Butler scraps out-of-pocket aged care fees

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Butler scraps out-of-pocket aged care fees
Butler scraps out-of-pocket aged care fees
Mahathir Bayena
Written by Mahathir Bayena
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Australian Health Minister Mark Butler is set to announce the removal of out-of-pocket costs for essential aged-care services, including showering, dressing, and continence management.

Set to be unveiled at the National Press Club in Canberra, the reform reclassifies these services as "clinical care" under the Support at Home programme, ensuring they are fully funded by the taxpayer.

The change, slated for implementation on Oct. 1, follows intense public backlash and a coordinated campaign led by Independent Senator David Pocock after the new Aged Care Act introduced service charges last November.

Minister Butler is expected to acknowledge the flaws in the current framework, framing the adjustment as a commitment to maintaining dignity for older Australians regardless of their financial standing.

The move comes as the government prepares for the 2026-27 budget, scheduled for 12 May, where fiscal pressures remain acute.

Aged Care Minister Sam Rae emphasised that these services are "not optional extras" but fundamental rights that require protection.

However, the relief for the aged-care sector stands in stark contrast to looming austerity elsewhere.

The announcement will coincide with details regarding substantial cuts to the $50 billion-a-year National Disability Insurance Scheme.

Treasurer Jim Chalmers has warned the scheme’s growth is unsustainable, especially as a global energy crisis and high fuel prices force the government to redirect $2.5 billion towards cost-of-living relief.

While aged-care users gain critical concessions, the broader budget faces a precarious balancing act between social responsibility and economic constraint.

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