Relief or regret? Aged Care Act delay divides opinions

Just as the aged care sector seemed to be on the same page, fully resigned to the challenges and opportunities associated with the 1 July implementation of the new Aged Care Act, the government threw a curveball.

The Department of Health, Disability and Ageing announced on 4 June — just 27 days before the milestone date — that the new Act and Support at Home program will be delayed until 1 November, 2025.

The additional four months offers providers more time to ready their staff, systems and policies, while also giving older people, their carers and support networks more time to understand how the changes will affect them.

However, like all things, the news has resulted in some mixed feelings about what it all means for the sector. You can read more about the government’s announcement to delay the Aged Care Act here, alongside a statement from Ageing Australia.

An embarrassing backflip

Shadow Health and Aged Care Minister Anne Ruston was quick to criticise the decision as the opposition labelled it an ‘embarrassing backflip’. 

Ms Ruston said the decision only occurred because the government refused to listen to concerns raised by the sector. 

“Today’s embarrassing backflip by the Albanese Labor government on the delivery of their aged care reforms is a clear admission of failure — and one that could have been avoided,” Ms Ruston said.

“This refusal has created months of stress and uncertainty for providers and older Australians, only for the government to now back down with little more than three weeks to go until their deadline.”

Sector leaders welcome the news…

While the opposition may be critical of the backflip, few sector leaders have shared those criticisms, with most happy to see the Aged Care Act pushed back by four months. 

Anglicare Sydney CEO, Simon Miller, said the revised timeline recognises the scale of the changes ahead and will help ensure a smoother transition. 

“Taking the time to get this right will lead to stronger outcomes for everyone, especially older Australians who rely on quality care and support,” Mr Miller said. 

He added that it also shows the government is listening to the sector.

Others across the sector shared similar sentiments, with the decision labelled a ‘super sensible decision’, ‘a relief’, ‘amazing’, and ‘fantastic news’.

Silverchain Group Chief Executive Dale Fisher AM said reforms of this magnitude should not be rushed at the expense of those impacted.

“The most important element of these reforms is the impact on older Australians. The sector must have all the information before implementation in order to be able to reassure older people about these changes,” Ms Fisher said.

She said that while Silverchain has been focused on preparing clients, without key subordinate legislation and grandfathering details it has been hard to reassure them on how the change affects them.

“We strongly support these reforms, but this postponement was urgently needed to avoid chaos and confusion for older people, their carers and families, and the dedicated aged care workers who deliver high quality care.

“Common sense has prevailed. Silverchain has advocated for this, calling for practical and realistic timeframes to implement these reforms effectively,” she added.

Thrive Aged Care Director Kathy Kirby said this would be an opportunity for providers to pause, take a breath, and plan so ‘we can do things as best we can’.

“These changes are coming — make no mistake — but now you have the opportunity to really embed all that you have been working so hard on. To focus on those areas that you haven’t quite got your head around, “ she shared.

“To make sure you aren’t doing a tick a box approach. To get things right. 

“It also gives you time to upskill your team — get more people onboard to help you with embedding these changes — because as I said in my previous post this week — you cannot do this alone. But people need to understand the WHY and be taught the HOW.”

Elsewhere, Blue Bike Principal Consultant Luke Benson said it was ‘courageous’ for the government to step back from the cliff and support both the sector and participants. 

“Now we have to make sure the next few months aren’t just like adding an extra lane to the freeway, where the benefit is absorbed immediately….there’s still so much work to do, but I’m so glad the anxiety can be taken down a few levels for all the awesome people working so hard to get ready,” he added. 

… While others express their concerns

Of course, it’s not all good news. The decision to delay the Aged Care Act is a sign that providers were not going to be ready for the most part. So although it is great news that more time is being afforded to prepare for 1 November, it’s not only the providers who need the time.

Envigor Director Nick Loudon called the decision a ‘debacle’ as he said this on LinkedIn, “Read the Minister’s letter carefully. Tries to imply that the delay is for the benefit and at the request of providers. However the Minister also states – “It will also give us more time to finalise key operational and digital processes, and for Parliament to consider supporting legislation that will enable the new Act to operate effectively”. – because they/department/government are not prepared.”

Adjunct Professor Kathy Eagar AM was another to state the delay is because the department is unprepared, not providers. 

Similar comments have indicated that systems are not ready purely because the Act and associated elements have not been finalised, with providers working tirelessly to be ready. 

Others have suggested the delay could negatively impact momentum, with potential amendments putting everything at risk of trying to implement a system that is still not finalised.

Meanwhile, the timing — November 1 (a Saturday) — isn’t necessarily the best. With Christmas and the New Year break just seven weeks later, providers will need to be prepared or risk lagging behind at one of the busiest times of the year. 

Then there are the unanswered questions. As Bolton Clarke Executive General Manager Tim Hicks asked, ‘What does the delay of the Act mean for 80,000 packages that were going to be released?’. 

The announcement also failed to touch on the Strengthened Quality Standards, which were meant to come into effect with the Act, or the expanded Mandatory National Quality Indicators. 

‘Reluctant’ support from peak body

Over at the Older Persons Advocacy Network (OPAN), there was some reluctance when revealing its support for the delay.

CEO Craig Gear said it was the right decision, overall, but the peak body would have preferred to see the Act implemented as promised on 1 July because older people cannot get the care they need without it.

“However, over the past weeks, it has become increasingly apparent that, while the macro design of the reform is solid, older people don’t have the necessary information to make informed choices at an individual level, particularly around the new Support at Home program,” he stated.

“We are also concerned that the appropriate systems aren’t yet in place to ensure continuity of care and services for older people during the transition.

“It is for these reasons, OPAN reluctantly supports the delay announced by the Minister for Health and Ageing and the Minister for Disability and the NDIS Mark Butler and the Minister for Aged Care and Seniors Sam Rae today,” Mr Gear said.

Mr Gear urged the government to still release a minimum of 20,000 additional home care packages during the four-month delay period, while the extra time should still be used to fast-track the rights-based legislation.

“This is not the time to take our foot off the pedal. Older people have been waiting years for an Act that enshrines their rights in legislation. This delay risks pushing out the timeline for them to receive more timely and rights focused aged care,” Mr Gear said

“We need to use this four-month window to urgently address outstanding issues, which include accessible hardship provisions for those with limited means, and roadblocks in the single assessment system which are exacerbating waiting times for in-home aged care.

“Older people must also be provided with the level of detail they need to make informed choices and give their informed consent.”