“Much-needed breathing space:” Sector welcomes reform delay

A collective sigh of relief was heard across the Australian aged care sector yesterday as the Albanese government announced it will delay the commencement of the new Aged Care Act until November 1.

The Department of Health, Disability and Ageing says it listened to experts and the aged care sector in making the decision to defer reform, so with less than 30 days left before the Act was due to commence, providers have been given a four month reprieve.

The sector has been generally welcoming of the news, as many providers have reported feeling underprepared for the sweeping reform.

Industry peak Ageing Australia (AA) has been one of, if not the most vocal advocate for a more lenient, staged approach to the Act’s implementation. In March, AA made a pre-budget submission calling for $600 million to aid providers in their transition to new information and communications technology infrastructure.

In April, AA chief Tom Symondson demanded the government take urgent measures to address workforce shortages, more home care packages and a more flexible reform timeline.

And finally, just last month the organisation released a statement damning the new service agreement requirements for every CHSP care recipient calling the move “the straw that breaks the camel’s back.”

Mr Symondson sits on the National Aged Care Advisory Council, designed to provide expert advice to government on key matters relating to the sector, and called yesterday’s decision “a win” for the 1.4 million older Australians who rely on aged care.

“This decision is the result of months of intense discussions and calls for practical timelines for the sector. We know that rushed reforms would put levels of care at risk for older people,” Mr Symondson said.

“We applaud the Government for listening to the concerns of the aged care sector and putting the needs of older Australians first.”

“We fully support the new rights-based Aged Care Act, but the simple truth is we’re not ready to introduce all the sweeping reforms by 1 July. Providers have been working around the clock to ensure a smooth transition, but we just haven’t received all the information we need in order to proceed.

“The additional time will give us the critical space we need to finalise agreements, systems, and processes.

“We need to do this reform once and do it right. We hope this extension will help us get closer to that goal.”

Provider’s get “much-needed breathing space”

Aged care providers across the country, including Anglicare, Dovida, and Catholic Health Australia, have wholeheartedly welcomed the reform extension.

Whiddon CEO Chris Mamarelis called the delay “four months of much-needed breathing space for teams that are fatigued after working tirelessly since the start of the year to implement regulatory changes, while key rules and details have only been trickling through.”

“This decision is a win for common sense, and we must now work collaboratively and systematically with Government to ensure we are all ready to proceed on November 1st.”

Catholic Health Australia (CHA), which represents more than 350 aged care facilities and 20 per cent of home care, said it is glad the government has heard its calls for a delay to the implementation of the Act.

“Partly due to the later-than-expected passage of the Aged Care Act, much of the detail around how the new program will work is incomplete or in draft,” CHA chief Jason Kara said.

“Requiring providers and residents to sign agreements without key information such as co-contribution amounts and transitional rules would have risked the discontinuation of care, or care being provided without a legal service agreement, posing legal, financial and regulatory risks.

“Delaying the transition will allow older Australians to seek advice and make informed decisions before signing a new agreement and support providers to continue delivering high quality care throughout this process.”

Lingering concerns

While Treasurer Jim Chalmers highlighted that the extended deadline will cost the federal government $900 million in revenue, the Older Persons Advocacy Network (OPAN) is more concerned about the delay to the introduction of rights-based legislation and crucial protections for older Australians.

“Until now, OPAN has been steadfast in its call for the Act to be implemented, as promised, on 1 July 2025, because older people can’t get the aged care they need without it,” OPAN chief Craig Gear said.

“However, over the past weeks, it has become increasingly apparent that, while the macro design of the reform is solid, older people don’t have the necessary information to make informed choices at an individual level, particularly around the new Support at Home program.

“We are also concerned that the appropriate systems aren’t yet in place to ensure continuity of care and services for older people during the transition.

“It is for these reasons, OPAN reluctantly supports the delay announced by the Minister for Health and Ageing and the Minister for Disability and the NDIS Mark Butler and the Minister for Aged Care and Seniors Sam Rae.”

The network has been clear with it's priorities, writing to government to request a minimum 20,000 additional home care packages during the four-month delay, as well as fast-tracking the Act’s rights-based legislation, giving older people more choice and control over the delivery of their care.

Mr Gear said this is not the time to “take our foot off the pedal.”

“Inadequate in-home care support pushes older people prematurely into residential aged care,” he said.

“We need to use this four-month window to urgently address outstanding issues, which include accessible hardship provisions for those with limited means, and roadblocks in the single assessment system which are exacerbating waiting times for in-home aged care.”

Reporting shows there are currently around 83,000 people on the waitlist to receive their appropriate level of home care, resulting in wait times of up to 11 months.

It is for this reason that COTA Australia chief Patricia Sparrow has also called for the release of extra packages of support for older people living at home.

“We don’t want to see older Australians continuing to experience long wait times for the support they need to remain independent at home. No one should be waiting for longer than 30 days for these critical supports,” she said.

“This delay provides an opportunity to work with older Australians and their supporters to explain what the changes will mean for them. This time must be used wisely to iron out any remaining implementation issues and prioritise supporting older people. The system must be ready to go from 1 November.”