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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.

Original URL: https://www.theaustralian.com.au/national-affairs/at-a-glance-aged-care-reforms/news-story/d550c9efd0bd085ce6ea36ae913b840d