Senate Committee to examine gov’t delay of new Aged Care Act

Labor’s decision to delay the commencement of its “once in a generation” aged care reform, from July 1 to November 1, has been subject to criticism by many in the parliament.

Following Minister Sam Rae's confirmation that it would not release any new Home Care Packages prior to November 1, independent senator David Pocock lodged a motion to establish an inquiry into the implications of the delayed rollout.

With support from the Greens and the Coalition, on Monday the matter was referred to the Community Affairs References Committee for a senate inquiry to look into the government’s handling of the transition. The Committee is required to report by 15 September 2025.

The Albanese government did not move to oppose the motion.

Greens Spokesperson for Older People Penny Allman-Payne will chair the inquiry. The senator was deputy chair for the inquiry into the new Aged Care Act, before it was passed in November.

“You shouldn’t have to be a millionaire just to guarantee care in your old age, but that’s exactly what’s at risk from Labor’s new aged care system,” Senator Allman-Payne said.  

“Right now, over 87,000 people are stuck on the waitlist for a home care package.”

The new Act will bring the release of 83,000 additional home care packages, but the latest data shows older Australians are waiting up to 15 months for access to the appropriate level of care.

The Greens have called on Labor to intervene urgently before November 1.

“Without access to care at home, an older person’s only option becomes the residential aged care system, where cash is king and beds are rationed in favour of those who can afford massive upfront deposits,” she said.

“Far from fixing the residential aged care system, Labor’s changes coming this November mean wealthier homeowners may soon be worth twice as much in revenue to an aged care facility as an older person who lives week to week.

“These changes, combined with the massive shortage of home care packages, are a perfect storm meaning pensioners and older renters will miss out, and be cruelly left to age and die without the care they need.”

The Community Affairs Committee terms of reference are:

The implications for older Australians, their families, carers, service providers and state and territory health systems of the Government’s decision to delay the commencement of the new Support at Home program until 1 November 2025 while also withholding the release of any additional Home Care Packages, with particular reference to:

• The impact of the delay on older Australians waiting for support at home, including unmet care needs and the wellbeing of seniors and their carers;
• The capacity of the Commonwealth Home Support Programme to meet increased demand for support at home prior to 1 November 2025;
• The impacts on aged care service providers, including on their workforce;
• The impacts on hospitals and state and territory health systems;
• The feasibility of achieving the Government’s target to reduce waiting times for Home Care Packages to 3 months by 1 July 2027, in light of the delay;
• The adequacy of the governance, assurance and accountability frameworks supporting the digital transformation projects required to deliver the aged care reforms on time;
• The implementation of the single assessment system and its readiness to support people to access a timely assessment now and beyond 1 November 2025; and
• Any other related matters

Speaking to ABC Radio National Breakfast on Tuesday, Shadow Minister for Health and Aged Care Anne Ruston said the Liberal Party “absolutely” supported Senator Pocock’s motion.

“One of the things that is really very distressing, and it continues to cause great concern, [...] is that the Government made a promise in the election campaign that they were going to release 80,000 new home care packages on the 1st of July,” she said.

“We think that [the inquiry] is an opportunity for us to get to the bottom of why the Government is withholding care that they promised Australians. Is it a fiscal issue? Is it an issue with their administration and their capacity to actually deliver?

“We really do need to know why older Australians, quite frankly, are dying waiting for the care they’ve been assessed as needing.”

The inquiry into aged care service delivery is now accepting submission, until August 22.