Will the government’s caretaker mode impact aged care reform?

Caretaker conventions are now in place for the Australian Government after Prime Minister Anthony Albanese formally announced that the 2025 federal election will take place on Saturday, May 3.

The decision comes at a critical time for the aged care sector as it marches toward the July 1 commencement date of the new Aged Care Act. Yet with at least the full month of April to pass by under caretaker conventions, will the aged care reform journey move to a standstill?

What are the caretaker conventions?

The Australian Government adheres to established practices known as caretaker conventions during the period preceding a federal election. These conventions aim to ensure that the government avoids making significant decisions that could bind an incoming administration or limit its freedom to govern. 

The Department of the Prime Minister and Cabinet provides detailed guidance on these conventions.

The caretaker period commences with the dissolution of the House of Representatives and continues until the election results are clear or, in the event of a change in government, until the new administration is sworn in. ​

In the case of a hung parliament, that could extend the caretaker period by four or five weeks. 

As per the Department of the Prime Minister and Cabinet, “The conventions are not legally binding, nor hard and fast rules. Their application in individual cases requires judgment and common sense.”

With the caretaker period already underway, the government is expected to: 

• Refrain from making major policy decisions that could bind a future government, including new grant schemes
• Avoid significant appointments or dismissals
• Defer major contracts or undertakings unless they are urgent and after consulting the opposition

The Australian Public Service is also expected to remain impartial while advising the government. 

Additionally, ministers are expected to limit website updates to factual or existing policy content, avoiding political statements or election material. Decisions made before the caretaker period can be announced during it, but new initiatives are typically held back.

What does this mean for aged care?

There are two key areas for aged care that could be impacted by the government’s caretaker mode: the new Aged Care Act and the incoming Support at Home program. In both cases, information releases and public consultation are still ongoing.

Hello Leaders contacted the Department of Health and Aged Care to find out how the caretaker conventions could impact progress. A spokesperson for the department shared the following response:

“The department is progressing material to support sector readiness for commencement of the Aged Care Act 2024 on 1 July 2025 in accordance with caretaker conventions, under which the business of government and ordinary matters of administration continues. 

“This includes progressing the development of the Aged Care Rules and making updates to key materials to support sector readiness for 1 July 2025, within the bounds of caretaker conventions.

“The department is committed to ensuring the continued operation of the aged care system on commencement of the Act on 1 July 2025.”

It’s highly unlikely that any major changes will occur until the incoming government is confirmed. Legislation, regulations and ordinances are rarely approved or announced during a caretaker period except in exceptional circumstances. 

If the Department of Health and Aged Care was required to make any decisions or changes that might fall outside of caretaker conventions, it would be Mr Albanese or the Governor-General Sam Mostyn AC who has the final say.

“At the public service level the Department of the Prime Minister and Cabinet provides ultimate guidance on how those conventions operate. If public servants breach the code of conduct or the requirements of the Public Service Act then they can face disciplinary action,” explained Professor Anne Twomey AO via the Constitutional Clarion.

“When it comes to ministers it’s supposed to be the Prime Minister who imposes the conventions and makes sure that there’s compliance with them. This doesn’t tend to work when the desire for political advantage overcomes the desire for propriety. 

“If the Governor-General is needed to officially approve an action or sign a document, he or she may defer doing so until after the election.”

With this in mind, providers should expect to continue receiving information and guidance related to aged care reform over the coming weeks. A pause on public consultation and amendments to legislation is likely unless the operation of the new Act or Support at Home is under threat. 

Click here to read the Guidance on Caretaker Conventions in full.