Aged care reform: who will pay more?

Aged care has long been a wicked problem: how to ensure people in their final years are treated with dignity and respect, yet keep costs under control? And with more people living longer, often with complex health needs, how can we keep them at home while making sure they are properly cared for?

Self-funded retirees and many part pensioners will pay more for their aged care under the government’s reform package, endorsed by the opposition.

The changes involve a $930 million extra spend over four years, and $12.6 billion savings over 11 years.

The package, which the government says is the biggest reform in 30 years, will shift the system further towards home care, so people can stay at home as long as possible.

A “no worse off” principle will protect those presently receiving aged care from the higher imposts. The treatment of the family home won’t change.

There will be a $4.3 billion investment for Support at Home, starting on July 1 next year.