Australia’s aged care sector is poised for significant change as the Albanese government’s Aged Care Reform bill moves closer to becoming law. After a bipartisan agreement in the Senate, the bill is set to return to the House of Representatives next week, where it is expected to pass without challenge.
The reforms, described as “once-in-a-generation,” aim to realign aged care towards the needs and rights of older Australians while saving billions from the federal budget by shifting more costs onto aged care residents.
Patricia Sparrow, Chief Executive of the Council on the Ageing (COTA) and a member of the government’s Aged Care Task Force, spoke to ABC Radio about the historic reforms. She described them as a direct response to the findings of the Aged Care Royal Commission.
“The most important thing about the bill is that it does what the Royal Commission wanted: it shifts the focus to being on the older person. The legislation we’ve had since 1997 was primarily about the relationship between providers and government. This reform is rights-based, centred on what older people actually want and need from aged care.”
The overhaul introduces stronger consumer protections, an independent complaints process, and enhancements to home care services. Sparrow highlighted these elements as crucial to improving the quality of care for Australians.
“There are substantial reforms in this bill. It includes a revised support-at-home programme, with the government putting more funding into helping people stay in their homes longer. It also strengthens protections around what’s currently called additional services in residential care, ensuring older people get the quality they deserve.”
A contentious feature of the reform is its revised funding model, which requires those with greater financial means to contribute more towards their care. While the government will remain the primary funder of aged care, the changes will reduce the federal budget’s burden by shifting costs onto residents based on their income and assets.
“People have told us for years that if they can afford to pay more and the quality of care improves, they are willing to contribute,” Sparrow explained. “The structure ensures that if you have the capacity to pay more, you will, but if you don’t, you won’t be asked to. Protections are in place to ensure everyone has access to high-quality care regardless of their financial situation.”
The reforms diverge from the Royal Commission’s suggestion of an aged care levy, which would have spread costs across all Australians. The Task Force opted instead for a means-tested model. Sparrow said this decision was grounded in intergenerational fairness.
“The Royal Commission gave a mixed report – one commissioner recommended a levy, while the other suggested a model like the one we’re implementing. Ultimately, we felt it was fairer for those who can afford it to contribute more, as long as safeguards are in place to protect those who can’t.”
While the reforms have bipartisan support, some have raised concerns about a perceived lack of transparency in the development process. Sparrow, however, believes the debate in the Senate and the forthcoming subordinate legislation provide ample opportunities for scrutiny.
“I know not everyone sat and watched the Senate yesterday as I did,” she said, “but there was robust debate, and several amendments were made. Additionally, the details of the subordinate legislation will go back to committee, ensuring transparency moving forward.”
Despite the significant changes, Sparrow stressed that improvements are still needed, particularly in home care.
“The Act introduces a revised support-at-home programme, and the government has committed to additional funding. But one of the goals is to reduce the waiting time for home care to three months. We think that’s still too long. If you’re at home and need support, you should be getting it within a month.”
The government has described these reforms as a transformative moment for the sector, and Sparrow agrees that they represent a solid foundation for the future.
“This is a really good starting point. It’s a fundamental shift in the way we approach aged care – it’s now about the rights of the individual. As the system rolls out, there’s flexibility to make additional changes to improve outcomes for older Australians.”
With the federal election looming next year, the reforms could take aged care off the political agenda in the short term. However, Sparrow insists that there is more work to do to ensure an ageing Australia is supported effectively.
“We’ll continue advocating for older people. Whether it’s improving access to care, reducing wait times, or addressing other issues affecting our ageing population, we’ll be there to ensure their voices are heard.”
