Older Australians will be given more support to stay in their own home for longer under sweeping reforms to aged care.

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 said in Canberra on Thursday.

“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.”

Our new Support At Home program will benefit up to 1.4 million older Australians.

Giving people more choices about the kind of care they can receive and helping them maintain their independence for longer.

These historic reforms will improve the funding, viability and quality…

— Anthony Albanese (@AlboMP) September 12, 2024

A home-care package called Support at Home that will begin in July 2025 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. It will provide support for clinical care, such as nursing and help with everyday tasks such as 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.

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-care facilities.

Quality standards will also be introduced to bring improvement to the sector.

Aged Care Minister Anika Wells said aged care was something people currently dreaded, which needed to be addressed.

“It’s not something that people look forward to. And after the stories we heard in the royal commission, I’ve heard too many times over the past two years that it’s something that people dread and people actively avoid,” she said.

“We are re-gearing the entire system of aged care in this country to be about supporting you at home and keeping you independent and supported at home for as long as possible.”

The government’s deal was broadly welcomed by the aged-care industry on Thursday.

The Aged & Community Care Providers Association said they were “historic reforms that will be vital to all Australians now and in the future”.

“Minister Anika Wells, … Mark Butler, and [the] shadow minister for health and aged care, Senator Anne Ruston, should all be congratulated for working through such complex legislation and delivering a genuinely bipartisan outcome,” chief executive Tom Symondson said.

St Vincent’s Care said the changes were “the most impactful” in a long time.

“It will raise standards and ensure the system can be adequately funded to deliver the aged care our parents and grandparents deserve and need. Now and in the future,” chief executive Lincoln Hopper said.

Older Persons Advocacy Network CEO Craig Gear said it was a package that could ensure high-quality care and financial viability for the sector.

“The new Aged Care Act has the potential to enhance quality standards, increase protections for older people, and create a financially sustainable aged-care system for future generations,” he said.

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 a 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.

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.

-with AAP