Sydney, NSW – 29 April 2025: Australia's older citizens are facing a crisis. Despite the Royal Commission into Aged Care Quality and Safety highlighting the need for rights-based, person-centred care, the government's current aged care funding model threatens to leave some of the most vulnerable people in our community without the support they need to live safely at home.
A group of experienced in-home care providers, collectively holding over 160 years of frontline experience have issued a stark warning: unless urgent action is taken, older Australians will be put at risk by a flawed and underfunded system that prioritises cost over care.
The Human Cost of a Broken Model The new Support at Home program is being rolled out in less than three months, yet critical questions remain unanswered particularly around how older people will afford the personal care they need. The proposed consumer co-contribution model risks pushing essential services out of reach for pensioners and other low-income older Australians.
This means some pensioners may be forced to choose between food and personal care, between getting out of bed safely or risking a fall. The financial "cost shock" will be real and immediate, especially for baby boomers who were promised by governments of the past that they would be looked after in old age.
Under the new model, while clinical care will remain fully government-funded, older people, including full pensioners, will be expected to contribute financially to other services that support their ability to live independently at home.
For those already living on tight budgets, these contributions may prove unaffordable.
For example, a full pensioner might be asked to pay:
- 5% for services that support their independence, like showering assistance or home modifications.
- Up to 17.5% for everyday living services, such as cleaning, shopping support, or gardening.
These costs, while modest on paper, can quickly add up. Consider Mary, a full pensioner assessed by Services Australia, who requires several hours of care each week to remain safely in her home:
| TYPE OF SERVICE | NUMBER OF SERVICES PER WEEK | RATE PER SERVICE | GOVERNMENT CONTRIBUTION | MARY'S CONTRIBUTION |
| Clinical care | 1 hour per week | $160 per hour | $160 | $ Nil |
| Personal care | 3 hours per week | $100 per hour | $ 285 |
$ 15 |
| Shopping | 2 hours per week | $100 per hour | $ 165 | $ 35 |
| House cleaning | 2 hours per week | $100 per hour | $ 165 | $ 35 |
| Gardening | 2 hours per week | $110 per hour | $ 181.50 | $ 38.50 |
| Remedial Massage | 1 hour per week | $150 per hour | $ 142.50 | $ 7.50 |
| TOTAL AMOUNT PER WEEK | $ 1,099 | $ 131 |
||
Mary receives over $1,000 worth of services each week yet still faces a personal bill of $131, despite being on the pension age. That's more than 20% of her weekly income, forcing hard choices about what she can go without: food, medication, heating… or the help she needs to shower and stay safe at home.
Aged care providers are deeply concerned that older Australians will opt out of essential care — increasing their risk of hospitalisation or premature entry into residential care. No older person should be forced to choose between their dignity and their dinner.
Dismantling the Care Relationship The government's transactional funding model reduces care to "units of service" and overlooks the importance of human connection. Older people risk losing trusted relationships with care workers, replaced instead by quick, impersonal visits. This goes directly against what older Australians say they value most: continuity, trust, and genuine care.
In addition, the arbitrary 10% cap on care management funding means older people will have even less access to the expert oversight needed to keep them safe. Care management is the glue that holds quality care together. It ensures services are tailored to people's needs, risks are managed, and families are supported.
The Consequences Are Clear Without urgent changes to funding:
- Older Australians will face preventable harm, including falls, infections, and missed signs of deteriorating health.
- More people will be forced prematurely into residential aged care, or worse, into hospitals due to lack of support at home.
- Families will be left to navigate palliative care alone, increasing the emotional and financial burden.
- Elder abuse and neglect may go undetected, as oversight and monitoring fall by the wayside.
What a Safe, Fair Aged Care System Must Deliver Real Choice and Dignity: Holistic, relational care that respects older people's needs and preferences.
Support for Families: Care that lightens the load, rather than shifting more pressure onto loved ones.
Smart Investment: Funding that prevents costly hospital and residential admissions through early intervention.
Clear Navigation: Helping older people and families understand and access the services they need.
Our Call to Government To avoid putting older Australians in harm's way, we urge the federal government to take immediate action:
Remove Financial Barriers: Review the co-contribution model to ensure vulnerable people are not priced out of essential care. Count personal care as a clinical service, making it fully funded and accessible for all.
Restore Adequate Care Management Funding: Lift the cap from 10% to at least 17% to reflect the critical role care managers play in delivering safe, tailored, and compassionate support.
If these changes are not made now, we risk failing the very people the aged care system is meant to protect. The government must act before irreversible harm is done.
