The Australian government took an extraordinary step to improve aged care with a historic $3.15 billion investment in the sector. They promised to increase the immediate rollout of home care packages. Aged Care Minister Sam Rae called this initiative a “game-changing win” for older Australians. This couldn’t be more timely as our nation continues to face the challenges of an increasingly older adults’ demographic. We are adding another 20,000 packages to get them into the hands of everyone who needs them the most. At present more than 108,000 older Australians are waiting for home care they have been approved to receive. Another 120,000 are on a waiting list for assessment.
This expansion is a direct result of the recommendations made in the 2021 Aged Care Royal Commission. It calls for a fundamental rethink of the entire system, to address the needs of older Australians more effectively. The government had previously committed to 83,000 packages to prove that they were serious about reform. New demand soon proved the need for more drastic measures.
Immediate Funding and Future Growth
The government will immediately fund these new packages, reflecting a proactive approach to address the pressing needs of older Australians. Pointing to Canada’s ageing demographic, Minister Rae highlighted that the program’s expansion is an “absolute given.” He later explained that this program is not going to be one-in, one-out starting in the middle of next year. This modification brings more people to care they need without repercussions from historic package distributions made earlier.
For years now, the aged care system has been booming. Just consider the fact that people trying to get help have tripled – from 120,000 in 2020 to more than 300,000 now. This upward trajectory further highlights the importance of the federal government’s response and the need for continued investment in the industry.
“They make a really good start on clearing that waiting list.” – Tom Symondson
Transition to a New Support Structure
In a major departure, the new program will have eight tiers of assistance rather than the four tiers that exist today. This is a fundamental change that reflects the need to better meet the hugely diverse needs of older Australians. This provides a reasonable glide path for all formula recipients into the new structure. Rae committed to a no worse off guarantee for anyone currently on or approved for a package prior to September 12, 2024. This locks in the promise that their benefits can never be cut.
Even as the federal government prepares to roll out these positive changes, affordability worries are already becoming a reality. Tom Symondson added that older people have already said they are concerned about meeting co-contributions needed for these packages.
“We know that the number of people requiring home care is going to massively expand over the next 10 and 20 years.” – Tom Symondson
Addressing Long Waitlists and Future Concerns
This waiting list for aged care packages has recently become a hot button issue in Australia. Currently, 108,000 seniors have been cleared for home assistance. They’re still waiting to receive that help in real terms. On top of that, more than 120,000 people have not yet been evaluated but are waiting for care.
Ian Yates from the Aged Care peak body has called on the government to look at these figures with a healthy dose of scepticism. He noted the necessity of closing these waitlists as quickly as possible. Yates further stressed that the reforms should address pressing needs. Instead, he pushed that they get ready for increased future demand on the system.
“There will be significantly higher co-payments in the support at home program for people across the board, basically.” – Ian Yates
Now that the next phase of aged care packages is unfolding, it’s imperative that all stakeholders remain vigilant during implementation. Working to make sure these packages truly support older Australians to live their lives is critically important.
