Aged care bill is through

Addressing parliament on Monday, Minister for Aged Care Anika Wells has celebrated the passing Aged Care Bill 2024 to make the new Aged Care Act law.

It means a new Aged Care Act will start from 1 July 2025, bringing with it a new regulatory model, strengthened Aged Care Quality Standards and a Statement of Rights for older people.

A new rights-based Aged Care Act was the first recommendation of the Royal Commission into Aged Care Safety and Quality. Ms Wells said passing the bill implements this key recommendation along with 57 others. 

“Today marks the passage of the most impactful aged care reform in 30 years. Today, our rights based aged care bill passed the parliament putting older people and not providers at the centre of aged care,” she told the house.

“The new Support at Home program will support all of us to live independently in our own homes for as long as possible as we age. The aged care system will be fair and financially sustainable, with those who can afford it making contributions towards the cost of their own care.

“The aged care system, the older people, will be cared for by skilled workers who are properly respected and fairly paid. This bill puts high quality, safe and compassionate care and services first,” she said.

“It implements a system of caring for older people living with dementia that incorporates contemporary, evidence-based care, and it delivers our election commitments of better, more appetising and more nutritious food, underscored by new food standards.”

The bill was introduced into parliament on 12 September and referred to a senate inquiry. After a national tour the committee recommended it be passed on 4 November. After some debate last week, the Senate passed it on Thursday evening with amendments.

Ms Wells committed amendments from the Opposition and Senator Pocock made during the Senate debate, as well as those from the government.

“The government’s amendments are designed to address key concerns that were raised by the aged care sector, older people and unions during the community affairs inquiry,” she told the house.

She said they include:

• a number of key definitions and concepts in response to stakeholder feedback
• to make key changes to the enforceability of the statement of rights and the corresponding condition of registration,
• to implement the recommendation that a review of accommodation pricing be brought forward to report to 1 July 2026, and included in the bill,
• to mandate financial hardship as a circumstance for the fee reduction supplement,
• to remove decision making supporters and streamline the strengthened safeguards in place and supported decision-making framework,
• to sunset the immunity provision for restrictive practices,
• make minor policy and technical corrections to the bill.

“I thank members and senators, and especially Senator Anne Ruston, who worked with the government on this reform,” said Ms Wells.

Peaks welcome new Aged Care Act

The monumental occasion has been welcomed by aged care stakeholders including provider peak body Aged and Community Care Providers Association.

“This truly is an historic moment in Australia’s aged care reform journey,” said ACCPA chief executive officer Tom Symondson.

“Our elected politicians should be congratulated on reaching rare bipartisan support for these landmark reforms.”

Catholic Health Australia – which represents catholic providers of aged care – said the passage of the bill provided a footing for an improved and more sustainable aged care system.

“We welcome this seminal reform which will help deliver quality and sustainable aged care for all Australians, whether they live in a city, regional town or rural area,” said Laura Haylen, director of aged care policy at Catholic Health Australia.

“Aged care providers can now move to a sustainable footing and start to look at expanding operations where there is unmet need, particularly among vulnerable and marginalised communities.”

Celebrations aside, both peak bodies raised concerns about the transition times and support to implement the reforms.

As did consumer peak COTA Australia.

Acting chief executive Corey Irlam said despite taking a long time to arrive, the country finally has a new Act that puts the needs of older people ahead of those of providers.

“With the core foundations now in place we will continue to engage in conversations about the transition and the details of subordinate legislation to ensure the new Aged Care Act delivers fair, equitable, affordable, transparent and quality aged care for older people,” Mr Irlam said.

“This isn’t the finish line – it’s the start of the next crucial phase in the push to protect the rights of older people.”

In a statement announcing the passing of the bill on Monday afternoon, Ms Wells noted the recently established transition taskforce and called on all stakeholders to play their part.

“Now that we have followed through on our commitment to deliver a new Aged Care Act, it’s incumbent on all of us to live up to this promise and deliver meaningful change across aged care.

“We have established the [Aged Care] Transition Taskforce to work with the sector in preparation for July 1 so we can all make the necessary changes to deliver better aged care.”

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