Government gives providers extra time to prepare for new Aged Care Act

Following advice from the sector, the Albanese government will recommend the Governor-General defer the commencement of the new Aged Care Act by four months.

News broke yesterday that the Department of Health and Aged Care (DoHAC) will allow more time for providers to prepare for the extensive reforms by setting a new deadline of November 1 2025.

In a statement, DoHAC said it wants to “successfully deliver these reforms in the right way.”

“The Albanese Government has made no secret of the fact that this is an incredibly ambitious reform,” Minister for Health and Ageing Mark Butler said.
 
“These are once-in-a-generation reforms, which put older Australians at the centre of aged care.
 
“We want to make sure that all operational, digital and legislative pieces are in place before the rollout starts.
 
“This brief deferral allows providers to train their staff and have conversations with their clients, get their IT systems ready and prepare operations for an orderly transition.”

Getting it right

Newly appointed Minister for Aged Care and Seniors Sam Rae said he has been spending his first weeks in government “listening to older Australians and stakeholders.”

“This is about ensuring the new Aged Care Act and Support at Home is ready for older Australians and their families,” Minister Rae said.

“We have already achieved so much in partnership with older people, providers, workers and the sector.”

“This brief deferral will allow more time to bed down key changes to reduce aged care assessment times, in line with community expectations.

“We will continue to work hand-in-hand with older Australians, the sector and the Taskforce to make sure the benefits of these once-in-a-generation reforms are realised.”

While the aged care sector has been largely welcoming of the news, the Coalition has said that Labor’s decision to delay the reform is a “clear admission of failure” that “could have been avoided” if the government had listened to the sector about the time it would take to implement the reforms.

The Coalition went on to say that pushing the rollout back to November 1 is the “right decision” for older Australians, aged care providers and home care operators, but insisted the “embarrassing backflip” need not have happened if Labor had voted in favour of a 12-month transition period proposed by the Opposition last year.

Treasurer Jim Chalmers on Wednesday said the delay was “modest,” but confirmed it would result in a $900 million loss of revenue over the next four years. This is due to the new Act’s requirements for wealthier older Australians to pay more for their non-clinical care not kicking in for four months.

Coalition spokeswoman Anne Ruston, who was reappointed to the health and aged care portfolio during the recent shadow ministry shake-up, said the Albanese government was “warned” its original timeline was unachievable.

“We put forward a responsible, measured amendment to ensure that their reforms could be rolled out safely and effectively, and Labor opposed it,” Senator Ruston said.

“The aged care sector has been crying out that the 1 July deadline was not deliverable without causing serious negative consequences.

“Why has it taken the Government until five minutes to midnight to alleviate the stress and uncertainty they have inflicted?

“It is a sad indictment that the essential services relied on by older Australians have paid the price for this government’s incompetence.”

Sam Rae addresses providers

Minister Rae has used this opportunity to address the aged care sector for the first time since being appointed Minister of Aged Care and Seniors, penning an open letter to providers and older Australians.

The Minister thanked the country’s older generations for their patience while the government worked to deliver a smoother transition to the new Act and Support at Home program.

“The new Act is changing aged care laws to put the rights of older people first. It includes a Statement of Rights and a Statement of Principles to guide how providers and workers must behave and make decisions,” he said.

“This extra time will allow participants to better understand the changes, so you can prepare and make informed decisions.

“You deserve these improvements; it is as important to me to get them right as it is to you.”

Read what Minister Rae had to say to providers below: