Redress Payments and the new Aged Care Act

The National Aged and Community Care Roundtable for Forgotten Australians (National Roundtable) is a crucial forum addressing the unique needs of older Australians who experienced institutional or out-of-home ‘care’ as children. This National Roundtable unites stakeholders, including policymakers, care providers, and advocates, to develop strategies to ensure these individuals receive compassionate, tailored support in their later years.

Formed in 2019, the National Roundtable includes Forgotten Australians/Care Leavers, aged and community care service providers, and researchers. The term ‘Forgotten Australians’ was coined by the Senate in its 2004 inquiry into Children in Institutional ‘Care’. More than 500,000 children were placed in institutions and out-of-home ‘care’ in Australia between 1940 and 1989. This group is now ageing prematurely due to the neglect and abuse they endured.

As a special needs group under the Aged Care Act, Forgotten Australians must be recognised as having pressing needs. Many are now entering the aged care system, but the National Roundtable has highlighted the injustice they face if they have received a Redress Payment under the National Redress Scheme.

The Royal Commission into Aged Care Quality and Safety, established in April 2019, responded to public concerns about violence, neglect, and abuse in aged care facilities. The Commission’s findings underscore the need for reform, especially for vulnerable groups like Forgotten Australians.

Redress Payments are made to those who experienced childhood institutional sexual abuse, recognising the harm caused. These payments are made by the institution where the abuse occurred, (which could include the government), but they are not government payments.

Forgotten Australians represent a significant portion of Redress Payment recipients.

During aged care asset testing, however, Redress Payments are considered an asset. This means the payment is either taken away when entering residential care or counted as income for home care packages, leading to higher fees. Essentially, one hand gives while the other takes away.

The National Roundtable notes a precedent with eligible Veterans, whose Prisoner of War ex gratia payments were excluded from aged care means testing in 2014. The National Roundtable advocates for similar treatment of Redress Payments for Forgotten Australians, ensuring the payment’s purpose is upheld and preventing further distrust in the government.

Forgotten Australians who have experienced sexual abuse have long fought for justice. The redress payment is intended to recognise this, and it goes against the spirit of the Royal Commission findings and the National Redress Scheme to consider any part of the payment as an asset for aged care. These individuals are already at a disadvantage economically, socially, and physically due to their experiences in care and abuse and losing redress payments exacerbates their reluctance to access aged care.

The National Roundtable has been working with the Department of Health and Aged Care to investigate and realise the exclusion of redress payments from Aged Care Asset testing. We continue to work with the Department to ensure this critical issue is addressed.

Meanwhile, the National Roundtable continues to raise the issues of inequality and advocate for the rights of Forgotten Australians. By uniting stakeholders from various sectors, the National Roundtable works to develop and suggest policies that ensure compassionate, tailored care for Forgotten Australians in their later years. Advocacy for excluding Redress Payments from aged care means testing is crucial in ensuring justice and support for Forgotten Australians, honouring their experiences and providing them with the dignity and care they deserve.

Anne Livingstone is Chair of the National Aged and Community Care Roundtable for Forgotten Australians

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