Aug 26, 2024

Aged Care Act: Delayed, Not Derailed?

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Do the recent Aged Care Act delays mean the reform agenda is derailed entirely? [Copilot]

Despite expectations the new Aged Care Act was ready to be presented to Parliament last week, the once-in-a-generation reform has been delayed yet again.

There are concerns that if this legislation is not introduced and legislated this year, it could be too late to help improve aged care for some older people and providers.

Key points

  • The Royal Commission into Aged Care Quality and Safety highlighted the need for a new Aged Care Act in 2020; the exposure draft for the new Aged Care Act was then published in late 2023
  • However, after initial expectations it would be approved by June 2024, ongoing discussions around new aged care funding mechanisms saw the Labor Government officially delay its implementation until July 1, 2025
  • The Government and opposition Coalition government have also argued over key elements such as criminal penalties for aged care directors who do the wrong thing, the removal of lifetime contribution caps for older people and the user pays model for wealthier older people
  • While both parties have compromised on a number of issues, the new Act was not introduced to Parliament last week and time is running out 

What changes are on the way?

For most people, the Aged Care Act isn’t a document to read through and check every day. However, it forms the foundation for aged care in Australia and there are some pretty important changes on the way.

The biggest difference between the new Act and the old one from 1997 is it is centred on promoting the rights of older people rather than empowering aged care providers.

It means aged care will be legislated by a rights-based framework that enables supported decision-making, a stronger aged care advocacy network, increased transparency, culturally safe and appropriate care and user rights.

The new Act will enforce the obligations of aged care providers and the aged care workforce through several modern instruments, including a Code of Conduct, Statement of Rights and Aged Care Quality Standards.

But there are also a few notable changes expected to be officially announced in the near future. 

“The refundable accommodation deposit, a payment now pegged at a maximum $550,000, will have that rate lifted as part of the reforms so more interest from the bonds can be used to pay for the aged care services being provided,” Sky News Political Editor Andrew Clennell explained.

“The daily fees to pay for things like food and other services will also be lifted. I’m told speculation that self-funded retirees could pay as much as $40,000 a year for their care is wrong.”

Assurances have also been made that aged care will be accessible to everyone with healthcare/direct care costs to remain Government funded. Food, accommodation and other services will be funded by users. 

Mr Clennell said the Aged Care Act will total 500 pages.

When will the Aged Care Act be introduced?

While question marks certainly linger regarding the final look of the new Act, the biggest question still remains around when it will be legislated.

The Government said it will be ready for July 1, 2025, but if they cannot secure the opposition party’s official support, there might not be enough time to ensure it meets the needs of aged care consumers. 

The window is closing, too, as the Senate only has 19 more sitting days in 2025. And with a Federal Election to be held at some stage in 2025, the Labor Government could be running out of time to legislate the Act before it hits the brakes on issues that could polarise voters. 

Aged care leaders are putting pressure on the Government to ensure this doesn’t happen. A joint statement from the likes of ACCPA, Anglicare Australia and Catholic Health Australia said, “This may be the last opportunity in which the Act can be introduced to Parliament to ensure timing for proper parliamentary process and public consultation.

“All parts of the Bill must be introduced into this once-in-a-generation reform: rights, Support at Home, and fair, sustainable funding. If action is delayed any further, older people and the dedicated providers who support them cannot be assured of the future of aged care in Australia. 

“Older Australians deserve dignity, respect and access to quality care.”

Any further delays to the Aged Care Act in September, when Parliament next sits, could result in more criticism over the Government’s ability to complete its promised reform agenda. 

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  1. This Act will be deeply unpopular. The Albanese government knows this. Aged Cared is also very expensive so the general idea is to scale back public spending and let the private sector do what it does best. You only have to go and work for one of these corporate chains to see that it is actually all smoke and mirrors. The shareholders line up like pigs at a trough while the suits parade around extolling their virtues. It really is a circus. The problem is that the people they are supposed to be looking after are your Mum and Dad.

  2. There are a number of things that bemuse me regarding the current Aged Care and Disability services and their associated funding. Firstly the Governments commitment to increase the “contribution” made by aged people dependent upon their means tested ability to pay, forcing them to often dispose of assets that it has taken a lifetime to build up and as such, leaving them potentially homeless should their accommodation choice not work out. The statement that “Older Australians deserve dignity, respect and access to quality care.” seems to fly in the face of reality as it strips them of the dignity to return to their home should they choose to do so and also takes away the respect of recognition for what they have worked so hard to achieve. The NDIS by contrast has no means test, no consideration of assets to offset the public contribution for care. How is this fair? The two statements that relate to each service in them selves appear to have a common goal i.e. “Older Australians deserve dignity, respect and access to quality care.” and “People with a disability can live their best life under the NDIS”, while in fact they are poles apart with older people living in huge communal homes, often not of their choosing, but vacancy related, while paying high level bonds and charges for the privilege, while those under the NDIS are afforded the opportunity to live in small, usually 4-6 cluster accommodation, have better access to support services, community connections and social supports and yet do not contribute at all to their care.
    It is time that the Government followed its preaching regarding respect and dignity and had a uniform support program for all people requiring care and support. It is time to stop calling out financial elder abuse which, when considering the inequities nature of the Aged Care and Disability Programs, where the aged pay and people with a disability do not, is being perpetrated by the Government itself, and start to look at implementing a fair and reasonable program to support everyone equally.
    So lets hope that there is someone who is willing to introduce this fact into the Parliamentary considerations and consider a better, fairer approach actually couched in dignity and respect for our elders.

  3. This new Age Care Act has wonderful promising words but it does NOT ensure that “Dignity, respect and access to quality care” are available for older Australians. It does NOT threaten providers with fines or goal sentences infacxt it promised thart there will be NO consequences for those who do not respect nor offer dignity to older people. It does NOT carry out the wishes of the Royal Commission. It is an act where the wishes of the providrs have benn closely observed while the conditions it promises for elders are similar to those of the old workhouses in England last century where only the wealthy had a hope of a decent meal and a bed.

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