Aged care reforms delayed after sector raised survival issues
- Replies 20
The biggest reforms in aged care in about three decades have been delayed by a few months, as the federal government moves to allay concerns from the sector, which had been sounding the alarm about the "drop dead" issues involved for providers if they had pressed ahead.
The changes were due to come into effect next month, but in what the opposition labelled an "embarrassing backflip" the government has pushed the date back to November.
The reforms address recommendations of the royal commission into the aged-care industry, but the rushed timeframe to implement them had drawn criticism from the sector, which argued it was "near impossible".
Health and Ageing Minister Mark Butler said the government had listened to the sector in providing the extension.
"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," he said.
"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."
The sweeping changes will mean Australians entering the aged care system will have to make larger means-tested contributions to their care.
However, a "no worse off" principle means the contributions of anyone already in the system will remain unchanged.
A new Support at Home program will also be implemented under the changes, as the government aims to help more people stay in their homes for longer.
Extension welcomed by peak body
Ageing Australia Chief Executive Tom Symondson said providers were "relieved" with the extension, saying it would avoid "drop dead issues".
"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," he said.
"We were really worried that we would trip over the reform and our organisations 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."
Mr Symondson said the additional time would give the sector critical space to finalise agreements, but cautioned the time extension would not necessarily mean there would be no teething issues once the changes kicked in.
"We wouldn't say that another three months, everything will be perfect, there will still be problems, there are still issues that will probably be working out for months or years into the future," he said.
"But some of those really critical 'can we even deliver care?' type questions will be hopefully resolved and we're going to focus on that, we're not going to take our foot off the pedal."
The Older Persons Advocacy Network (OPAN) chief executive Craig Gear said he "reluctantly" supported the delay.
"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 program," he said.
"We are also concerned that the appropriate systems aren't yet in place to ensure continuity of care and services for older people during the transition."
Shadow Health Minister Anne Ruston said it was the "right decision" for older Australians, but accused the government of having "refused to listen to the concerns" of the sector.
"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," she said.
"This refusal has created months of stress and uncertainty for providers and older Australians, only for the government to now backdown with little more than three weeks to go until their deadline."
Treasurer Jim Chalmers said while the delay was "modest", it would likely result in a loss of revenue of $900 million over the next four years, because it delayed the requirements for wealthier older Australians to pay more for their care.
"We've done this in good faith, out of necessity. It wasn't ready to go and so we have got a responsible delay here," he said.
The federal government had already moved on other recommendations of the royal commission, including a requirement for all facilities to have a registered nurse on duty at all times, and improving the rules governing providers.
When unveiling the reforms last year, the government said they would save $12.6 billion over 11 years.
Written by Stephanie Dalzell, ABC News.
The changes were due to come into effect next month, but in what the opposition labelled an "embarrassing backflip" the government has pushed the date back to November.
The reforms address recommendations of the royal commission into the aged-care industry, but the rushed timeframe to implement them had drawn criticism from the sector, which argued it was "near impossible".
The government's overhaul of aged care laws was due to take effect next month, but there had been some concern in the sector about that timeframe. (Supplied: Rosie O'Beirne)
Health and Ageing Minister Mark Butler said the government had listened to the sector in providing the extension.
"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," he said.
"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."
Health Minister Mark Butler said the delay would allow for a "smooth transition". (AAP: Lukas Coch)
The sweeping changes will mean Australians entering the aged care system will have to make larger means-tested contributions to their care.
However, a "no worse off" principle means the contributions of anyone already in the system will remain unchanged.
A new Support at Home program will also be implemented under the changes, as the government aims to help more people stay in their homes for longer.
Extension welcomed by peak body
Ageing Australia Chief Executive Tom Symondson said providers were "relieved" with the extension, saying it would avoid "drop dead issues".
"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," he said.
"We were really worried that we would trip over the reform and our organisations 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."
Mr Symondson said the additional time would give the sector critical space to finalise agreements, but cautioned the time extension would not necessarily mean there would be no teething issues once the changes kicked in.
"We wouldn't say that another three months, everything will be perfect, there will still be problems, there are still issues that will probably be working out for months or years into the future," he said.
"But some of those really critical 'can we even deliver care?' type questions will be hopefully resolved and we're going to focus on that, we're not going to take our foot off the pedal."
The Older Persons Advocacy Network (OPAN) chief executive Craig Gear said he "reluctantly" supported the delay.
"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 program," he said.
"We are also concerned that the appropriate systems aren't yet in place to ensure continuity of care and services for older people during the transition."
Shadow Health Minister Anne Ruston said it was the "right decision" for older Australians, but accused the government of having "refused to listen to the concerns" of the sector.
"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," she said.
"This refusal has created months of stress and uncertainty for providers and older Australians, only for the government to now backdown with little more than three weeks to go until their deadline."
Treasurer Jim Chalmers said while the delay was "modest", it would likely result in a loss of revenue of $900 million over the next four years, because it delayed the requirements for wealthier older Australians to pay more for their care.
"We've done this in good faith, out of necessity. It wasn't ready to go and so we have got a responsible delay here," he said.
The federal government had already moved on other recommendations of the royal commission, including a requirement for all facilities to have a registered nurse on duty at all times, and improving the rules governing providers.
When unveiling the reforms last year, the government said they would save $12.6 billion over 11 years.
Written by Stephanie Dalzell, ABC News.
.png){kind=icon}
