Senate approval another milestone for the new Aged Care Bill

The aged care reform journey remains on track after the Senate approved the Aged Care Bill on Thursday evening, albeit with additional amendments. 

The decision is a major victory for the Australian Government which wanted the Bill passed before the end of the year so it could succeed in legislating it from July 1, 2025.

However, the decision came after the Greens launched a relatively last-minute opposition pitch while the Coalition was successful in having some of its amendments accepted. 

Key features of the new Aged Care Act

• Embedded rights-based approach built on a Statement of Rights that outlines the rights of older people in the aged care system
• Prioritised person-centred care through a range of avenues, including a supported decision-making model, new complaints management framework and increased support and funding for the aged care advocacy network
• New funding and financial models including a co-contribution fee structure that will see older people pay more for their care and a higher refundable accommodation deposit (RAD)
• Stronger obligations on service providers through a Code of Conduct, strengthened Aged Care Quality Standards and civil penalties for responsible persons

The Aged and Community Care Providers Association (ACCPA) labelled the Bill’s passing a ‘watershed moment for older Australians’ as Chief Executive Officer Tom Symondson congratulated parliament for achieving rare bipartisan support.

“The path to the new Act follows significant consultation with consumers, providers, unions, workers, accountants, economists, and members of parliament. Negotiations have been robust, but in good faith, with everyone putting the future of older Australians at the heart of reforms,” he said.

“We hope reforms under the new Act will bring sustainable financial security, so we can grow a sector that’s vibrant and meets the needs of Australia’s ageing population. 

“Australians want and deserve quality, safe and person-centred care, and these reforms will help us to deliver that. I am optimistic that this achievement will go some way to cultivating the trust and confidence of all Australians in what we hope will become a world-class aged care system.”

The Coalition had been the final hurdle facing the government but the Shadow Minister for Aged Care Anne Ruston had long said she never wanted to see the new Bill fail. Rather, she wanted to ensure it was passed with no major oversights. She said the Bill was ‘very important’ on Thursday.

“The choice and control and the power of how [recipients] receive aged care hopefully with the passage of this bill is going to be vested in the hands of older Australians,” she said. 

Manager of Government Business in the Senate Katy Gallagher thanked the Coalition for ‘many intense sessions of negotiation.’ 

“In this place, we pass laws that change the lives of individuals, and this will be one of those … [It will] improve the aged care system, no longer a system that’s described as one of neglect but one that’s person-centred, rights-based and provides new standards of care and choice for individuals who use it,” she said.

Elsewhere, the Greens voiced their frustration after Labor and the Coalition rejected its amendment to the Bill. 

Greens spokesperson on older people Penny Allman-Payne said the party did not feel the new Aged Care Act went far enough to support older people and they will continue to push for the phasing out of for-profit service providers. 

“Presented with a blueprint from the Royal Commission to reform a broken aged care system by putting the rights of older people at its heart, Labor has instead capitulated to the Coalition and the for-profit aged care industry with new laws that will bolster the bottom lines of providers at the expense of older Australians,” she said.

“Older people and advocates say that older people must have rights that are unequivocally clear and enforceable, and the Greens have long supported a shift to a rights-based framework.

“If greater reliance on a user-pays model is the answer, then we’re asking the wrong questions. Older people aren’t commodities. It should be an obligation of any moral society for the Government to guarantee high-quality care for all.

“The Greens will continue to push for a phasing out of for-profit providers and for an aged care system that puts the rights of older people first.”

Official details regarding the specific amendments are expected to be released ahead of the final parliament sitting week of 2024. 

The amended Bill requires one final seal of approval from the lower house next week before it can become law, with few expecting it to fail there.