UPDATE: Major reforms to the Aged Care Act have officially taken effect today, promising to enhance the quality of care for older Australians. However, industry leaders are voicing urgent concerns about the readiness of the sector to implement these significant changes.
Under the new rules, some care recipients will now face increased fees for support services, including essential tasks like showering, while clinical support such as nursing and physiotherapy will remain fully subsidized. This overhaul is designed to stabilize the aged care sector and improve service quality. Notably, older Australians currently receiving care will not be adversely affected, as the changes will be grandfathered in.
The reforms also introduce updated rights for seniors, focusing on independence, privacy, safety, and quality of life. Home care provider Dovida, which assists over 14,000 seniors, welcomed the reforms but expressed deep concerns about the federal government’s ambitious goal to reduce wait times for home care to just three months by July 2027.
Greg Bartley, Chief Operating Officer at Dovida, emphasized the urgency of addressing systemic challenges. “The system is already stretched thin, and we believe the government has not made the necessary changes to meet their own target,” he stated. “Without immediate focus on infrastructure, workforce, and assessment capacity, the three-month target could quickly become another missed milestone.”
The reforms, based on the final report from the Royal Commission into Aged Care Quality and Safety released in 2021, will also introduce new tiers of home care to better match services to individual needs. However, Craig Gear, Chief Executive of the Older Persons Advocacy Network, warns that the changes could adversely affect new care entrants, potentially diminishing their purchasing power.
“People coming in on a current package may have less purchasing power,” Gear noted, highlighting the uncertainty surrounding the implementation of these reforms. While many are pleased their rights are now enshrined in legislation, confusion remains pervasive.
The Aged Care Minister Sam Rae praised the reforms as a significant shift for older Australians, stating, “We are fulfilling a promise to deliver dignity, choice, and respect to every person who has spent their life contributing to their community and our country.”
Despite the optimism surrounding these changes, the Greens party opposed the bill, arguing against the financialization of care. Senator Penny Allman-Payne remarked, “Our parents and grandparents deserve to be looked after in their old age, not forced to choose between a shower each day and a meal. Aged care should not be for profit.”
As the aged care sector braces for these sweeping changes, the pressure is expected to mount in the coming years, particularly as the baby boomer generation increasingly requires more support. Questions linger about the industry’s capacity to meet this growing demand, with concerns about workforce adequacy remaining critical.
The Council on the Ageing’s Chief Executive, Patricia Sparrow, anticipates increased clarity regarding the reforms in the coming days as they work through the system. “The changes are large, and people are trying to take them in,” she stated.
With these reforms now in effect, the aged care landscape in Australia is poised for transformation, but the path ahead is fraught with challenges. Industry stakeholders and families alike will be watching closely to see how these changes play out in real time, as the need for quality aged care becomes more pressing than ever.
