Tracey Roberts (Pearce, Australian Labor Party) Share this | Hansard source

I rise today to address a matter of profound importance to the lives of millions of Australians both now and into the future. The care and dignity of older Australians is what we are focusing on. As we grow as a society, we must ensure that those who've helped to build our nation are treated with the respect, care and compassion they deserve as they enter their senior years. We are all aware that Australia is ageing; over the next 40 years the number of Australians aged over 65 will more than double. Those over 85 will more than triple. These are staggering numbers and reflect a demographic shift that requires urgent and thoughtful action.

The reality is that older Australians have specific needs and the systems in place to support them must be ready to rise to the occasion. The Albanese Labor government is committed to delivering the most significant reform to aged care in over 30 years, a reform that ensures older Australians can live with dignity and independence whether at home or in residential care.

We understand that aged care is not just a matter of infrastructure or financial management. It is about people; it is about families; it is about providing care to those who spent their lives building this nation and making it the prosperous, vibrant country that we all love. That is why today I am proud to highlight an historic $5.6 billion reform package for aged care. This package represents the largest improvement to aged-care services in decades and reflects a growing demand for better, more personalised care for older Australians. This is not just reform, it's a transformation.

At the heart of these reforms is a simple but powerful goal: giving older Australians more control, more independence and more support to stay in their homes in their communities for longer. And I think that is something we can all agree upon, giving people the dignity of choice. We know that more and more Australians want to remain in their homes as they age. Without a doubt, the statistics tell a clear story. In the past 10 years, the number of Australians using in-home care has increased fourfold. If you ask older Australians directly, as we have done through consultations, they tell us the same thing. Overwhelmingly they want to age in place. They want to live in their homes and communities they have known for decades surrounded by the people they love. To meet this growing demand, the Albanese Labor government is launching the Support at Home program, a revolutionary new system of home care designed to cater to the needs of older Australians. By 2035, we anticipate that 1.4 million Australians will benefit from this program, enabling them to remain in their homes and maintain their independence for as long as possible.

Support at Home is a program that will begin 1 July 2025. It will provide support that ranges from clinical care, such as nursing or occupational therapy, through to assisting with daily-living tasks like showering, dressing and taking medications. It also includes help with everyday activities like cleaning, gardening, shopping or preparing meals. This will allow people to stay in their homes for longer without putting pressure on them to move into residential care unless it is absolutely necessary.

One of the stand out aspects of Support at Home is that it is flexible and personalised. Older Australians will be able to access tailored support depending on their individual needs. Whether they need a little bit of help each week or more comprehensive care, the program will adjust to meet their unique circumstances. This isn't a one-size-fits-all approach. It's about empowering people to make choices that work for them.

Critically the government will cover 100 per cent of clinical care costs under the program. For other support services, such as help with showering, meal prep or cleaning, people will contribute based on their income and assets, much like the current system, but we have worked hard to ensure that these contributions are fair and means tested so that no-one is unfairly burdened by costs they can't afford. A key innovation in this system is the lifetime contribution cap. No individual will ever contribute more than $130,000 to their non-clinical care costs over their lifetime, no matter their wealth or how long they need care. This provides financial certainty for families and ensures that no-one is left struggling to pay for the care that they need.

And the benefits don't stop there. Support at Home will also provide for home modifications. That's $15,000 available to make homes safer. Whether that means installing ramps, grab rails or other necessary adjustments, older Australians will have the opportunity to adapt their home to suit their changing needs. For those recovering from illness or injury, there will be expanded access to restorative support with a 12-week program designed to help older Australians get back on their feet. This program will involve teams of allied health professionals under the specialists who can work with individuals to restore independence after a hospital stay or major illness.

Perhaps one of the most compassionate elements of the Support at Home program is the option for older Australians to receive up to $25,000 in additional support to spend their final months at home, should they choose. We know that up to 70 per cent of Australians would prefer to die in the comfort of their own homes, surrounded by loved ones, but fewer than 10 per cent actually do. Support at Home will make it easier for people to spend their last precious moments where they feel most comfortable, instead of in a hospital.

While this focus on home care is essential, we must not forget about the critical role our residential aged care continues to play. As the Aged Care Taskforce has noted, our residential aged-care system is under pressure. By 2050 we will need an estimated $56 billion in capital funding to upgrade existing facilities and build new ones to accommodate the growing demand. Current funding arrangements are simply not sufficient. In 2022-23, 46 per cent of aged-care providers reported making a loss on accommodation. This is unsustainable, and without action many facilities may not survive. This will lead to fewer options, and poorer quality care for older Australians will occur. That is why our reforms include a range of measures designed to improve funding and quality of residential care. It is important.

New entrants will see means-tested contributions to their accommodation while still ensuring fairness and affordability. In fact, half of new residents will not pay more under these changes. All fully supported residents and seven out of 10 full pensioners will see no increase in contributions. For those who can afford to pay more, contributions will be scaled according to income and assets. Importantly the treatment of the family home will not change, providing certainty for families worried about protecting their most significant asset.

For every $1 an Australian contributes to their essential care, the government will contribute an average of $3.30. This ensures that residential aged care remains accessible and that providers of resources need to deliver high-quality care. To provide further security, we're introducing a no-worse-off principle—

A division having been called in the House of Representatives—

Sitting suspended from 15:02 to 15:13

Before the suspension, I was speaking about the 'no worse off' principle. This means that anyone already in aged care will not be affected by these changes. They will not be required to make any additional contributions. Those receiving home-care packages before the Support at Home program begins in 2025 will maintain their current level of funding and will be able to retain any unspent funds.

Our reforms are not just about improving care; they also represent responsible financial management. Aged care is one of the largest-growing pressures on the federal budget. Without action, spending in this sector is expected to more than double over the next 40 years. But, with our reforms, we have carefully designed a package that improves care while also being fiscally responsible. The net impact of these changes will be a $930 million spend over four years but a $12.6 billion save over the next 11 years. This is about ensuring that the system remains sustainable for future generations. In fact, as a result of these reforms, annual growth in spending on aged care is expected to moderate from 5.7 per cent to 5.2 per cent over the next decade. Aged-care spending as a share of GDP will also decrease slightly, even as we expand care and improve quality. This is a testament to the careful and considered approach that the Albanese Labor government has taken to designing these reforms.

Beyond the numbers, though, we must also address the fundamental rights of older Australians in care. That is why we're introducing new laws to protect the rights of older Australians. These laws will enshrine a statement of rights, placing a positive duty on providers to uphold these rights. We are strengthening regulatory powers, creating a new independent complaints commissioner and introducing whistleblowing protections to ensure that any wrongdoing is swiftly identified and addressed.

At the heart of these reforms is a simple principle: putting the 'care' back into 'aged care'. Older Australians have spent their lives contributing to their country. They have raised families, built communities and helped shape the vibrant, diverse society we live in today. Our duty is to ensure they receive the care, respect and dignity they deserve in return.

I would like to thank the honourable Minister Wells and her team for preparing and presenting this bill for discussion. This reform is a once-in-a-generation change. It reflects the values that we hold dear: fairness, compassion and responsibility. As Prime Minister Anthony Albanese has said, these are reforms we are proud to deliver, as we promised we would.

See this speech in context