All eyes on Aged Care Bill 2024

Bipartisan agreement and the subsequent tabling of Aged Care Bill 2024 provides hope for a sustainable future and the confidence for the aged care sector to plan for it, say aged care providers.

As reported on Thursday, the government introduced legislation into Parliament yesterday and outlined the Support at Home after securing support from the Opposition on the new Aged Care Act.

Minister for Aged Care Anika Wells called it “a need-based arrangement that makes financial sense, a system that helps more homes have more services for older Australians… [that] will create better and safer care.”

The legislation aims to improve the quality and viability of the aged care. It also aims to protect the rights of older Australians such as through a statement of rights, and new duties and penalties to hold aged care providers and leaders accountable, and empower them including via supported decision-making.

Under the proposal, new entrants to the system with means will pay more towards everyday living and independence support in home care – which includes meals, showering and gardening – and non-clinical care and accommodation in residential aged care. Existing aged care recipients will not pay more than they are under a no-worse-off measure.

Despite the bipartisan support, Shadow Minister for Aged Care Anne Ruston said she wanted to make it clear this was Labor’s package of reforms and not a co-designed process.

She said the Coalition worked tirelessly to ensure the reforms did not unreasonably disadvantage Australians who have saved for their retirement.

“Australians who have worked hard their whole life must be dealt a fair deal. That is why we pushed the government to include grandfathering arrangements, lifetime caps, and a lower taper rate,” Ms Ruston said.

“We have fought for additional funding for aged care providers in the bush, who are struggling to remain open under the Albanese Government, and we have squashed Labor’s outrageous attempt to force unionism into every aged care home.”

Across residential and home care, the government will pay 100 per cent of clinical care costs as recommended in the Aged Care Taskforce report – which government also released its response to yesterday.

A lifetime contribution cap of $130,000 across home and residential care applies to an individual’s non-clinical care costs regardless of their means or duration of care. Every Support at Home contribution counts towards the cap.

In residential aged care, accommodation reform and resident contributions will ensure the growth and viability of the sector, the government said on Thursday.

Changes include replacing the means-tested care fee with a non-clinical care contribution, increasing the maximum room price by $200,000 to $750,000 and allowing providers to retain 2 per cent of each new residential accommodation deposit – RAD – each year for up to five years. 

Providers celebrate action on reform

The announcements were quickly and universally welcomed by provider and consumer peak bodies yesterday. Individual providers have also welcomed the bipartisan support and announcements.

This includes Victorian provider Benetas, whose chief executive officer Sandra Hills said it placed the sector on a path towards desperately needed reform.

“We commend the Federal Government and Opposition for showing their commitment to the aged care industry by reaching agreement on a range reforms that will unlock crucial funding for the sector,” said Ms Hills.

“As our sector grapples with increased demand for services, against a backdrop of an ageing population with more complex health needs than ever before, the agreement provides hope for aged care providers and older Australians.

“These reforms not only provide crucial and sustainable financial security but also confidence for the sector to invest in new programs and care models that have the ability to deliver the quality outcomes that older Australians expect and deserve.”

Bolton Clarke Group CEO Stephen Muggleton also celebrated the news.

“We welcome news today of bipartisan support for historic aged care reform,” Mr Muggleton said.

“This announcement and progression of the new Aged Care Act through Parliament will provide much-needed certainty, supporting the sector to grow and meet the needs of a booming ageing population.”

The CEO of NSW and ACT provider Warrigal, Jenni Hutchins, called the bill’s introduction “a welcome relief” for older people and their families and staff and providers across the sector.

“While we understand that co-contributions are a concern for older people who have not yet entered care, it’s important to clarify that residents will be asked to contribute towards their accommodation and daily living expenses, ensuring that care facilities remain sustainable for the future,” Ms Hutchins said.

Next up is looking at the finer details within the Act as they are released, she said.

“We hope that within these details, we see a person-centred piece of legislation that focuses on the rights of all older Australians, not only in this generation but for generations to come.” 

The CEO of West Australian provider Juniper, Russell Bricknell, said the aged care sector has been waiting for years for a new Aged Care Act so it can move forward with certainty.

“The tabling of the new Aged Care Act opens the way for much needed reform,” Mr Bricknell said. “It is critical that the funding model is right to allow providers like Juniper to invest in refurbishment of existing assets and new builds that are viable, sustainable and meet customer needs both in metropolitan and regional areas.”

He hopes the government moves quickly on providing more home care packages and that larger means-tested contributions for both residential and home care are appropriately targeted.

“To achieve equity and fairness within our aged care system, the model needs to be those who can afford to pay more are encouraged to do so. By distributing costs in accordance with one’s ability to pay, we can ensure those who are more financially capable contribute proportionately, alleviating the burden on those who have limited means.”

The chief executive of regional provider McLean Care, Sue Thomson, said the new legislation is an opportunity to strive for better quality.

“The new laws represent a milestone for our industry and the opportunity to collectively enhance the standard of aged care across Australia and deliver the services that our aged care residents deserve,” Ms Thomson said.

“Numerous reviews have highlighted the challenges facing the aged care sector and the industry must treat this legislation as a line in the sand. We must do better to ensure all Australians can be assured of high quality, dignified care later in life.”

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