Australia’s new Aged Care Act postponed to November

Australia’s Department of Health, Disability, and Ageing announced on Wednesday that the commencement of the new Aged Care Act would be from November 1. 

This was done in order to minimise disruption for healthcare providers and deliver reforms effectively.   

“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,” said Minister for Health and Ageing, Mark Butler, in an official government release. 

The Act passed parliament last November and was expected to commence on July 1. 

Aimed at introducing a rights-based framework around aged care delivery, the Act targets people accessing funded aged care services. 

The delay in commencement of the act was confirmed after receiving advice from the aged care sector that a deferral would mean a better outcome for older people, the Department said. 

“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,” Butler added. 

What this means 

The Aged Care Act 2024 was put in place to replace the former Act with the intention of putting the rights of older people first.

The reforms were put forward by the Royal Commission into Aged Care Quality and Safety to assess the quality of aged care services in Australia and how they could be improved in the future. 

Operating from 2018 to 2021, the independent public inquiry established on the authority of Australia’s Governor-General, produced recommendations to reform the Australian aged care system. 

The Act, for the first time, highlighted a Statement of Rights for older people and a Statement of Principles to guide how providers and workers must behave and make decisions. 

Among several of the objectives stated, the Act will create a simple, single-entry point to ease access to the aged care system for older people. Other measures include introduction of a new approach to regulating aged care providers to ensure delivery of safe, quality aged care services and the strengthening the powers of the regulator, the Aged Care Quality and Safety Commission, to manage risk, ensure integrity and support aged care. 

Why does this matter 

In a series of open letters to aged care workers, providers, and older people, the Minister for Aged Care and Seniors, Sam Rae, said that the deferment would allow for employers to build capability in understanding the new requirements, and to develop guidance and training modules for key changes. 

Moreover, the delay was also meant for older people to prepare for the upcoming changes.  

For instance, the Support at Home programme, which will accompany the new Act in November, was aimed at reforming in-home aged care to help older people live independently at home for longer. 

During calls for feedback on the new programme last year, concerns were raised about the cost of contributions, especially for full-time pensioners and those who do not own a home. 

During the consultation and feedback phase it was also suggested that there was a need for clearer guidance on assistive technologies, home modifications, and related services. 

National aged care association Ageing Australia's CEO, Tom Symondson, reaffirmed that the additional time was needed to give providers the runway needed to finalise agreements, systems, and processes. 

“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,” said Symondson. 

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Non-profit network Older Persons Advocacy Network (OPAN) CEO’s Craig Gear indicated his reluctant support for the delay. 

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

While it remains to be seen how the delay will ultimately impact the service delivery of the slated reform, the challenges of an ageing population was not unique to Australia with countries like Singapore and Japan grappling with this global megatrend. 

According to the Australian Insititute of Health and Welfare, older people were found to make up a considerable proportion of Australia’s population with over one in six people aged 65 and over. 

By 2048, the numbers of people aged 65 and over are projected to overtake those 20 and under. 

GovInsider previously covered how ageing societies require a holistic approach to fiscal policy making as these demographic shifts of falling birth rates and people living longer throw the traditional balance of revenue earnings and spendings. 

Societal values are also being re-evaluated as the roles of community, infrastructure, and design are increasingly leveraged to support the needs of an ageing community.