Huge changes to how much retirees must pay when they enter aged care won’t impact anyone already living in aged care but will slug some new entrants more from 2025.
Prime Minister Anthony Albanese announced the changes on Thursday, heralding the reforms as the biggest changes in decades, insisting the changes are “bipartisan.”
The family home will not be subject to any further changes with regard to access to aged care and there will not be a new levy.
More money will be devoted to helping those that want to remain in their own homes – with support – to do so.
The recent aged care reforms in Australia aim to support retirees to stay in their homes longer and won’t affect those already in aged care. Photo: Kari Bourne
But some self-funded retirees will be asked to pay more in the future.
“We are announcing the greatest improvement in aged care in 30 years,’’ Mr Albanese said.
“As a result of the reforms that we are announcing today, around 1.4 million Australians will benefit from a new support at home program by 2035, helping them remain independent in their home and the community for longer.”
“Nobody already in aged care will be asked to contribute more to the cost of their care.”
In a statement, the government said a ”no worse off principle will provide certainty to people already in aged care and they won’t make a greater contribution to their care.”
The Government said it will pay 100 per cent of clinical care services, with individual contributions going towards independence and everyday living costs.
The changes will mean increased contributions for some new entrants from 2025 but won’t involve new taxes or levies. Picture: NewsWire / Martin Ollman
The new increased contributions will be based on the Age Pension means test and will be highly dependent on their personal circumstances, from the level of support they are assessed to need, to their combination of income and assets.
A lifetime contribution cap will apply across the aged care system and means no one will contribute more than $130,000 to their non-clinical care costs – whatever their means or duration of care.
Treasurer Jim Chalmers said the changes would not involve new taxes or levies.
“It is not about new taxes and is not about changing the treatment of the family home,’’ he said.
“It is a good thing that Australians are living longer and healthier lives and this is how we meet the rising costs of their care.”
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