Senate Standing Committee recommends Aged Care Bill be passed

After speaking to 153 witnesses at nine public hearings across Australia and dissecting 189 submissions related to the Aged Care Bill, the Community Affairs Legislation Committee has handed down one sole recommendation that the Bill be passed.

However, while the committee majority supported the Bill, Coalition party representatives were not as agreeable with the final report including 32 recommendations from the opposition. 

The committee said it received evidence that reflected a range of views with most acknowledging the urgency to implement new legislation to reform the aged care system. Key concerns involved the sector’s financial stability, enforcement and protections, aged care rules and the transition period to the new Aged Care Act. 

While fears were raised about the potential financial cost of transitioning to the new aged care system and the potential impact of service and fee caps in the Support at Home Space, the committee was not deterred in providing its final recommendation.

“The committee is of the view that the bill meaningfully responds to the findings of the Aged Care Royal Commission, and acknowledges that the majority of witnesses, including advocates, providers and aged care experts, strongly support the bill’s passage. Many explicitly stated that the bill must be passed by the end of the year to ensure a timely transition process,” its final statement read.

“The committee strongly encourages the government to consider the issues raised by witnesses and submitters detailed above in any further development of the bill and the Aged Care Rules, but, notwithstanding this, believes that the bill must be passed urgently. 

“Older Australians and their families simply cannot wait any longer for a better and safer system. The bill will ensure that older people are placed at the centre of aged care for current and future generations to come.”

Financial concerns

Many of the issues raised by witnesses at public hearings relate to financial implications for older people. Some debated that a levy would still be beneficial for covering the costs of aged care, while the main point of contention was the cost of transition.

In response to provider concerns about transitioning to the new aged care system, the Department explained that it is developing an integrated readiness plan to provide support for the aged care sector and older Australians. Additional support is also likely to be available for providers in regional and rural markets.

Providers are worried about the impact of increased Refundable Accommodation Deposits (RAD) limits, however, plus their ability to retain 2% per annum of the RAD for five years.

“One of the comments that I got from some people who heard about the proposed retention of the RADs was: ‘Hold it. So I’m not going to have my money? You’re going to take my money off me?’ When they talk about the $300,000 RAD, they’re already concerned about having to pay $300,000, but potentially losing 10 per cent a year of that actually is of concern to some of our residents,” Eyre Peninsula Old Folks Home CEO Trevor Johnson said. 

Support at Home transition

The new Support at Home program will be a focal point for aged care in 2025. Its inclusions within the new Aged Care Act are therefore a top priority for many providers.

There were debates over categories and service lists while caps for domestic assistance were regularly mentioned. Recent documentation suggests cleaning assistance will be capped at 52 hours per year and gardening 18 hours. 

The Department responded by saying the caps are subject to consultation and feedback received already indicates they could change. The Department also touched on the care management fee cap which has been reduced from 20% to 10%.

Providers said this would result in reduced levels of care management services and it could be detrimental to higher-needs clients who unintentionally receive lower care levels. Regional providers were once again among the most concerned about the impact.

“The cost of delivering services in the regions is obviously a lot more than what it is in metropolitan cities … As a not-for-profit organisation, we are very conscious of not wanting to eat into people’s packages by charging them significant amounts for travel and mileage, so we absorb a fair bit of that,” Helping Hand CEO Chris Stewart said.

“We’re really hopeful that, in the IHACPA studies, the extensive costs of providing Support at Home services in regional areas are recognised and that services are appropriately funded… we are concerned that if that’s not done properly then the viability and sustainability of those programs are certainly at risk.”

The Department said the Government chose to reduce the care management cap and that by pooling all clients’ budgets providers can draw down on funding to remain flexible when allocating time and resources.

Coalition hurdles

While the committee itself only provided one recommendation, the 32 recommendations included by the Coalition suggest the Act being passed by the end of the year is no forgone conclusion.

“Coalition Senators remain committed to the passage of a new Aged Care Act that embeds a rights-based framework to ensure a world-class aged care system. However, Coalition Senators have concerns that the Bill contains several shortcomings that should be remedied for the Bill to deliver on its stated purposes and outcomes,” its statement read.

“Coalition Senators note that this Bill does not fulfil the Aged Care Royal Commission’s clear recommendation to establish a right to access care.2 This Bill fails to provide clear timelines and reporting mechanisms to track wait times from application and assessment, to receipt of care.”

The Coalition’s recommendations are wide-ranging, including:

• The System Governor be required to report quarterly on the current waitlist and wait times from application to service commencement
• Timeframes be released before the Bill is passed
• All relevant rules and legislation linked to the Bill are made available for public inquiry and review
• The Government will not penalise providers until the full transition to Support at Home is completed
• Clear definitions of terms and relevant metrics be included in primary legislation
• Supporter provisions are removed from the Bill to allow for additional consultation
• Greater flexibility in the use of care minutes
• Emphasis is placed on the additional value of services provided by external organisations when determining contracts and service prices

The Coalition’s final recommendation was for the Bill to be passed with amendment.

The full committee report can be viewed here.