Two new Senate inquiries will scrutinise the Albanese Government’s aged care reforms, as the Australian Greens warn that the new Aged Care Act, which came into effect this week, will leave many older Australians worse off and struggling to afford basic care at home.
The inquiries were secured by the Greens after widespread concern about growing waitlists, new co-payment requirements under the Support at Home program, and uncertainty surrounding the future of the Community Home Support Program (CHSP), which currently assists more than 800,000 older Australians.
Greens spokesperson for Older People, Senator Penny Allman-Payne, will chair both inquiries. She argues that the government’s reforms are increasing out of pocket costs while delivering rising profits to private providers.
“Older people across the country, hundreds of thousands of whom are on fixed incomes, are copping increased costs for their care at home so that privatised aged care providers can make bigger profits. That is a broken system,” Senator Allman-Payne said.
Under the new Support at Home program, older Australians can now be charged significant co-payments for everyday support, including help with showers, household tasks and meal preparation. Based on Department of Health data, some people could pay up to $50 per hour for basic assistance.
“Labor’s Minister for Aged Care, Sam Rae, has tried to hide the truth of these aged care changes, but now the reality is setting in and older Australians are waking up to new care arrangements they cannot afford,” Senator Allman-Payne said.
The Greens say that while existing home care recipients were promised they would not be worse off, many are already reporting increased fees and reduced service hours. StewartBrown, an aged care financial advisory firm, has advised providers to increase charges by 30 to 38 per cent, in the absence of caps on fees until July 2026.
“From today, a tsunami of co-payments will break on older Australians,” Senator Allman-Payne said. “Our parents and grandparents deserve to be looked after in their old age, not forced to choose between a shower each day and a meal.”
The new Act also raises costs for people entering residential aged care. Half of all older Australians will now pay more to enter care, including three in ten full pensioners and most part pensioners. The government has raised the cap on Refundable Accommodation Deposits from $550,000 to $750,000, with providers permitted to keep up to 10 per cent of that deposit. Advocacy groups have warned the changes will disproportionately impact renters and people without assets who risk being priced out of residential care.
“Aged care should not be for profit,” Senator Allman-Payne said. “While one in three big corporations pay no tax, older Australians cannot get basic help they need. Something is seriously wrong.”
New data shows the national waitlist continues to rise. As at September, 238,248 older Australians were waiting for either an assessment or care package, up from about 217,000 just three months earlier. Only 63,000 additional packages will be released between now and the end of the financial year, leaving many without support.
The Greens argue this shortage is deliberate, pointing to the continued rationing of home care packages despite recommendations from the Royal Commission to fund care based on need.
“Older Australians are still dying waiting a year or more for care, and rather than boost needed supports like the Community Home Support Program, they are planning to close them,” Senator Allman-Payne said.
The first inquiry will examine the planned transition of the Community Home Support Program into Support at Home after July 2027. It will consider the impact on wait times, home modification caps, end of life pathways and the survival of small providers in thin markets. It will also consider workforce readiness during the transition.
The second inquiry will focus on the affordability and accessibility of Support at Home, examining co-payment impacts, hardship protections, the effect on hospitals and residential aged care, and access challenges for First Nations, culturally diverse and remote communities.
“The Greens will ensure older Australians and their advocates are heard, and fight to fix this system so that everyone can access the care they need at the time that they need it,” Senator Allman-Payne said.
Not a peep from Shadow Minister Anne Ruston on all the issues with the new aged care system. Is anyone trying to seek her views? Maybe I’ve missed it on the airwaves, but I’ve searched and found nothing. She has no opinion? She agrees with it?
Good for the Greens. Somebody has to do something about this appalling situation — and sooner, rather than later. The only ones benefitting here would seem to be the providers. One question that I would ask, though is whether there is a two-hour minimum for assistance. I am not totally up on current trends or regulations, but does this supposed minimum apply to each service that a client has, or does it just mean that a carer must have at least two hours’ work each day (or morning, or night, for example). If it is 2 hours per service, this could trap clients into paying even higher costs. Maybe there is no such rule, but some information and advice would be appreciated. Thanks.
Sophie
The worker is meant to be paid in 2 hour blocks, this can be across multiple clients.
This was introduced a while back and some providers tried to claim it was 2 hours per client, this was incorrect and as a community nurse we called them out and asked where it was in the manual, they soon changed their minds.
It was brought in to stop providers giving carers 30 minute jobs and then maybe a hour break, then another 30 minute job, so by the ens of the day the carer was only being paid for 3-4 hours work but had been away from hom for maybe 8 or 9 hours.
Thank you very much for this information, Barry. Knowledge is power.
Managed package costs have decreased by about 50% with General service costs rising by 50%.
Equipment in many cases will be rented with commonsense telling you that both the person receiving care will have their packaged reduced, in some cases significantly. It will also cost the Government more money in the long run with rental costs rising significantly to compensate for loss on the outright sale.