The federal government has reversed a controversial decision that required some older Australians to pay up to $50 an hour for basic care services, including showering. This policy shift comes just six months after sweeping changes to the aged care sector were first implemented.
Ending Co-Payments for Essential Care
Under a previous overhaul of the Support at Home package, the government sought to rein in spending by introducing co-payments. Pensioners, part-pensioners, and self-funded retirees were required to pay between 5 and 50 per cent of service provider fees.
For some, this resulted in out-of-pocket costs of approximately $50 per hour for basic support. The financial pressure meant some recipients were forced to forgo other care or shower less frequently.
Aged Care Minister Sam Rae has since conceded that showering, dressing, and continence care are essential services rather than “optional extras.” He stated that these services are fundamental to aging with dignity and should not be inaccessible due to cost.
The reversal is set to accept effect in October, although co-payments for non-clinical care will continue.
Government Funding and Implementation
Health Minister Mark Butler is scheduled to announce the reversal during a speech at the National Press Club in Canberra this Wednesday. During the address, he will also detail plans to stem the growth of the National Disability Insurance Scheme (NDIS).
The government may divert some of the money saved from the NDIS to support aged care. Even as the total cost to taxpayers is not yet clear, the policy shift is likely to exceed one billion dollars.
Advocacy and Future Expectations
The move has been welcomed by sector representatives. Tom Symondson, Chief Executive of Ageing Australia, described the decision as a “common sense” and “human rights” move that could help restore trust in the November reforms.
Corey Irlam, acting chief executive of the Council on the Ageing (COTA), called the announcement welcome but overdue, arguing that no one should have to choose between affordability and basic personal care.
Advocacy groups, including OPAN, COTA, and Ageing Australia, are now hopeful that further announcements may be made before the budget. Their priorities include reducing waiting times for assessments and packages.
You’ll see calls to change the assessment tool that uses an algorithm to determine eligibility for home supports. Samantha Edmond of the Older Persons Advocacy Network (OPAN) has stated that the sector wants to see human oversight in this process.
This latest action follows a previous decision where the government fast-tracked 20,000 extra home care packages to address a massive backlog of people waiting for help.
Frequently Asked Questions
When will the removal of showering co-payments take effect?
The change is scheduled to take effect from October.

Who was impacted by the $50 per hour charges?
The charges affected older Australians on Support at Home packages, specifically pensioners, part-pensioners, and self-funded retirees.
Where is the government expected to find the funding for this reversal?
The government plans to stem the growth of the National Disability Insurance Scheme (NDIS) and may divert some of those savings to aged care.
Do you believe basic personal care should always be fully funded by the government, regardless of a patient’s financial status?
