Are you an older Australian who is receiving care in your home? Or are you looking after a loved-one who requires additional support to maintain their independence? From July 1, home care packages will transition to a new Support At Home system.
Last week, the Federal Government released indicative prices of services under the new system. The government states that this price guide is based on feedback from over 300 home care providers regarding their intended charges for services.
However, questions are being raised about the costs retirees have to pay.
So how much do individuals have to pay, and is the cost worth it?
How much do retirees have to pay?
The Support At Home program classifies services into three groups. How much you pay for services depends on the type of care you receive and your income level.
• Clinical care: These services will be fully funded by the government with no co-payment required
• Independence: Full pensioners will contribute 5 per cent of the cost of these services. Meanwhile, self-funded retirees will contribute 50 per cent of the costs.
• Everyday living: Contributions for these services will range between 17.5 per cent and 80 per cent.
Is the cost worth it?
Questions have been raised about the cost of services offered on the scheme. For example:
• Registered nurses cost on average $160 an hour
• House cleaning costs up to $109 an hour
• Assistance with administering medication can cost up to $115 an hour
• Allied health professionals, such as psychologists, social workers, and occupational therapists, cost an average of more than $200 per hour.
• Assistance with showering, meal preparation and home maintenance costs around $100 an hour
Meal delivery costs $15 per meal. This could mean an additional $150 per week on top of the cost of your meals if you are receiving five lunches and five dinners delivered each week.
For self-funded retirees, the costs are especially high.
Under the changes, two and a half hours of independence services a week will cost $13,000, with the self-funded retiree contributing $6,500. Three hours a week of everyday living services will cost $15,600, with the self-funded retiree paying $12,800. This means the self-funded retiree will pay more than $19,000 for less than a day a week of services.
However, taxpayers will also be required to fund these supports to the tune of $19,000 a year. Overall, this means that less than an hour of care per day will cost approximately $40,000 per year.
On the surface, the system appears to be designed with fairness in mind. Aged care providers must be able to meet the costs associated with delivering services. Given that self-funded retirees are better-off financially than most, it is only fair that they pay more for services. Additionally, for many people, the prospect of maintaining their independence while living at home is priceless.
However, in a cost-of-living crisis, high costs may deter older Australians from accessing the services they need to help maintain their independence. It’s crucial to remember that these services can prevent older people from ending up in the hospital or residential aged care, which is not only beneficial for them, but it also saves the taxpayer money. If Support at Home services do not prevent people from moving into residential aged care, are the costs really worth it?
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Article References
Lane, R (1 April 2025) ‘$15 per food delivery? These new aged care prices are outrageous’, Sydney Morning Herald, accessed 7 April 2025.
Lloyd-Jones, K (25 March 2025) ‘Support at Home prices released’, Australian Ageing Agenda, accessed 7 April 2025.