The Australian federal government has unveiled a $5.6 billion reform package aimed at enhancing support for older Australians who wish to remain in their homes.

A central feature of these reforms is the introduction of a $4.3 billion program called 'Support at Home', designed to assist approximately 1.4 million Australians in aging in place starting July 1, 2025.

With the number of Australians over 80 projected to triple in the next 40 years, these reforms are crucial to meet the increasing demand for aged care services.

The changes respond to recommendations from a royal commission that highlighted the urgent need for reform in the aged care system.

Notably, fully supported aged care residents will not face higher contributions, with a significant portion of pensioners exempt from increased fees.

Current funding arrangements have been deemed inadequate to sustain the aged care sector, necessitating these comprehensive reforms.

The new Aged Care Act will introduce enhanced protections for older Australians, including a statement of rights and measures to protect whistleblowers.

This initiative will also provide $15,000 for home modifications, enabling older individuals to stay in their homes longer.

The government has reached a bipartisan agreement with the opposition, which includes a provision requiring wealthier Australians to contribute more toward their care costs.

Under the new reforms, a lifetime contribution cap of $130,000 will be established for non-clinical care costs, ensuring that while many new residents may see increased contributions, there are limits in place.

Importantly, these changes will only affect new residents entering the residential aged care system from July 1, 2024, protecting existing residents from increased costs.

Reactions to the reforms have been largely positive within the aged care sector, with calls for further discussions on the implementation and details of the changes.