any interest could be repaid once the asset is sold or passed onto the ­family, meaning regular repayments are not needed while the person remains living in their own home.”

The other funding solution might be an adaptation of the Home Equity Access Scheme, the paper says, which gives older Australians the opportunity to supplement their income by accessing home equity through a government loan.

National Seniors Australia chief advocate Ian Henschke said many older Australians were interested in the concept of using their home equity to improve their quality of life.

“Our surveys have consistently shown that older Australians ­overwhelmingly want to receive their care at home, and many say they are prepared to dip into their home equity to do it,” Mr Henschke said.

“Extending the scheme to cover home modifications would seem to be a sensible option,” he said.

Examining how best to deliver home modifications and assistive technology to support older ­Australians to stay longer in their own homes is part of a broader plan to remodel the in-home care system.

Aged Care Minister Anika Wells has flagged this as a priority for the Albanese government.

“The current in-home aged care system needs to be improved to better support older Australians,” Ms Wells said in announcing the new consultation.

“Wait times for care are too long, administration fees are too high, program arrangements are confusing, services are not always well targeted, and older Australians do not always get the help they need to support their independence.

“These issues have been exacerbated by workforce shortages and underpaid workers.”