Occupational Therapy Australia (OTA) acknowledges the announcement by the Hon. Sam Rae MP to defer the implementation of the new Aged Care Act to 1 November 2025.

This decision follows sustained advocacy from OTA and other sector stakeholders calling for more time to address serious gaps in the proposed reforms. OTA welcomes the Minister’s willingness to listen to feedback and his recognition of the need for further preparation. However, this extra time must now be used to fix the issues that could compromise the safety, independence and wellbeing of older Australians.

“This deferral gives us a critical opportunity to get it right,” said Michelle Oliver, Chief Occupational Therapist at Occupational Therapy Australia. “That means recognising the clinical expertise of allied health professionals and ensuring home modifications are properly funded to keep people safe at home.”

In May, OTA wrote to the Minister highlighting significant concerns raised by occupational therapists across the country. These included unsustainable pricing under the proposed Support at Home program, the lack of clear recognition of occupational therapists within aged care structures, and unrealistic funding caps for essential home modifications. OTA is particularly concerned about the proposed lifetime caps for home modifications. These caps do not reflect the actual cost of essential changes that help older people remain independent, such as bathroom upgrades, ramps and structural access adjustments.

"The proposed lifetime caps for home modifications fall well short of what is needed," according to Michelle Oliver. "A simple ramp can cost nearly two thousand dollars, and a full bathroom modification can exceed fifty thousand. The funding on offer simply will not stretch far enough."

Without appropriate investment, OTA warns that older Australians will be placed at greater risk of injury and hospitalisation. Providers may also be unable to safely deliver care in homes that have not been adequately modified.

"Occupational therapists are not optional extras in aged care. They are essential to keeping older Australians safe, independent and out of hospital," Michelle Oliver said.

OTA urges the Government to use the additional time to:

• Clearly define the clinical role of occupational therapists within the Aged Care Rules
• Base home modification funding on assessed need and realistic cost estimates
• Support older Australians to age safely in place through fair and accessible funding

OTA remains committed to working closely with the Minister and the Department of Health, Disability and Aging to ensure that these reforms achieve their goal of building a high-quality and sustainable aged care system that truly meets the needs of older Australians.

Occupational Therapy Australia

Occupational Therapy Australia (OTA) is the professional association and peak representative body for occupational therapists in Australia. There are more than 30,000 registered occupational therapists working across the government, non-government, private and community sectors in Australia. Occupational therapists (OTs) are allied health professionals whose role is to enable their clients to engage in meaningful and productive activities.