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  1. News and updates

Big changes to the aged care sector

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Published date: 16 September 2024

This month was a milestone for aged care reform in Australia. On 12 September, the Australian Government: 

  • introduced the Aged Care Bill 2024 to Parliament
  • announced reforms to funding in its response to the Aged Care Taskforce
  • provided details of the Support at Home program.

So, what do these changes mean for older Australians? 

This article provides an overview of these three updates and links to further information if you’d like to learn more.

The Aged Care Bill 2024

The Aged Care Bill 2024 is for a new Aged Care Act – the main law that sets out how the aged care system operates. This new law will: 

  • improve the lives of older people accessing aged care services in their homes, community settings and residential aged care homes
  • encourage aged care providers to deliver high-quality care.

The new Aged Care Act is expected to begin from 1 July 2025 with the Support at Home program.

To learn more, read:

  • about the new Aged Care Act
  • the plain language or Easy Read version of the Aged Care Bill overview fact sheets
  • Read the Minister for Aged Care’s media release. 

Response to the Aged Care Taskforce

In March 2024, the government published the final report of the Aged Care Taskforce, with 23 recommendations for a fair and equitable aged care system in Australia. Last week, the government responded to those recommendations.

To learn more, you can read:

  • the government’s response to the recommendations 
  • case studies on residential care and Support at Home


You can also learn more about how the recommendations will impact:

  • accommodation payments
  • residential care contributions

Transitional arrangements with a no worse off principle will apply for older people who are already in residential aged care on 30 June 2025. Support at Home transitional arrangements will also apply as outlined below.

The Support at Home program

From 1 July 2025, Support at Home will replace the existing Home Care Packages Program and Short-Term Restorative Care (STRC) Programme. The aim of this reform is to help older people live independently at home for longer.

Around 1.4 million people in Australia will benefit from the new Support at Home program by 2035. 

It will provide: 

  • more tailored support for older people, with 8 ongoing levels of funding of around $78,000 per year
  • support for home modifications
  • fast access to assistive technology, including a new equipment loan scheme.

If you:

  • receive a Home Care Package
  • are on the National Priority System, or
  • approved for a package on 30 June 2025

you will receive a Support at Home budget that aligns to your current package level (or approved level when available). Home care recipients will also keep any Home Care Package unspent funds under the new Support at Home program.

Transitional arrangements in relation to participant contributions will apply for home care recipients, older people who were on the National Priority System and those who had been approved for a package at 12 September 2024. A no worse off principle will apply, with contributions set to ensure these people do not pay higher contributions than they pay in the Home Care Packages Program.

If you receive services through Commonwealth Home Support Programme (CHSP) there will be no immediate impact. CHSP won’t transition to Support at Home until after 1 July 2027.

To learn more about the Support at Home program:

  • read the Support at Home fact sheet
  • watch the Support at Home program update webinar recording (19 September)
  • read about the features of the new Support at Home program

 

Last updated date: 21 November 2024

News and updates

For alerts on issues like COVID-19, information on new features coming to this website, important updates from the Australian Government about aged care, and more, visit our News and updates page.

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