Albanese Reveals $9.9 Billion Plan to Revamp Aged Care with Backing from Coalition
Treasurer Jim Chalmers stated that the reform would enhance the budget’s sustainability.
Prime Minister Anthony Albanese revealed a significant $9.9 billion investment in aged care, with $5.6 billion allocated for sector reforms and $4.3 billion for home support starting on July 1, 2025.
Albanese emphasized the importance of delivering historic aged care reforms to ensure the viability and quality of the aged care system. He highlighted the need-based approach for the generation that cared for us and expressed gratitude to the Coalition for their bipartisan support.
The launch of the new home care initiative, Support at Home, in July 2025 aims to assist Australians in maintaining independence at home before transitioning to aged care if necessary. The program will offer clinical care, such as nursing, and help with daily tasks like cleaning. A lifetime contribution cap of $130,000 will be in place for non-clinical care costs, and the aged care agreement will safeguard individuals already in aged care facilities.
Albanese noted that the new bill will reintroduce nurses into nursing homes.
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“The reforms will result in approximately 3.9 million additional minutes of care for residents every day. A new Support at Home program by 2035 will benefit around 1.4 million Australians,” he said.
Aged Care Minister Anita Wales addressed Parliament, stating that Support at Home would significantly enhance in-home aged care services.
Wales mentioned that the program would reduce wait times, increase ongoing care levels from four to eight, expedite access to assistive technology like walkers and wheelchairs, increase the maximum support available from $61,000 to $78,000, offer temporary boosts through enhanced transitional assistance, and provide temporary access to palliative care.
Treasurer Jim Chalmers commended the reform as a major care improvement and a budget structural reform, noting that aged care spending would continue to grow at a more sustainable rate.
He highlighted the budgetary impact of the changes, emphasizing a $930 million spend over four years and a $12.6 billion save over the next 10 years, with aged care spending growing at an average of 5.2 percent.
Albanese expressed gratitude to both the opposition and his ministers for their support, underlining the significance of these once-in-a-generation reforms. He stressed the importance of providing dignity and respect to older Australians in retirement.
