Policy & Reform

Aged Care Act 2024 and Support at Home program take effect

Consumer out-of-pocket costs remain a key concern for providers, peak bodies and community alike

The Albanese government's Aged Care Act 2024 and new Support at Home program have both commenced, marking the beginning of a new era for the Australian aged care sector.

November 1 introduced the most significant reform the country's aged care system has seen in 30 years, enshrining the rights of older people into law.

Minister for Aged Care and Seniors Sam Rae said that the Act is not a finish line, but rather, represents a foundation upon which a “modern, sustainable system” can be built for generations to come.

“With these reforms, we are no longer just patching a broken system - we are fulfilling a promise to deliver dignity, choice and respect to every person who has spent their life contributing to their community and our country,” he said.

The sweeping reform responds to 58 recommendations made by the Royal Commission into Aged Care Quality and Safety, which the minister said boiled down to one key issue, which has defined the industry for far too long: neglect.

“For decades, too many older Australians faced a system that treated them as passive recipients of care. Now we place them at the very heart of a rights-based system where their voice matters, where quality is non-negotiable and people can age with purpose and joy,” he said.

“We are grateful to every older person, aged care provider, family member and advocate who helped us build this new system, and to the many nurses, care workers, administrators and families who will make it a reality.”

The government will fully fund all clinical care for people in aged care homes, but older people will be required to make means-tested co-contributions for their non-clinical care and everyday living services.

Everyday services include meals, cleaning and laundry, while non-clinical care includes personal care and mobility assistance.

Contributions will be capped at $105.30 a day, or $135,318 over a lifetime, for non-clinical care.

Older people will be required to make means-tested co-contributions for their non-clinical care and everyday living services. Picture: iStock.

COTA Australia chief Patricia Sparrow called the Act a “defining moment”, one that she hopes will deliver meaningful change for older people.

“The new Aged Care Act provides a solid foundation to build the quality aged care system all Australians deserve,” Ms Sparrow said.

“No system is perfect from day one, and change of this scale takes time, but this Act gives us the tools to create a care system that truly supports older Australians.

“The government has a clear mandate to ensure the new system delivers care that is accessible, affordable, and equitable for every older Australian – regardless of background or postcode.”

COTA said it will be keeping a careful eye on the impact the Act has on the sector over the coming months and years.

“We remain deeply concerned that showering has been excluded from clinical care under the new Support at Home program. We’ve raised this directly with government and will continue to advocate strongly for this to be addressed,” Ms Sparrow said.

The new Support at Home program, which replaces Home Care Packages and the Short-Term Restorative Care program, has eight funding classifications, ranging from about $11,000 a year to $78,000 a year.

Recipients receive a budget aligned with their assessed funding classification.

Catholic Health Australia (CHA) have too warned the government that the organisation will be monitoring for “any unintended consequences of changes arising from the Act.”

“The Aged Care Act strengthens the rights of older Australians, gives them more of a say in the care they receive and increases the expectations of providers in delivering high quality aged care services,” CHA aged and community care director Alex Lynch said.

“We will closely monitor whether the new consumer co-contribution framework causes older people to go without needed services.

“For example, our members would quickly identify if people receiving care at home started declining personal care such as showering because it attracts a consumer contribution.”

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Email: rebecca.cox@news.com.au
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One Comment

  1. This article highlights a truly pivotal moment for the aged care sector in Australia — a shift toward quality, dignity, and person-centred care under the new Aged Care Act.

    At For Purpose Aged Care (fpagedcare.org.au), we’re excited to see these reforms taking shape and bringing older Australians’ rights, choices and wellbeing to the forefront. Our care homes are built around the same principles — respect, connection and tailored support — ensuring every resident enjoys comfort, purpose and joy every day.

    As the sector evolves, providers who value genuine relationships and high quality care — not just compliance — will make all the difference. Thank you for sharing this insightful update!

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