A new era for aged care
Australia has introduced a new Aged Care Act with significant funding and reforms designed to improve service delivery, enhance worker wages, and ensure timely support for seniors.
In a significant development for Australia’s aged care system, a new Aged Care Act has been formalised, promising to reshape the landscape of care for seniors, particularly in the realm of home care. The act is seen as a progressive step forward, addressing long-standing concerns within the sector.
“We will introduce a new Aged Care Act to Parliament,” Minister for Aged Care Anika Wells announced at a press conference last week. “We announce a need-based arrangement that makes financial sense, a system that helps more homes have more services for older Australians. Our reforms will create better and safer care.”
Key features of the support at home program
The new legislation features a substantial $5.6 billion package, which includes $4.3 billion allocated for the new Support at Home program. This initiative aims to reduce wait times for services to three months from assessment by July 2027, ensuring that more seniors receive timely support in their homes.
In addition, the Albanese Government is investing $3.8 billion over four years to support the aged care sector in delivering a higher standard of care. This funding will support pay rises for workers starting 1 January 2025, benefiting approximately 340,000 aged care workers in both residential and home care.
“We are funding the Fair Work Commission’s Aged Care Work Value Case Stage 3 decision, which will see award wage increases for many workers in aged care,” said Ms Wells. “This will, in turn, support recruitment and retention of aged care workers, and the delivery of well-staffed and consistent high-quality care for older people in Australia.”
The importance of home care
The importance of home care was echoed by Dr. Siva K. Dhanaraj, a prominent advocate in the sector.
“Home care enables individuals to age in place, surrounded by family and friends, which is crucial for their overall wellbeing,” said Dr Dhanaraj.
Ms Wells elaborated on the intent of the new act, saying: “The Aged Care Bill implements a number of election commitments such as mandatory aged care food standards, statutory duty of care for registered providers of aged care, worker screening and stronger investigative powers for the regulator.”
The government’s commitment to maintaining the family home’s status under the new system reinforces the focus on home care.
Enhancing quality and protections
The Support at Home package is set to provide assistance to an additional 300,000 participants over the next decade.
“The new Aged Care Act has the potential to enhance quality standards, increase protections for older people, and create a financially sustainable aged care system for future generations,” said Craig Gear, CEO of the Older Persons Advocacy Network.
In conjunction with these initiatives, changes to the Australian National Aged Care Classification (AN-ACC) pricing will ensure providers can meet increased costs associated with care delivery.
“Through more funding for aged care homes, better wages for staff, and improved care for residents, the Albanese government is continuing to invest in a safer, more equitable aged care system,” Ms Wells added.
A pivotal moment for reform
Providers across the sector welcomed the new legislation, seeing it as a pivotal moment for reform.
“We commend the Federal Government and Opposition for showing their commitment to the aged care industry by reaching agreement on a range of reforms that will unlock crucial funding for the sector,” said Sandra Hills, CEO of Benetas.
Stephen Muggleton, CEO of Bolton Clarke Group, noted, “We welcome news of bipartisan support for historic aged care reform. This announcement and progression of the new Aged Care Act through Parliament will provide much-needed certainty, supporting the sector to grow and meet the needs of a booming ageing population.”
Looking ahead
As the bill progresses through Parliament, stakeholders in the aged care industry are closely monitoring its implementation.
“This is a historic moment for aged care, for older Australians and those of us who love them,” said Ms Wells, who thanked Shadow Minister for Aged Care Senator Anne Ruston for her bipartisan support.
The integration of these home care initiatives into the broader aged care framework marks a significant leap towards a more compassionate and responsive system for our ageing population. The enactment of the new Aged Care Act is not just a regulatory change; it’s a commitment to ensuring that older Australians receive the care they deserve, allowing them to live their lives with dignity and autonomy in the comfort of their own homes.
Follow Community Care Review on Facebook, Twitter and LinkedIn and sign up to our newsletter.
