SYDNEY — Aged care reforms set to roll out from July 1 are sparking deep concern among older Australians, with many fearing they may soon be forced to pay more out-of-pocket for essential home care services like showering, cleaning, and gardening.
The Federal Government’s new Support at Home Program, supported by both Labor and the Coalition, aims to improve service delivery, reduce wait times, and increase funding for those with higher needs. However, the introduction of means-tested co-payments — even for full pensioners — has led to anxiety and frustration within the aged care community.
Christina Tsobanis, who cares for her mother living with Alzheimer's on a Level 4 package, expressed fears that new recipients could see significant financial strain. “They're already at their financial limits. Now they have to justify their existence just to get help?” she said.
Under the reforms, in-home care services will be categorized into:
Clinical Care (e.g., nursing, therapy) – fully covered by the government
Independence Support (e.g., showering, medication help) – partial co-payment
Everyday Living Support (e.g., cleaning, meals, gardening) – significant co-payment based on income
A government-set fee schedule will prevent providers from overcharging, and financial hardship provisions are in place, though critics argue these are difficult to access and "degrading."
How much could older Australians pay?
Full pensioners: 5% for independence support and 17.5% for everyday living
Part pensioners: Up to 50%
Self-funded retirees: Up to 80%
Advocates like Craig Gear from the Older Persons Advocacy Network (OPAN) say the program has merits — especially with improved access to allied health and a new $25,000 palliative care payment — but they strongly oppose classifying showers as a luxury.
Aged care advisor Jim Moraitis says many older Australians already struggle to navigate the complex system. “Even modest co-payments of $10–$30 a week could impact those living solely on a pension,” he warned.
Critics also worry the reforms will push some retirees to forego support altogether, risking health complications and greater burdens on hospitals and residential care facilities.
The government promises existing care recipients will be “no worse off,” and says help will be available to those who cannot afford the new fees. However, uncertainty around pricing, provider fees, and hardship eligibility continues to leave many families anxious and searching for answers.
A government fact sheet is available with further information, but aged care specialists advise families to seek professional financial guidance as the July deadline approaches.
