The new Aged Care Bill passed parliament on the 24 November and will come into effect on 1 July 2025. The changes will include the Support from Home Program which will replace the Home Care Package. Current recipients will transition to the new program under their current service levels, and won’t need a new assessment, unless their needs have changed.
There will be eight classifications for ongoing services, replacing the current four and each classification will have its own budget for participants to use. A new person’s classification will depend on their needs.
Classifications will include clinical care (nursing, physiotherapy), support for independence (personal care, transport, social services) and help with everyday living (cleaning, meals delivery, gardening).
The major changes relate to accommodation costs when entering aged care. This can be an emotional time when placing a loved one into care as there is often guilt and many other associated emotions. It can also be very overwhelming – does the home need to be sold? What fees are going to be charged? Can we afford it?
Currently, a facility can charge a maximum accommodation bond of $550,000. From 1 July 2025 this will increase to $750,000 and index by CPI each year with 100% of the bond refundable to the resident’s estate upon their passing. From 1 July 2025 the facility will be required to retain 2% of the bond per annum (capped for 5 years to a maximum of 10%.) The changes also affect daily care fees.
The proposed changes are designed to enable those who can afford to pay for their care to pay more than those who can’t. It will also enable providers to maintain and upgrade their facilities as required, attract quality candidates to work within the facilities and provide higher standards and quality service to patients.
If you would like to discuss the changes in more detail or have a family member or friend who might benefit from an initial discussion, please call me on 13 10 54 or email me at jacki@guardianwealthsolutions.com.au