Australian Government to unveil aged care overhaul

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$270 million will go towards supporting dementia patients and their carers. [Michaela Rehle, file photo: Reuters]

Last Updated: Fri, 20 Apr 2012 06:36:00 +1000

The Australian Government will unveil changes to how people pay for aged care services, which will see wealthy Australians pay more for care.

The changes will also include $AU270 million to support those with dementia, whether they are living at home or in residential care.

By 2050, it is forecast that nearly one million Australians will have dementia and more than 3.5 million people are expected to use aged care services each year.

The government says it wants to introduce more equity into the system so that people's ability to pay for aged care services is taken into account when setting costs.

The changes will mean wealthier Australians contribute more to the cost of their care than those on the pension, but costs will be capped.

There will also be more flexibility in how people pay, so that no one is forced to urgently sell the family home.

Prime Minister Julia Gillard is expected to announce more details about the package to support people with dementia and their carers.