NSA welcomes important aged care changes
Advocates support moves to rectify deficiencies in the new aged care system. But there is still more to do to improve aged care.
National Seniors Australia (NSA) has welcomed the Federal Government’s announcement of a $3 billion investment in aged care, saying the changes reflect concerted advocacy for fairer, more affordable home care and a stronger aged care system.
The measures which will be a key part of the 2026 Budget, include more aged care beds, more home care places, and a reform to the new Support at Home program to re-categorise personal care services so they do not attract co-contributions – changes that NSA has consistently called for.
How is this being paid for?
As reported last week in Connect, the cost of these reforms is being paid from cuts to the Private Health Insurance rebate for seniors.
Higher rebates for seniors, which were introduced to increase the number of people using private health, will be cut to the rebate offered to people under 65. This could increase the cost of an annual policy by hundreds of dollars a year.
Higher premiums for seniors could result in significant numbers of older people dropping or downgrading their policy, with pensioners and part-pensioners most likely affected.
We encourage you to click on the link below to find out more, where you can also complete our reader poll and join our Health Costs campaign.
Supporting older Australians at home
Of particular significance is the Government’s $1 billion commitment to remove user charges for personal care services under the new Support at Home program. This means essential services such as showering, dressing, and continence care will be treated like other clinical supports and provided at no cost to the user.
NSA has long argued that these services are not “extras”, but basic and essential supports that allow older Australians to remain safe and dignified in their own homes.
For many of our members, out‑of‑pocket costs pose a barrier to accessing care.
Making personal care services fully subsidised is a practical step toward a fairer and more accessible Support at Home program.
More places, less waiting
The Government has also committed to accelerating the release of additional Support at Home places, helping to reduce long waiting times that have left too many older Australians without the help they need.
NSA has repeatedly highlighted the human impact of long delays for home care – carers burning out, avoidable hospitalisations, and older Australians being forced into residential care earlier than they want or need.
Our Federal Budget Submission called for more Support at Home packages to be released with the aspirational goal of reducing the wait time to three months by 1 January 2027.
While the details of this are unclear, we hope this heads the system in the right direction.
Strengthening residential care
Alongside home care reform, the Budget responds to the Independent Review of Residential Aged Care Accommodation Pricing, with funding to deliver an additional 5,000 residential aged care beds per year.
This includes:
New targeted capital subsidies for newly built or refurbished homes
Increased accommodation supplements, with extra support for facilities caring for a high proportion of supported residents
More specialist dementia care units and expanded dementia support programs.
NSA supports a balanced aged care system that gives older Australians genuine choice – whether that’s ageing at home or accessing high‑quality residential care when needed.
Increasing the number of residential care places available and supporting people with conditions such as dementia, is critical to reducing the number of people stranded in hospitals.
While we don’t expect this to happen overnight, the quicker that providers are encouraged to ramp up capacity, the quicker this issue will be resolved.
What is critical is that federal and state health and aged care authorities work together to ensure the location and type of services being built respond to the needs of the community, including the lack of aged care in regional areas.
These announcements are welcome, but we will continue to scrutinise the Budget when full details are released to ensure reforms are delivered in a way that truly benefits older Australians.
More to do
NSA acknowledged in its submission to the Federal Government back in October 2024 that we won’t get the new aged care system right first time and that ongoing review and refinement of the Aged Care Act and the rules that sit under the Act needed to occur.
It is not a sign of weakness to make changes even though the Act is in its infancy. It is good policy to head off future harm.
The announcements show what can be achieved and the value of supporting organisations such as NSA as a voice of seniors.
NSA continues to push for the following as part of the ongoing reform of aged care:
Fair pricing and affordability in home care, including pricing controls to protect consumers that ensure not a cent more is spent than required.
An end to excessive waiting times and the rationing of access to ensure those who need care get access to care.
Strengthened assessment integrity that ensures older people are getting the right services and are treated with compassion.
An end to stranded patients in hospitals by building proper discharge pathways and services where they are needed and to meet their specific needs.
Improved provider transparency and comparability to give older Australians the basic information they need to make informed choices.
The retention (and reform) of the Commonwealth Home Support Programme (CHSP) as a stand-alone entry-level service for older people in need of support.
These changes will only happen when policymakers hear directly from older Australians.
Add your voice to National Seniors Australia’s aged care campaign and help us keep the pressure up for better home care, shorter waiting lists, and dignity in ageing.
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