What You Need to Know About the Aged Care Act 2024
Navigating the future of Aged Care in Australia is often delayed until unavoidable. We urge families for whom this could be relevant within a couple of years to start considering it now. The Australian Government has introduced the Aged Care Act 2024, a transformative update to improve aged care services. This new Act, effective 1 July 2025, replaces the 1997 legislation and is claimed to reflect a stronger commitment to quality care, individual rights, and system transparency.
Key Improvements for Older Australians
The new Act focuses on enhancing care delivery in homes, communities, and residential facilities. It aims to ensure older Australians receive the respect, support, and quality services they deserve. The changes include:
- Clearer rights for those seeking or accessing aged care services.
- A single-entry point with straightforward eligibility criteria.
- A fair, culturally safe assessment process tailored to individual needs.
- Strengthened accountability for aged care providers through a robust regulatory framework.
- A renewed focus on oversight to maintain high standards of care.
Empowering Older Australians
The Act empowers older Australians to live active, self-determined lives. Whether it’s through streamlined complaints systems or compensation pathways, older individuals can trust the system to prioritize their well-being. Their rights under the legislation and information about them is going to be transparently available.
Key highlights include:
- Registration of supporters to aid decision-making.
- New eligibility criteria for aged care assessments, ensuring resources reach those most in need.
- Specific provisions for First Nations people and those at risk of homelessness.
Preparing for Major Changes in Aged Care
From 1 July 2025, the Support at Home program will launch, unifying various care services under one umbrella. Clients currently on home care packages or in the National Priority System by 12 September 2024 will continue under existing rules. For those entering aged care after mid-2025, new fee structures and service models will apply.
What This Means for You
1. Residential Care Updates
- A revised fee system, dividing costs into everyday living, clinical care, and non-clinical care.
- Clinical care will remain fully government-funded.
- Means-tested contributions for non-clinical care will include a lifetime cap to provide financial certainty.
- Accommodation caps will increase, and room subsidies for low-means residents will improve accessibility.
Home Care Changes
- Services will be delivered as –
- clinical care,
- independence support, and
- everyday living costs.
- Full pensioners and part-pensioners will benefit from affordable contribution structures.
- Self-funded retirees will contribute more, ensuring fairness across income levels.
- Unspent funds will have limits to encourage effective use of resources.
Why Act Now?
The upcoming changes present opportunities to make informed decisions today. For those considering aged care, now is an excellent time to explore options and plan ahead. By understanding the new rules, families can secure the best outcomes for their loved ones.
We’re Here to Help
Navigating aged care reforms can feel complex, but you don’t have to face it alone. As experienced financial planners, we’re ready to guide you through the process and help you create a plan that meets your family’s needs.
Make an Appointment with us now –
To ensure you are fully prepared for these changes, reach out to our team today to discuss your options. To arrange a meeting with one of our experienced Aged Care advisers, either –
- Phone our office during office hours (on 07-3421 3456), or
- At your convenience, use our linked Book A Meeting facility.
(This article was originally published in December 2024.)
