The Government has introduced a new ‘Aged Care Bill’, after securing a deal with the Opposition to introduce reforms to the sector.
The new law includes a $4.3 billion to keep more older Australians at home for longer.
The plan is aimed at easing pressure on demand for aged care homes.
Aged care services will become more expensive for self-funded retirees (who aren’t reliant on government pensions).
Here’s what’s changing.
Royal Commission
The Royal Commission into Aged Care launched in October 2018.
The inquiry’s final report, handed down in 2021, included evidence of widespread abuse and neglect in the sector.
It discovered that aged care residents were receiving “substandard care” across everyday needs, like diet, and medication delivery.
The report also said care facilities weren’t doing enough to stop the spread of infection.
It warned Australia’s ageing population would place increasing pressure on the sector.
The final report said that in 2019, there were 4.2 working-age Australians for every person over 65. It estimates this number will drop to 3.1 by 2058.
“There will be relatively fewer people of working age available to pay taxes to fund the aged care system and to meet the growing demand for services,” it said.
The Commission made 148 recommendations, including to update outdated legislation that lays out the rules for the sector.
New laws
On Thursday, the Government announced it’s secured support from the Opposition to pass new aged care legislation.
Its planned reforms include a new statement of rights for older Australians, requiring caregivers to provide a minimum standard of care and safety.
Breaches of these basic standards could result in heavy fines.
The new laws are set to come into effect by 1 July 2025 – two years later than when the Royal Commission recommended.
Paying for care
Most older Australians have two accommodation options: staying at home or moving into residential care.
The Government’s new laws include a $4.3 billion ‘Support at Home’ package, to go towards in-home care so more people can continue living independently.
This will include some fully funded clinical care services at home, including essentials like nursing and occupational therapy.
The package includes two other support categories, to be partially funded by the Government: ‘Independence’ services (showering, taking medication) and ‘Everyday Living’ (gardening, shopping).
Wealthier individuals will pay more for some services in these two categories, compared to those with lower savings and income.
From 1 July, this will be determined by financial means-testing. The test will consider a person’s property and asset ownership, care needs, financial status and if they’re receiving welfare payments.
Government remarks
Aged Care Minister Anika Wells said the reforms are aimed at supporting Australians “to stay in the homes and communities they love” for longer.
She said the ‘Support at Home’ measure will help 1.4 million people achieve this.
Prime Minister Anthony Albanese described the reforms as “once-in-a-generation”, saying it’ll help the sector become “stronger” and “sustainable” in the future.
Opposition
The Coalition will vote in favour of the Government’s bill after negotiating an amendment that means older Australians already receiving home care won’t pay any extra.
Additionally, Shadow Aged Care Minister Anne Ruston said the Opposition had “fought for dignity and clarity for older Australians and future generations”.
The measures will come into effect next year. While the Government has flagged it has the support to pass the legislation, the bill will still need to face a Senate inquiry.
Response
The Aged and Community Care Providers Association welcomed what it called “historic reforms”.
CEO Tom Symondson also called on the Government and Opposition to move quickly and pass the legislation.
“We will need at least ten thousand new beds to be opened per year for the next two decades to keep up with demand, and today we are closing more than we’re opening.
“We need investment to turn the situation around, and this legislation will enable that.”
