Home modifications funding cap threatens independence

Experts fear that new funding reforms will not keep older Australians at home for longer, with Occupational Therapy Australia (OTA) particularly concerned about the cap on home modifications.

A new Assistive Technology and Home Modifications Scheme (AT-HM) will be introduced under Support at Home from July 1.

Under the existing Home Care Packages (HCP) program, participants can accrue their package funds over time. They may do this to save for larger projects. Up to $10,000 is also available via the Commonwealth Home Support Programme (CHSP).

Yet the new system does not allow for any accrual, and the lifetime cap at the highest funding tier potentially restricts people to one major home modification.

Christina Wyatt, Professional Practice Advisor for Aged Care at OTA, has called the new $15,000 cap “grossly inadequate” and is urging the government to immediately reverse the decision.

“Major modifications can cost upwards of $50,000, while even smaller changes, like handrails or step modifications, can quickly consume the lower tiers of funding,” Ms Wyatt explained.

“Older people will try to stretch what little funding they have, but these small changes are often the key to preventing injuries that could lead to more expensive care needs down the line. These modifications help keep people safe and active at home.”

If older adults are forced to pay more substantial out-of-pocket expenses to purchase necessary home modifications, Ms Wyatt believes they may choose not to proceed with the job.

“Only 2% of people who need major modifications actually follow through with them due to financial barriers. The new cap will make it even harder for older Australians to remain independent and safe in their own homes,” she added.

AT-HM at a glance

AT-HM will enable older people to access critical funds to purchase mobility products like walking frames or wheelchairs, or to install grab rails, fixed ramps and other modifications that create an accessible home.

Both the assistive technology and home modifications funding tiers have the same funding allocation caps and 12 12-month time limit to spend the money. They funding allocations are as follows:

• Low: $500
• Medium: $2,000
• High: $15,000

Supplements to a participant’s funding are available to people in rural and remote areas to assist with the equitable provision of assistive technology and home modifications.

Participants will also have co-contribution requirements and must meet all additional costs above the funding tier limit.

Meanwhile, the high funding tier for home modifications may be extended for an additional 12 months if a complex home modification requires more time to be completed. That funding tier amount will not change as it is capped at $15,000 per lifetime.

Affecting those who want to stay home

Peter Willcocks, a polio survivor who now relies on a wheelchair for daily activities, highlighted the potential implications.

Mr Willcocks planned a major home modification when his condition worsened so that he could access essential areas of his home by wheelchair to maintain his independence.

He has already designed a laundry layout so he can use front-loading machines and dryers from his wheelchair.

“It takes me about 40 to 50 minutes to get dressed in the morning, but I can do it independently. I don’t need to rely on my wife. The pain of being a carer is something the government needs to understand and value,” he explained.

“The result [of these modifications]? I can be totally independent. But it’s unclear if such modifications would be covered under the changes to independent living funding.”

While the home is now suited to Mr Willcocks’ needs, he worries that others will not have the same opportunity to introduce all of the necessary modifications that promote independence.

The $15,000 lifetime cap just isn’t enough. I can’t see how anyone could make it work for essential changes that help older people stay safe and independent at home,” he added.

Ms Wyatt said the funding cuts could have dire consequences for older people who want to remain at home, such as an increased risk of falls that leads to hospitalisation, earlier entry into residential aged care, or even death.

Her belief is that investing in home modifications now will save money in the long term by reducing the need for more intensive and expensive care following an accident.

OTA would also like to see AT-HM be more flexible by reducing the lifetime cap, so there is always a safety net to support individuals as their needs change.

“Modifications that help people age at home are not just for those with complex disabilities. They can support people with back pain or help minimise falls, improving daily living for many older Australians,” Ms Wyatt said.