Support for dignified aging – Vesti online

The federal government’s proposed Aged Care Act was passed this week. The new law will provide help at home, and will also contribute to improving conditions and protection for people living in care facilities for the elderly from July 2025.

Around 1.4 million older Australians will receive support for care, occupational therapy and daily tasks such as cleaning and showering to help them live independently in their own homes for longer and delay caregiving.

– The $5.6 billion package will be one of the biggest improvements to the sector in the last 30 years – said Minister for Aged Care Annika Wells.

Commonwealth main funder

To fully fund the rising costs of care, people who are not yet in nursing homes or receiving home care assistance will have to pay a share of the cost of non-clinical care, with the amount paid depending on their income and assets.

The highest someone would pay for this independence and daily living expenses would be $130,000 after the contribution cap was raised from $76,000.

Although the government will spend $930 million over four years, it will also save $12.6 billion over the next 11 years through this program.

It was also confirmed that the Commonwealth will remain the main financier of care for the elderly.

For every dollar a person contributes to elder care, the federal government will spend an average of $3.30 on housing and $7.80 on home care. The new laws will also set out the aged care rights of older Australians and implement new quality standards for aged care.

The changes come after a royal commission found abuse and substandard care was rife in the sector. Although the new laws implement many of the commission’s recommendations, they do not include criminal penalties for serious harm and neglect, which has raised concerns among the Greens.

Regardless, the changes were welcomed by the Association of Seniors and Community Care Providers, who hailed the bill’s passage as a “historic moment for the aging population.”

Elderly in fear

Otherwise, the majority of older Australians are not informed about the financial implications of moving into a care facility and have no knowledge of what types of government assistance are available to them. Also, four out of five retirees feel unprepared for the transition to elder care, according to a survey by the financial company AMP.

About 70 percent of them worry about the costs of care, and a third are worried about the costs that their children will have.

AMP group chief executive of pension funds and investments, Melinda Howes, said the findings aligned with common queries from financial advisers about the cost of the service and what to do with the family home and other assets.

Earlier research by the financial services firm found many retirees in Australia fear care costs will run out of their savings.

The number of pensioners is growing

Over the next four decades, the number of Australians over 65 is expected to double. Also, the number of people over the age of 85 will triple, which will significantly boost the demand for care for the elderly.