Discriminatory measures acknowledged as Federal Budget changes signal a step closer to aged care fairness for survivors

Exemptions made to Stolen Generations redress

Changes reflected in the Federal 2026 budget to make Stolen Generations redress payments exempt from means testing for residential aged care removes undeniable discrimination for survivors, The Healing Foundation said today. 

Payments made under Stolen Generations redress schemes to survivors – including those currently open in Victoria, WA, and the Territories, ACT & NT – were not originally made exempt from being means tested as an asset for residential aged care.

This meant the payments were counted against how much recipients would be required to pay for residential aged care. This directly contradicted government’s decision to exempt National Redress Scheme payments early last year, a move The Healing Foundation has called clear discrimination. 

The Healing Foundation had repeatedly warned without the exemption, survivors faced the prospect of being financially penalised in later life for compensation they waited decades to receive. Redress payments were intended to acknowledge profound harm, not fund essential care.

The Healing Foundation Chair Professor Steve Larkin said the government’s move to exempt redress payments made to survivors signaled accountability for policy decisions.

“The Australian Government has recognised that subjecting state and territory Stolen Generations redress payments to aged care means testing while exempting National Redress Scheme payments was a clear issue of injustice,” Professor Steve Larkin said.

“We welcome the government’s decision to treat all redress payments equally. This is the right thing to do.

“These changes represent a real sense of relief for survivors, removing one more burden among many they are forced to navigate. Abolishing a discriminatory measure like this will help ease ongoing pressure and uncertainty.”

The Healing Foundation CEO Shannan Dodson acknowledged “This change shows that government is prepared to listen to the voices and experiences of Stolen Generations survivors and respond to concerns about fairness”.

“We welcome this decision and the recognition that redress should never place survivors at further disadvantage. It also gives us hope that this signals an openness to continue working together to build an aged care system that is culturally safe and trauma informed for survivors as they age,” she said.

The budget announcement comes after The Federal Government’s decision last month to reverse its plan to charge for basic personal care in its Support at Home program. This included services like showering, dressing and continence care under the co-payment measures, and meant survivors could have been paying anywhere between $50 up to as much as $500 a week for essential supports.

The Healing foundation remains concerned about the remaining co-payments on in-home supports such as transport, cooking and cleaning – as well as continued means testing of redress payments for in-home services, which still remain as barriers to essential care for ageing survivors.

The Healing Foundation will continue working with government for reforms that address these barriers and provides the essential care needed to ensure the dignity of Stolen Generations as they age.

Media contact: Dylan De Jong – 0409 867 747 or HFmedia@healingfoundation.org.au