Now or Never? Aged Care Act details threaten to derail reform

There are frustrations over the latest delays to the Aged Care Act, although some leaders within the industry want to reinforce the importance of not rushing any decisions because of just how important the aged care reforms are.

The Coalition party has backtracked on its informal support of the new Aged Care Act after claiming it found unexpected new provisions in an updated document it received last week. 

Publicised issues include a ‘voice for workers’ where a union representative would be in every aged care workplace, while the Coalition has also raised concerns over the definition of wealthier Australians under the user pays more model. 

Sky News Political Editor Andrew Clennell said any self-funded retiree ineligible for the Age Pension would pay more for their non-direct care.

However, ABC is also reporting that the Coalition is worried about other “surprise new inclusions” despite Prime Minister Anthony Albanese claiming all issues have been discussed in detail.

“We are seeking clarification from the government on the details. This is the kind of detail that older Australians and their families deserve to know,” Shadow Minister for Aged Care Anne Ruston said. 

Appearing on Sunrise this week, ACCPA CEO Tom Symondson said the sector cannot afford further delays as it continues to lose $1 billion per year.

“We’re closing more beds than we’re opening even though the ageing population needs us to open another 10,000 a year. People are waiting a year for their home care in which time they can either end up in hospital or in residential care far sooner than they should,” Mr Symondson said.

“We just need politicians to get this done. We cannot understand why they haven’t to this point.”

Craig Gear, CEO of the Older Persons Advocacy Network (OPAN) said the window of opportunity is closing for the introduction of the new Act, and calls for politicians to stop dithering on older people’s rights must be listened to.

“I believe the proposed legislation and accompanying funding model have the potential to enhance quality standards, increase protections for older people, and create a financially sustainable and more stable aged care system for generations to come,” Mr Gear said.

“I also believe that further reform to the aged care system can’t happen without it. For the new Act to commence, as scheduled, on 1 July 2025, the Australian Government and Opposition must urgently come to an agreement.”

With the legislation glaringly absent from Parliament this week, there will only be three sitting days to come in October, with November the last opportunity for anything to be approved in 2024. Although the opposition supports a new Act, a looming election in 2025 could always threaten to delay any progress.

Mr Symondson indicated that if the reform did not pass this week, it could ultimately ruin many providers in the sector. 

“Everybody close to this negotiation will know that will just kill the reform. There will be no aged care reform until after the election and then politicians are going to have to explain to older Australians why they did nothing when they knew the system was on its knees,” Mr Symondson added.

Some leaders are calling for a balanced approach, however, with Retirement Living Council Executive Director Daniel Gannon cautious about rushing any reform if it still results in a bad outcome.

“It’s frankly too important to get this piece of legislation wrong. If additional time is required to ensure the aged care system is future-proofed and can meet the increasing demand from a rapidly ageing population, then pump the brakes,” he said.

“Successive governments have invested billions of taxpayer dollars to prop-up a system that is broken. What we have before us is an opportunity to transform a broken system, rather than renovating what we’ve already got.”