At a glance: aged care reforms
What are the key features of the government's aged care reforms?
A break-down of the key measures and funding behind the aged care reforms announced by the government.
A $3.7 billion package of measures over five years:
- $1.9 billion for better access to aged-care services.
- $1.2 billion to strengthen the aged-care workforce.
- $268.4 million for dementia.
- $54.8 million to support carers.
Home care:
- Home Care subsidy package to be means tested from July 1, 2014; 'care fee' to be introduced.
- Family home will be exempt from means testing.
- Means testing to reduce government funding of package from 84 per cent to 76 per cent.
- Recipients to pay basic fee of up to 17.5 per cent of the single basic pension.
- Full pensioners won't pay care fee.
- Indexed caps of $5000 and $10,000 will apply to care fees of part pensioners and self-funded retires respectively, together with lifetime indexed cap of $60,000.
- Care fee cannot be greater than cost of care.
- 80,000 new home-care packages by 2021/22.
- Annual government subsidy will range from $7500 to $45,000.
- $880.1 million over next five years to expand home care.
- On July 1, 2015, HACC Program, the National Respite for Carers Program, Day Therapy Centres and the Assistance with Care and Housing for the Aged Program will be consolidated under a new Home Support Program.
- Home Care Support Program to focus on prevention and re-enablement.
- $6.7 billion over five years for HACC Program for older people.
- $3 billion over five years for joint state-commonwealth Home and Community Care Program in Victoria and Western Australia.
- More than $5.8 billion over five years for home care packages supporting 58,000 packages a year.
- More than $1 billion over five years for the National Respite for Carers Program.
- Hardship Supplement for residential care to be extended to Home Care packages.
- $73.5 million to integrate Home and Community Care (HACC) program with other commonwealth programs to create and grow a new Home Support program.
- About 4900 new Home Care packages offered through 2012-13 Aged Care Approvals Round (ACAR).
Residential care:
- From July 1, 2014, residents can choose to pay accommodation costs through fully refundable lump sum or a rental style periodic payment, or a combination of the two.
- From July 1, 2014 means testing arrangements will be tightened by combining current income and asset tests.
- New means-testing measures will mean people with same level of income and assets as other residents will pay the same fee.
- $486.9 million to increase the accommodation supplement government pays on behalf of residents who can't meet all or some of their accommodation costs.
- Government will remove distinction between low and high care.
- Providers won't be able to choose people based on how person intends to pay for accommodation.
- Residents will be able to decide how they will pay once in care.
- $65.4 million to enable residents to access additional services in aged-care homes.
- Consumer Direct Care to be trialled in aged-care centres in 2013/14, to give people greater say over delivery of care.
- Aged Care Funding Instrument to be refined, to ensure funding claimed by providers better matches level of care being offered.
Other measures:
- $192 million over five years to support people from diverse background accessing age care.
- $39.8 million for consumer support and research.
- $256.4 million through Aged Care Reform package.
- $26.4 million to establish new Aged Care Financing Authority.
- $16.6 million for greater transparency, including establishment of My Aged Care website.