Aged Care Act delay continues with no formal bipartisan support

After months of negotiation the Federal Government and Coalition reached an in-principle agreement in negotiations regarding the new Aged Care Act.

However, the opposition has not passed on its formal notice of support meaning the bill remains absent from parliament. This means the new Aged Care Act will not be presented to parliament until at least the second week of September.

The Minister for Aged Care, Anika Wells, said there have been constructive negotiations with the opposition in pursuit of an aligned purpose to improve aged care.

“It has been clear all along: there must be bipartisanship. We can’t have this change from government to government. The sector won’t invest if they’re not confident about the rules. The finances and care options of older Australians are just too important,” Minister Wells said.

“We’ve had long constructive negotiations with the opposition, but haven’t yet secured a formal agreement to allow us to introduce legislation.”

Last week saw confirmation that the Government dropped criminal penalties against aged care directors for breaches of standards, a major sticking point for the Coalition. They also ceded ground on raising the lifetime cap contribution with a lower than planned cap to be included.

Meanwhile, people currently on home care waiting lists will also be exempt from the new user pays fee structure. Under the initial Aged Care Act bill, only existing aged care users would be exempt.

“We’ve made it really clear we’ve been working methodically to make sure that we can deliver a higher standard of care and better services in a more sustainable way,” Treasurer Jim Chalmers added.

“We’ve been engaged I think in meaningful discussions and negotiations across the parliament, and we hope to be able to say more about that soon.

“Spending on aged care will continue to grow even if we are able to implement the sorts of reforms recommended to us by the Aged Care Taskforce.”

There are fears this latest hurdle – the lack of formal notice from the opposition – could further delay the Act’s introduction to parliament.

The Aged and Community Care Providers Association (ACCPA) expressed its disappointment that bipartisan support had not yet been achieved, urging all parties to find common ground when parliament resumes in September.

“If the new Act isn’t introduced immediately after parliament resumes in a fortnight, the chances of it passing before the next election are near zero,” ACCPA CEO Tom Symondson said.

“Months of political negotiations, consultations with everyday Australians, consumer groups, economists, unions, providers and experts will have come to naught if the Government and the Coalition fail to find a way forward. This is beyond urgent.

“Whatever the hold up, this historic opportunity will be lost and older Australians will be left in limbo – unless we act quickly. This kind of reform has been attempted many times before, and every time, it has failed because of a lack of bipartisanship – we cannot let this be a repeat of the past.”

Mr Symondson said ACCPA has high hopes these reforms will not only save aged care from financial collapse, but allow it to grow. However, there will be no opportunity for growth it the legislation isn’t introduced, he warned.

“We will need hundreds of thousands of additional beds in the coming decades to meet demand from Australia’s ageing population. We should be building thousands each year not the few hundred we are currently managing due to a lack of financial viability,” he added.

“Australia’s aged care system can and should be the envy of the world, but we need help to achieve that. All Australians are relying on us to succeed.

“Our message to our elected politicians is simple. The time for politics is well and truly over. This is too important. Quite simply, it’s now or never.”