Aged Care Advisory Council concerned penalties could impact workforce supply

The National Aged Care Advisory Council has released its most recent communiqué from its March meeting, sharing its concerns over how penalties in the new Aged Care Act could impact workforce supply.

Held on March 25, the meeting occurred soon after the Aged Care Taskforce released its recommendations. The 18-member Council welcomed the release of the Taskforce’s final report, stating that they were supportive of recommendations to simplify the funding system and reform consumer co-contributions.

However, they want to see more thorough exploration of key recommendations such as the scope of clinical care in home care settings and accommodation funding reform. As part of its recommendations, the Taskforce called for the long-term removal of refundable accommodation deposits (RADs). 

“There is support for the Taskforce’s focus on Government meeting the costs of clinical care; however, clarity about scope of clinical care in Support at Home will need to be thought through,” the communiqué detailed.

“Council is keen to see more detail about final design of the measure, including details of contribution costs to ensure there is equity for older people. Council reported mixed views from the sector regarding recommendations relating to reforming accommodation funding.”

The New Aged Care Act

With Anika Wells, the Minister for Health and Aged Care, in attendance the Council congratulated her and the Department for the breadth of consultation undertaken on the draft of the new Aged Care Act.

Positive feedback regarding the Act included the recognition and support of the person-centred objectives, the rights-based framework and the inclusion of supported decision-making.

While the Act had not yet been delayed, there were some concerns from providers and the workforce over the penalties listed in the exposure draft. 

“Many older people have expressed the need for accountability and penalties where there has been abuse and neglect resulting in poor outcomes for individual clients and residents. Feedback received from providers and the workforce, however, indicates that if penalties in the exposure draft remain as currently written, there may be a risk to workforce supply,” they said.

The council intended to revisit the matter on April 11 at its next meeting.

Additionally, they suggested the Complaints Commissioner functions be separated from the Act “to provide specific functions and statutory authority to an independently appointed Complaints Commissioner, answerable only to the Minister and Parliament.”

Workforce challenges

Concerned over the potential detrimental effects of stronger penalties for the aged care workforce, the Council also discussed the current challenges of workforce retention. Obstacles such as workers’ access to housing, childcare, and other social supports in thin markets were mentioned.

On a positive note, they said the recent 15% wage increase has reduced turnover rates, while workers who have time to focus on care rather than administration tasks are more likely to remain in aged care. 

The importance of data to assist in accurate workforce projections was also recognised, as well as the benefits of learning and development for staff and access to mentors and role models.

Support at Home 

Lastly, feedback was provided on the operation of the current Short-Term Restorative Care (STRC) Program. They spoke of rapid intervention’s impact on achieving positive outcomes, such as diversion from hospital admission, including for people with cognitive decline.

“In doing so, timely and effective restorative care has the capacity to reduce overall health system costs,” the communiqué read. 

With the STRC to be included in Support at Home from July 1 2025, they would also like to see more clarification around terminology, objectives and features of home care programs. 

“It was noted there is some confusion about the term ‘restorative care’ – effective restorative care needs to include rehabilitation and reablement. Different objectives and features of the STRC Program and the Transition Care Program need to be clearly articulated, to ensure aspects of avoiding hospital care and receiving post-hospital care are all covered,” the communiqué added.