Government to scrap out-of-pocket aged care personal care services costs
Make us a preferred source
Make us a preferred source on Google
The news: Health Minister Mark Butler will on Wednesday scrap out-of-pocket costs for aged-care package holders for showering, dressing and support with continence management under the government’s Support at Home aged care program.
As part of the 2026-27 Budget, to be announced on 12 May, these care items will be moved into the “clinical care” category, fully removing costs for users.
The context: The changes follow widespread public anger that the new Aged Care Act, which took effect last November, applied charges to the personal care services.
Late in March, a group of 21 senators and MPs convened by ACT Senator David Pocock wrote to Aged Care Minister Sam Rae to eliminate the costs.
At the National Press Club in Canberra on Wednesday, Butler will commit to implementing the change, effective from 1 October this year. Butler will accept the criticism of existing arrangements and say the changes have come from the experience of monitoring the implementation of the new act and meet his commitment to provide dignified, quality care to every older Australian — no matter their means.
The announcement will be made in an address expected to include details of significant cuts to the $50 billion-a-year National Disability Insurance Scheme (NDIS), which Treasurer Jim Chalmers on Monday conceded was growing unsustainably and needed to be pared back.
Chalmers briefed state counterparts on the plans on Tuesday.
The NDIS cuts will be the biggest in the Budget, which is under increasing pressure because of the global energy crisis which has constrained economic activity and forced the government to surrender $2.5 billion in revenue to fund cost of living relief for families hit hard by high fuel prices.
What they said: Minister Rae will say: “Showering, dressing, continence care — these aren’t optional extras. They’re the basics of ageing with dignity, and no older Australian should miss out because of cost. Older Australians, their families and providers told us these services needed to be protected. We’ve listened, and we’re acting.
“We said when the Aged Care Act commenced that we’d keep watching how the reforms landed and fix what needed fixing. That’s exactly what this is. And as our population ages, we’ll keep doing the work to make sure the system is strong enough, and fair enough, to meet the moment,” Rae will add.
The source: Sam Rae and Mark Butler speech extracts
