The federal government has reached a deal with the coalition as part of a $5.6 billion package.
Prime Minister Anthony Albanese said the changes would be the largest improvement in aged care in 30 years.
"This is about caring for the generation that cared for us," he told reporters in Canberra on Thursday.
Prime Minister Anthony Albanese announced sweeping reforms to support older Australians. (Mick Tsikas/AAP PHOTOS)
"We will deliver historic aged care reforms to ensure the viability and quality of our aged care system and support the growing number of older Australians choosing to retain their independence and remain in their homes as they age."
A home care package called Support at Home will come into effect from July 2025 and will help Australians live independently in their home with support before going into aged care.
It's estimated 1.4 million people will benefit from the program in a decade's time.
The government will spend $4.3 billion on the Support at Home scheme.
Support at Home will provide support for clinical care such as nursing and help with everyday tasks like cleaning or showering and dressing.
A new lifetime contribution cap of $130,000 will apply for non-clinical care costs.
The federal government will pay all of the cost of clinical care services, while individuals will pay for services to do with everyday living and independence, with the amount being means tested.
Those using the Support at Home program could also get $25,000 in aid to spend their final three months at home, rather than at a hospital.
The aged care agreement will provide a no-worse-off principle for people already in care facilities.
Aged Care Minister Anika Wells said the changes would mean better, safer care for older people. (Mick Tsikas/AAP PHOTOS)
New laws will also be introduced to protect the rights of Australians living in aged care, along with a regulator with investigative powers.
Aged care providers will also have a positive duty to uphold a statement of rights for older Australians in aged facilities.
New quality standards will also be put through for improvement in the sector.
Under the changes, the annual growth on government spending for aged care will moderate from 5.7 per cent to 5.2 per cent.
For every $1 per person in aged care contributes, the federal government will chip in $3.30 on average to residential care and $7.80 for Support at Home.
Aged Care Minister Anika Wells said the changes would lead to more services for older Australians.
"Our reforms will create better and safer care, help reduce the fear of a system that has been neglected for far too long," she said.
3°C