We know that the federal government has already delayed the implementation of some of the major aged care reforms. This announcement is a result of significant advocacy and concern raised by the industry. Originally slated to go into effect next month, the rule changes will instead be delayed until November. This decision provides the entire sector with critical time to address key potential operational challenges. It also makes sure that every system is prepared for a transition without hiccup.
In his release, the Minister for Aged Care Mark Butler noted that this is part of a government effort to really hear what the sector needs. He noted that the extension would allow for a more gradual rollout of the reforms, which would help ease the transition. These reforms are the biggest changes to aged care in thirty years.
“We need to think about a delay of a few months to ensure that all of the systems are in place to deliver a smooth transition to the new laws, and also that older Australians are fully informed about what those new laws will mean for them.” – Mark Butler
Background of the Reforms
The reforms that are about to roll out bear enormous fiscal responsibility. The savings to the federal government are expected to be around $12.6 billion over the next eleven years due to these changes. To get there, we will need to frontload those savings with $930 million in new spending over the first four years. This funding will help implement new federal laws that protect the rights of older Australians. It’ll strengthen investigative powers and create a new Ontario complaints commissioner.
Now, as Australians move into the aged care system full-time, they will increasingly have to pay more in means-tested contributions to their care. A wide range of stakeholders in the sector have implored lawmakers to reconsider this negative piece of the reform. They are urging a smart and strategic rollout and implementation phase.
Sector Reactions
Tom Symondson, Chief Executive for Aged Care Australia expressed that there was a sense of relief throughout the industry about the extension. He noted that this additional time would provide essential space for providers to finalize agreements and ensure that necessary systems are operational.
“We were really worried that we would trip over the reform and our organizations would essentially not be able to cope. Now, many would have done, this was never going to be a cataclysm, it was never gonna be the end of the world, but there was just too much risk that older people would suffer.” – Tom Symondson
In a statement upon the passage of the extension, Symondson emphasized how valuable the extension is. He cautioned that doesn’t ensure an easy implementation with little to no hiccup. He cautioned about what he called “drop dead issues” that might happen without enough preparation on the part of providers.
“The types of issues that would have led to a provider not being paid for a couple of months, or receiving less money than they needed to operate potentially for an extended period, systems collapses that might have meant the bills didn’t come out.” – Tom Symondson
Political Implications
The blustery delay has raised a chorus of predictable responses from pols eager to shoot the messenger. Anne Ruston accuses the federal government of listening only to their concerns and sidelining the sector’s key concerns in the downgrading process. In her words, the extension was an “admission of failure.”
“Today’s embarrassing backflip by the Albanese Labor government on the delivery of their aged care reforms is a clear admission of failure — and one that could have been avoided.” – Anne Ruston
Despite these criticisms, Butler is still hopeful about realising gains from the reform in Australia’s new aged care debate. He asserts that with careful planning and execution, these changes can lead to high-quality, world-class services for older Australians who have significantly contributed to society.
“Nonetheless, what we see into the future is a once-in-a-generation reform to the aged care system that will deliver high quality, world class aged care services to older Australians who have built this community.” – Mark Butler
