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Labor aged care reforms 'meaningful' but fall short of royal commission vision, says watchdog

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Labor aged care reforms 'meaningful' but fall short of royal commission vision, says watchdog

Screenshot 2025-09-05 at 11.38.31.png Labor aged care reforms 'meaningful' but fall short of royal commission vision, says watchdog
The aged care sector watchdog said Labor's reforms to the sector were "meaningful" but fell short of the vision outlined by the royal commission. (Supplied: Rosie O'Beirne)

Labor's landmark aged care reforms have fallen short of the vision for the sector laid out in the 2021 royal commission and may fail to deliver on their promise to contain taxpayers costs, according to the sector watchdog.



Inspector-General Natalie Siegel-Brown said the Albanese government had made "meaningful change" to improve aged care but added she had "genuine fears" that its decision to hike user fees would push some "vulnerable" people to forego care.





"[Labor's] Act promotes care that is equitable accessible and which prioritises compassion, kindness, respect for life experience, dignity, quality of life, mental health and wellbeing," Ms Siegel-Brown wrote in her first official progress report.



"[But] There are some areas in which an urgent change of approach is needed if the underlying intent of the Act is to be more than just aspiration."



The report, dated from May but tabled in parliament on Thursday, comes in a week which saw Labor forced into a backdown over the timing of 20,000 home care packages.



Those packages were tied to Labor's sweeping aged care reforms, which were passed late last year with the backing of the Coalition and will introduce new guiding principles and a new funding model for both in-home and residential aged care.





New Aged Care Minister Sam Rae delayed the start date for those reforms on the sector's urging, but came under fire this week from the Coalition and crossbenchers because the late start date would worsen wait times for those seeking home care.



When the new legislation is in place, Labor has said it expects wait times will be no more than three months, compared to the years-long waits that have become commonplace.

But Ms Siegel-Brown said a three-month wait, and the decision to retain a system with limits on the number of available home care places, were inconsistent with the royal commission's call for a system of universal entitlement to care.



"This is not the model of timely access to care that the commissioners called for," she wrote, noting the royal commission called for wait times of one month.



"The current approach cements a rationed system. This continues the decision of previous governments to refuse to accept this recommendation."


Most recommendations accepted but different approach on funding

While Labor accepted most of the royal commission's recommendations, and the Inspector-General's report acknowledges 138 of the 148 have been either completed or partially progressed, it expressly rejected its views about funding.



An Aged Care Taskforce convened by former minister Anika Wells disagreed with the view of commissioners that taxpayers should fund improvements to the sector through a new levy.



Ms Wells's taskforce argued this would compound intergenerational inequity and that older Australians with financial means should pay more, noting the government was paying for 95 per cent of home care costs and 76 per cent of residential care costs.



Labor's new bill tipped the balance slightly towards user payments, based on the principle that the government would pay for clinical care, but older Australians who could afford to do so would pay for expenses such as food and accommodation.



The government remains the primary funder of aged care and will pay 89 per cent of home care costs and 73 per cent of residential costs under the new model.



Ms Siegel-Brown acknowledged the government's budget constraints but said she was concerned the new funding model would compromise access to care for vulnerable people.




Screenshot 2025-09-05 at 11.47.03.png
Aged Care Inspector-General Natalie Siegel-Brown was appointed late last year by the government. (ABC News)



She argued the distinction between clinical and non-clinical care was "inconsistent with high-quality care", in particular because showering was not classed as clinical care.



"Personal hygiene has a clear clinical dimension if not in its delivery, then certainly in its absence," she said, warning some vulnerable people may forgo showering.



"This has implications for a person's dignity, and ultimately their hygiene and safety, in particular if continence is an issue."



Ms Siegel-Brown acknowledged the fiscal constraints facing the government but argued the bill could backfire on its stated aim to contain taxpayer expenses if the out-of-pocket expense pushed people out of home care and into residential care.





"My Office understands the reality the government is up against: an increasing ageing population magnifying the demand for aged care, with a decreasing working-age population to fund it," she wrote.



"There is not a limitless pool of money. But I share the fears of stakeholders that these reforms could potentially create unnecessary cost blow outs."



Workforce measures helping, but more needed in other areas

The Inspector-General also said the government's measures to support the aged care workforce had "aided and attracted the retention of staff", but said further action was needed to limit the use of physical and chemical restraints and for culturally sensitive care and care for Aboriginal and Torres Strait Islander people.



She said the report was not intended to produce "gotcha moments" and said she and the government "share the same aims".



"The Inspector-General is working to highlight the obstacles and, importantly, make sure there is a path to achieving shared goals."



In a statement, Mr Rae said the government was "really grateful" for the report.



"She is absolutely right that we share the same goal … It's encouraging to see acknowledgements that our reforms have strengthened clinical care, improved provider viability and strengthened our aged care workforce," he said.



"We acknowledge the job ahead of us — there's much more to do to realise the full vision … We don't shy away from the challenges."



Greens Aged Care spokesperson Penny Allman-Payne said the report was a "shocking wake-up call".



"We have just managed to drag the government to deliver more home care packages, but this report shows that there is a co-payment tsunami about to break on the older people in this country. The financialisation of aged care is terrifying."



Written by: Tom Crowley, ABC News.

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Everything this government does or approves always has an extended Waite time. Here's a tax relief, well give it to you in a year and a half. Here's your home care package you can maybe have it in 3 months. What a bunch of arseholes rorting the Australian people, they should be kicked out. They are making Australia a third world country and the laughing stock of world jokes.
 
Everything comes at a cost, and I think it perfectly reasonable that people who can afford to pay should pay. Unfortunately, the recipients who have lived off welfare most of their lives haven't contributed taxes during their working life, so really haven't earned their right to aged care while those who have paid taxes might be deemed to be rich enough to pay for their aged care. They still need it.
Wait times? I've qualified for a very basic level of aged care - but won't get any in the foreseeable future. It's all right for me because I don't need it - yet. I've learned to look for help a year or two in advance, since my experience with getting to see specialist medical help in SA involves at least a year's wait.
 
I have been waiting for an upgrade in the level of my home care package. It's only been 18 months so far so I'm hoping my name should be getting near the top of the list. Maybe I should give them a call on Monday. :confused:
 
I heard the other day (from a Home Care Provider) that the new plan has been deferred yet again & won't be available until next year - probably March 2026. Meanwhile it appears that all new packages have been frozen until this happens & we wait & wait & wait for the help we need NOW.
 
I heard the other day (from a Home Care Provider) that the new plan has been deferred yet again & won't be available until next year - probably March 2026. Meanwhile it appears that all new packages have been frozen until this happens & we wait & wait & wait for the help we need NOW.
At least you were notified it has been deferred - I haven't heard anything from anybody for over a year. Although I admit I am not urgent, and you doubtless need it much more than I do.
Good luck and start agitating if you can. I usually start by writing letters to politicians - in this instance, minister for health/aged care, shadow minister for health/aged care, prime minister, leader of the opposition and my elected MP. It sometimes works. It's the same letter, cc'd to everyone except the minister for aged care. Easy with a computer.
If enough of us get stroppy, something might actually be done.
 
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Everything comes at a cost, and I think it perfectly reasonable that people who can afford to pay should pay. Unfortunately, the recipients who have lived off welfare most of their lives haven't contributed taxes during their working life, so really haven't earned their right to aged care while those who have paid taxes might be deemed to be rich enough to pay for their aged care. They still need it.
Wait times? I've qualified for a very basic level of aged care - but won't get any in the foreseeable future. It's all right for me because I don't need it - yet. I've learned to look for help a year or two in advance, since my experience with getting to see specialist medical help in SA involves at least a year's wait.
I agree with the first bit but what about MOTHERS who stayed home and raised their children while looking after others for working mothers? I have done both and my husband paid taxes as well. I am on a Single Pension $555 a week and have to pay every thing out of that, we don't get help with False Teeth or Glasses I can't afford to pay for them. Government don't pay for them.
I am on my 4 th provider as the first 3 ripped off not only myself but the workers as well the first one left me in over $2,000 worth of debt I had to borrow from Center Link took me 12 months to pay it off out of my Pension they owed workers and didn't pay them went back to India for Christmas I reported it BUT GOT NO WHERE each time you switch Providers you have to wait 72 Days to have your funds transferred
I couldn't even get cleaners as they said I had no money yet my monthly allowance was going in I had to wait nearly 2 years to get my package 4 (received only this year), and then fight like mad to get them doing things for me. In the end I had help from our local member who took over on my behalf after a few email's asking for help, I am a fighter and will get there, but the stories I hear from my helpers about how bad it is out there for those of us who stay at home makes me angry most can't fight for themselves so are just left waiting for help until they die. I have heard one story where the family waited so long for their nana to get help she died before she got it and the stories go on, another family the mother had $90,000 in account fighting to get help she came down with Alzheimer's, where does the money GO? her daughter is now looking after her in a nursing home ( that are also really bad I know ) The workers are not allowed to talk to you or give you their phone number when you try to get hold of providers they don't answer or say they will call you back THEN DON"T. These young ones ( STILL WET BEHIND THE EARS ) running the department need to be made go to each and every state and home, check what is going on they DON'T HAVE A CLUE.I have had Nurses, Hairdresser and Others say how bad it is but WHAT CAN YOU DO ? the families suffer just as much not knowing where to go for help after hitting so many brick walls. They all seem to forget those Pensioners and their families before them made Australia the wonderful country it was. The farmers who came back from the war to be given land that was rubbish to turn it into what it is today and still struggle to survive and now have NO SAY. It breaks my heart to think of those poor old Loves who worked so hard are now dumped on the scrap heap.
 
Unless the system has been changed since 2009 Aged Care Facilities know when they are going to be inspected
 
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Everything this government does or approves always has an extended Waite time. Here's a tax relief, well give it to you in a year and a half. Here's your home care package you can maybe have it in 3 months. What a bunch of arseholes rorting the Australian people, they should be kicked out. They are making Australia a third world country and the laughing stock of world jokes.
And the other lot did so well! 🤔 😂
 
Aged care packages need to be much more flexible rather than pigeon holed. Hubby with terminal Cancer has 1.5 hours of domestic help offered when I am still able to do the domestic chores around the home for him I find this a waste of taxpayers money. I'd rather he get help with getting motivated with mental health & motivational help. He has been waiting over twelve months to get an upgrade on his package so that these things are available to him in the next level up. Why is domestic help on the 1st rung and not other help. I worry my husband will have taken his own life before he gets the help he needs.
 
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I have both forms of Multiple Sclerosis, and am entitled to 1 hour of housework a fortnight. I was diagnosed in 2020, on my 65th birthday and as such was ineligible for the NDIS. I was told I had probably had it for around 6 years prior to that, but was constantly being misdiagnosed. Because my husband, who is 76 years old, is deemed able to do tasks, that's my entitlement. Neither of us are able to do gardening, and when I first took out the package, I was told we would have to wait around 6 months, as there were none available in our area. That was 4 years ago.
 

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