The Federal Government says it has “listened” to public concern, reversing parts of its aged care reforms after criticism that the changes left some older Australians choosing between essential care and everyday costs.
Under new measures announced by Health Minister Mark Butler, from October, people receiving Support at Home will no longer have to pay for help with showering, dressing and continence care. These services will be reclassified from “personal care” to “clinical care”, meaning they will be provided at no cost.
The move follows backlash to reforms introduced in November 2025, which placed these everyday supports under a co-payment model.
Minister for Aged Care and Seniors Sam Rae said the change reflects the reality of ageing: “Showering, dressing, continence care… these aren’t optional extras. They’re the basics of ageing with dignity.”
The changes form part of a broader $3 billion investment in aged care in the upcoming Federal Budget, aimed at expanding home care packages, delivering more beds, and improving support for older Australians.
What are the concerns with the aged care reform?
Earlier this month, more than 100 federal politicians from across the political spectrum called on the government to urgently fix Australia’s aged care system, warning it was leaving some older Australians worse off.
The Labor government’s “Support at Home” program aimed to simplify and improve access to care for older people who want to remain living at home. But in a rare show of unity, politicians from the Liberal, National, Greens and crossbench wrote to Minister for Ageing and Seniors Sam Rae, outlined what they described as serious and immediate problems. Their concerns were echoed by aged care providers and advocacy groups, who say the rollout has been more complex and costly than expected.
The group says it was hearing an “avalanche of concerns” from older Australians who are struggling to access – or afford – basic, everyday care.
Shadow Aged Care Minister Anne Ruston said older Australians were told they would not be worse off, but “what we’re seeing is every single day, older Australians are coming to us and telling us that they are significantly worse off because of these reforms.”
They say essential services such as help with showering, dressing and meal preparation are becoming harder to access under the new system. For some, costs have increased, forcing difficult decisions about daily care.
Delays are also a major issue. Thousands of older Australians are still waiting for care packages and some are dying before they receive support.
Senator Rebekha Sharkie said nearly 5000 older Australians died waiting for care in the past year.
“Under this government’s new system, out of 130,000 older Australians who are patiently waiting for care, the government deems only 129 of them are urgent,” she said.
What’s going wrong with the new system?
The aged care reforms introduced a new assessment process that uses an algorithm to determine how much support a person is eligible to receive. While it was intended to make decisions faster and more consistent, there are increasing reports it does not reflect people’s real needs.
Some older Australians with complex or worsening health conditions are reportedly being reassessed at lower levels of care, even when medical evidence shows they need more support. In many cases, assessors and frontline staff are unable to override these decisions, even when they disagree.
Department of Health figures show around 800 review requests have been lodged since the algorithm was introduced, compared to 178 in the previous financial year, reports the ABC.
Even when funding is approved, providers say the process can be slow and overly bureaucratic. Health workers report spending more time on paperwork, while carers and families describe delays and confusion about how funding can be used.
Another key issue is cost. Under the new model, some everyday services are now classified in ways that require people to contribute financially, forcing some people to choose between help with meals or personal care.
Without adequate support at home, there are fears more people could end up in hospital due to preventable issues such as falls, infections or poor nutrition.
What changes are being proposed?
The group of politicians is calling for a series of changes to ensure the system better supports older Australians.
They want stronger human oversight in the assessment process, so decisions reflect individual circumstances rather than relying on automated systems.
There are also calls to reclassify essential daily care, such as showering, dressing and continence support, so these are treated as core care needs rather than optional services that attract additional costs.
Other proposed changes include reviewing how services like meal preparation are categorised, reassessing limits on case management fees, and providing clearer, more transparent information about pricing, particularly as service costs continue to rise.
