New Aged Care Bill Announced to Parliament

Written by Katie Buddle, Sector Support Coordinator

After a long wait, with bated breath and some anxious last-minute back and forth between Labour and the Coalition, the much-anticipated Aged Care Bill 2024 has been introduced by the Australian Government to parliament with bi-partisan support.

While many have breathed a sigh of relief, many questions remain about what the new nearly-600-page document contains. As we learn more details and keep one eye planted on parliament, all must remain vigilant and kick preparations for the ongoing changes in our fast-moving sector into full gear.

Here is a brief refresh of some key changes to the 1997 Act:

New Quality Standards
Before: Providers followed general guidelines for care quality, with less emphasis on individual needs.
Now: The updated standards emphasise person-centred care, requiring providers to tailor services to the unique needs and preferences of older people, reflecting a stronger human rights approach.

Enhances Regulatory Measures
Before: Oversight and accountability mechanisms were in place but were criticised for being too lenient or inconsistent.
Now: The amendments introduce stricter reporting requirements, more rigorous assessments, and stronger penalties (note that the criminal punishment measures against providers have been dropped), ensuring that all providers maintain high standards of care.

Increased Transparency and Consumer Choice
Before: Limited information was available to consumers regarding provider performance and care quality.
Now: The Act mandates greater transparency providing older Australians and their families with detailed information on provider performance, helping them to make informed decisions.

Key to the new reforms and their implementation are details of the long-awaited Support at Home system for in-home aged care, with the federal government citing more support for up to 1.4 million older Australians who choose to stay at home to receive care. Due to take place in July 2025 in line with the new Act, 4.3 billion dollars is being streamed to this new system over 10 years.

Here are some important features of Support at Home:

• The government will provide support – most importantly, will cover the costs – of all clinical care for older Australians.
• Meanwhile, individuals will be expected to contribute more to non-clinical care and everyday living and independence support. These contributions will be means-tested against a person’s income and assets.
• There will be three types of defined services, which will be clinical care, everyday living, and independence.
• A lifetime cap of $130,000 will be in place which would mean no older person spends more than this on their non-clinical care, regardless of their income and assets.
• The entry level care payment is $11,000, and the highest level of care payment will be increased to $78,000 as part of a new eight-level classification system for in-home care (to replace the four current HCP levels).
• Older Australians who are nearing the end of their life will be eligible for an additional $25,000 so that they can spend their final three months of palliative care at home, rather than in hospital.
• New Support at Home measures will be grandfathered, with a “no worse off” principle for consumers as HCP providers begin the transition in July 2025.
• CHSP will transition to Support at Home no earlier than July 2027.

The Parliamentary Process: What are the Next Steps?

While the new Bill for Aged Care reforms being introduced is a key step towards the new Act, there are still several legislative stages that need to occur before it is written into law. Here is a brief overview of the whole process:

1. Notice of Motion: Before the Bill is introduced to Parliament, a notice is given by the Minister for Aged Care outlining intent to introduce the Bill.
2. Introduction in Parliament: The Aged Care Bill 2024 is introduced into the Australian Parliament. This is the formal first step in the legislative process.
3. First Reading: The Bill is read for the first time in Parliament. At this stage, it is presented without a debate taking place.
4. Second Reading: The Bill is now read a second time, and a debate occurs in Parliament. Members will discuss the general principles and purposes of the Bill.
5. Committee Review: The Bill may be referred to a parliamentary committee for detailed examination. This committee will consider the Bill and may call or public submissions, community consultations, and/or hearings with stakeholders such as aged care providers, consumers and advocacy groups.
6. Committee Report: The committee reports back to Parliament with recommendations, which may include amendments to the Bill based on feedback obtained during the review in step 4.
7. Consideration in Detail/ Amendments: Parliament will review the committee’s findings and discuss the Bill in detail. Members of Parliament may propose and debate amendments to the Bill.
8. Third Reading: The Bill, including any approved amendments, is read for a third time. Members of Parliament vote on whether to pass the Bill.
9. Consideration by Other House: If passed, the Bill moves to the second House, where it undergoes the same process – first reading, second reading debate, committee review (if needed), amendments, and third reading.
10. Consideration of Amendments by the House of Origin: If there are any amendments returned by the second House, they are considered, and if an agreement is reached by both Houses the Bill is sent to the Governor-General for assent. If an agreement is not reached, both houses will further discuss until they agree, or the Bill is set aside.
11. Royal Assent: If both houses of Parliament have passed the Bill, it is sent to the Governor-General for royal assent, formally becoming law.
12. Implementation Timeline: The Act comes into force 28 days after it is assented to, or on a day or days to be appointed by proclamation. Between the passage of the Bill and the new Aged Care Act taking effect in July 2025, there will be a period for regulatory adjustments, development of supporting guidelines, and preparation for the transition within the aged care sector.

The introduction of the Bill into Parliament is a momentous step for the sector and for older Australians, but there is still a journey ahead of us.

We advise you to keep up to date with the steps and remain alert and agile in your preparation for the reforms. As things progress, we will continue to keep you informed however we can.

Resources

Read some more summarised headlines and discussion here.
Read a media release from the Hon Annika Wells, Minister for Aged Care, here.
Read about the changes from the Department of Health and  Aged Care here.
An update from the Aged Care Quality Commission here.
Access an easy-to-read Aged Care Bill factsheet here.

Support at Home fact sheet here.
We also recommend you read and share this Your Side update on the Support at Home model, which may also be of use to your clients.