The introduction of new provisions under the Aged Care Act in Australia is causing significant concern among elderly citizens, particularly regarding affordability and access to essential care services. Starting from November 2024, the changes will impose co-payments for various non-clinical services, prompting fears that many older Australians will be forced to prioritize basic needs like food over necessary care.
Margaret Duckett, a 77-year-old pensioner living in Sydney, relies on a home care package that provides support for cleaning, transport, and personal care. While she will be “grandfathered” into the current system and will not see her costs change, Duckett worries for her friends who have yet to be assessed for home care packages. Under the new rules, these individuals will face steep co-payments for crucial services, including assistance with showering and dressing.
“Too many pensioners go without food to visit a doctor already,” Duckett stated, expressing her fear that the new changes will lead to even more difficult choices. She is not alone in her concerns. Senators David Pocock and Penny Allman-Payne are set to initiate a Senate inquiry into the Aged Care Act, voicing their apprehensions that the reforms may push vulnerable individuals into residential care or hospitals sooner than necessary.
At the core of the new system is a co-payment requirement, which mandates that individuals contribute financially for what are categorized as “independence support” services. This includes essential activities like showering, dressing, and other daily living tasks. The co-payment amounts will range from 5% for full pensioners to 50% for self-funded retirees. For additional support with everyday living tasks, such as gardening and cleaning, out-of-pocket costs will vary significantly, reaching up to 80% for self-funded seniors.
Advocates are particularly outraged that showering is classified as independence support rather than clinical care. Amina Schipp, an aged care advocate, emphasized, “Everybody deserves to have a shower a day or every second day. If they are wanting help with a shower, it means that they can’t do it for themselves.” Consequently, she warns that many may choose to forgo essential care, leading to health complications such as infections.
Allman-Payne pointed out that while the government has insisted that it will cover 100% of clinical care costs, the reality is that most elderly individuals require assistance with non-clinical tasks. She stated, “The bulk of the care that an old person needs is actually not clinical care.” Without adequate government support for these everyday needs, many seniors may find themselves unable to afford essential services.
The new Aged Care Act, which passed parliament in November 2024, aims to address recommendations from a royal commission into aged care quality and safety. Prime Minister Anthony Albanese described it as “the greatest improvement in aged care in 30 years,” intended to allow older Australians to maintain their independence while improving residential care standards. The government claims the new act will support an additional 300,000 individuals and has defended the co-payment system as a necessary measure to meet the growing demands of the aged care sector.
The Older Persons Action Network (OPAN) has acknowledged some positive changes in the new legislation, stating that while they do not endorse every aspect, the reforms provide quicker access to services and greater choice for older individuals. Independent Senator Pocock articulated a mixed view, suggesting that while a co-payment system could be beneficial if properly designed, significant questions remain about its practical implementation.
Despite government assurances, Duckett and others fear that the new policies will disproportionately affect those who are financially vulnerable. “The evidence is so very, very clear that co-payments differentially impact on the poor and disadvantaged,” she stated, highlighting that nearly 60% of Australians over 65 receive the age pension. With limited incomes, many elderly individuals may struggle to cover new costs, potentially jeopardizing their access to care.
The implications of the changes also extend to home modifications. Under the new act, funding for such adjustments is capped at $15,000 for a lifetime, an amount some advocates argue is insufficient for necessary renovations. Paul Absalom, 78, who has faced mobility challenges, noted that he spent $20,000 on renovations to make his home accessible. He expressed concern that under the new scheme, individuals needing similar modifications may be unable to secure the necessary financial support, further pushing them towards residential care.
“Fifteen thousand gets you bugger all, basically,” Absalom stated, emphasizing the limitations of the new funding caps. The new policy restricts the amount that can be saved for home modifications, which could hinder many older Australians from remaining in their homes.
As the rollout of the new Aged Care Act approaches, the voices of concerned citizens and advocates highlight the pressing need for a system that truly supports the elderly. With many facing difficult decisions about their care, the coming months will be critical in determining the impact of these significant changes on the lives of older Australians.
