Aged care in Australia
In Australia, many aged care services are subsidised by the Department of Health to help keep costs manageable and affordable.
Australia's population is getting older, due to longer life expectancy and low fertility rates.
By 2060, aged care demands are expected to put additional pressure on Australian governments equivalent to about 6 per cent of national GDP.
[4] Since 2012, the government has been introducing reforms that move towards consumer-directed aged care - a more market-driven environment where the consumer (or their carer) can choose their service provider.
The Australian Broadcasting Corporation produced two-part documentary focusing on alleged neglect and abuse of older people.
[9] 83% of people over 60 surveyed in the Housing Decisions of Older Australians research paper by the Australian Government's Productivity Commission in 2015, preferred to continue living in their own home (compared to 6% who preferred living in a retirement villages and 1% in a residential aged care facility.
[citation needed] The funding a person receive varies depending on the level of their Home Care Package and is paid direct to the service provider.
If personal circumstances allow, the Government expects people receiving funding to contribute to the cost of their care.
[17] The Commonwealth Home Support Programme lets the older person choose the services they need as required.
[18] The subsidy programme does not necessarily fund the full cost of the service, so each person may pay a small contribution.
If a person is not eligible for a subsidy from the Australian Government, they can still access aged care services privately but will be required to cover the associated costs.
[27] After 27 February 2017, aged care providers are able to charge customers an exit fee to cover administrative costs which will be deducted from any unspent funds.
[29][30][31] Providers are legally required to publish their maximum exit fees on the My Aged Care website.
These residential communities offer a variety of services for older people to help them live independently, and are regulated by state and territory governments.
Tune wrote the "Legislated review of aged care" report for the Department of Health, published in September 2017.
This report said "There is a broad consensus shared by government and sector stakeholders that aged care requires further reform to become a more consumer-centred system.
The report addressed funding issues which were arising as the "Baby Boomer" generation reaches the age of 80 The government would no longer be able to sustain its (2017) level of funding, which was around three-quarters of all aged care costs, and "there is a strong case to increase the proportion of the costs that are met by consumers".
[51] The Aged Care Bill 2024 was introduced in the Australian Parliament in September 2024, and passed both houses on 25 November 2024.
