More than 830,000 older Australians face the risk of losing access to vital community services following the government’s last-minute decision to require new service agreements for every recipient under the Commonwealth Home Support Program (CHSP). Industry leaders say this move makes a 1 July transition to the new Aged Care Act “impossible.”
The new requirement, announced with just months to go before the legislation takes effect, demands that all CHSP providers enter into formal contracts with their clients — many for the first time. But with rules for the agreements still not finalised, providers say they’ve been handed an unachievable task.
“Being ready for the new Act was already near impossible, but this new decision crosses the line,” said Ageing Australia CEO Tom Symondson. “The goal posts have been moved. This requirement has come out of nowhere, was called for by nobody, and there has been no consultation.”
Currently, CHSP providers are not required to hold formal agreements with recipients — many of whom receive only small amounts of assistance such as transport to medical appointments or meal deliveries. The sector is warning that forcing providers to negotiate and execute agreements with over 800,000 recipients in just over two months is not only impractical but could cause major disruptions in care.
“There will be widespread confusion for community care recipients, their families and providers alike. There’s a very real risk that hundreds of thousands of older people will miss out on the vital services they require.”
Tom Symondson
Aged care providers are already grappling with an enormous workload as they prepare for sweeping legislative reforms under the new Aged Care Act, set to begin 1 July. These include overhauling systems, replacing ICT infrastructure, and updating operations to meet new compliance and reporting obligations. The lack of finalised guidance on the Act has made it difficult for many organisations to progress with implementation — and this latest change, they say, may be a tipping point.
“If the Government insists on doing this — which we don’t think is necessary — it needs to give the sector a transition timeline of at least 12 months,” Mr Symondson added. “There should also be exemptions for small providers, particularly those in rural areas with grants as small as $10,000.”
The new service agreement rule would apply universally — even to the most low-touch clients, many of whom have never had to navigate formal contracts with service providers. Sector leaders fear the added bureaucracy could cause some older Australians to disengage entirely, with damaging consequences for health and independence.
“The interaction with the system is very small for a large number of older people receiving services under the CHSP,” said Mr Symondson. “But it’s critical in keeping them living independently. Additional red tape and formal agreements will likely make many avoid services altogether — including those most in need.”
With just weeks to go, and vital implementation details still outstanding, industry calls for urgent reconsideration of the new requirement are growing louder.
