With major federal aged care reforms set to roll out from July 1, growing concern is emerging over the financial burden they may place on older Australians, particularly pensioners.
Christina Tsobanis, a carer and advocate for her mother who has Alzheimer’s, is among those speaking out. Her mother, currently on a level 4 home care package, receives 16 hours of care weekly.
Although existing clients like her mother are protected under a “no worse off” clause, Tsobanis fears the new system will be costly for newcomers.
“They’re already struggling. They’re already at their financial limitations and they’ve worked their whole lives, they’ve paid their taxes,” she said.
The new Support at Home Program, backed by both major parties, increases funding for those with the highest care needs from $60,000 to $78,000 annually.
However, it also introduces co-payments for support services, depending on income and the type of care.
Clinical care remains fully subsidised, but independence and everyday living supports will require out-of-pocket contributions — up to 17.5% for full pensioners and up to 80% for self-funded retirees.
Tsobanis has researched the changes extensively. Although her mother will remain under the old system, she calculated new users like her would face around $200 in fortnightly co-payments.
“The cost would mean we would need to substantially reduce the services we currently receive,” she said, adding that navigating the hardship policy for financial assistance is “degrading.”
Jim Moraitis, who runs an aged care education and advisory service, said the changes are creating confusion and fear.
“The overwhelming sentiment in our [community hub] is one of deep concern, anxiety and frustration,” he said.
Many providers currently waive fees to stay competitive, but Moraitis noted the structured co-payment model would make such waivers unlikely. He estimated that even full pensioners may face an additional $10 to $30 weekly — a significant hit for those surviving on a $1,100 fortnightly pension.
“For someone living on the full pension… even a modest co-payment could impact affordability,” he said.
Moraitis also raised concerns that some retirees, especially those managing complex finances or without accessible funds, may opt out of services altogether — potentially delaying care and increasing hospital pressure.
He warned against attempting to avoid fees by moving assets into trusts or gifting money to family, noting strict Centrelink rules count such assets for five years.
“Anyone considering these strategies should seek financial advice… to avoid unexpected consequences,” he said.
As the July rollout nears, advocates like Tsobanis and Moraitis are urging clearer communication, simplified support systems, and recognition of the vulnerability of older Australians.
“They have worked all their lives and now they’re elderly they have to sit there and justify their existence?” Tsobanis said.
Source: ABC.
