The Senate Community Affairs Legislation Committee has recommended that the Aged Care Amendment (Ensuring Quality and Safety) Bill 2024 be passed, following extensive consultations and public hearings across Australia.
This major piece of legislation seeks to address long-standing issues in aged care, as highlighted by the 2021 Royal Commission. However, Coalition senators are calling for significant amendments to refine the bill’s implementation, responding to concerns raised by aged care providers and stakeholders.
The committee’s 159-page report, published today, is based on nine public hearings and 189 submissions received since September. While the committee broadly supported the bill and emphasised its urgent passage to reform the sector, Coalition senators raised reservations. They included 32 additional recommendations aimed at providing stronger support for providers and ensuring a smooth transition to the new Support at Home program, scheduled to launch in 2025.
One of the Coalition’s key recommendations is to review the Support at Home program’s start date. They argue that more time is needed for aged care facilities to adjust to the new system, pointing to a lack of clarity around the subordinate legislation and transitional plans. The Coalition is also advocating for a clear timeline and a phased rollout strategy, along with greater flexibility in care minutes to allow for individualized care.
The report highlighted concerns from witnesses about the financial strain the bill could place on aged care providers, particularly those in rural and regional areas. Some providers worry that caps on services like cleaning and gardening within the Support at Home program might compromise care quality. The Department of Health has acknowledged this feedback, noting that service caps could be revised and that care management fee limits have recently been reduced.
A notable provision in the bill addresses Refundable Accommodation Deposits (RADs), permitting an increase of up to $750,000 without requiring providers to seek exemptions. The legislation also allows providers to retain 2% per year of the RAD amount (deducted monthly), capped at five years. On December 5, Inside Ageing, in association with Pride Aged Living, will host a webinar on RAD pricing strategies.
The Coalition has further recommended that the System Governor report quarterly on aged care waitlists and wait times to enhance transparency. They also suggest delaying penalties on providers until the full transition to the new system is completed, protecting financially vulnerable facilities.
The Australian Greens, in a dissenting report, echoed some of the Coalition’s concerns, urging the government to address stakeholder feedback. ACT Senator David Pocock expressed support for the bill’s goals but called for additional protections, including clearer guidelines on civil penalties and hardship provisions.
As the bill heads to the Senate for further debate, the government is pushing to pass the legislation by the end of the year.
