The Acting Inspector-General of Aged Care Ian Yates AM, in his 166-page 2024 Progress Report on the implementation of the Royal Commission into Aged Care Quality and Safety's recommendations, has called on the Government to make "needs-based" or "demand-driven" aged care the cornerstone of reforms.
The new Aged Care Act retains the current "rationed" system.
Ian Yates AM
Ian said it was understandable the Government was concerned about the costs of a needs-based system, after costs for the demand-driven National Disability Insurance Scheme (NDIS), have blown out in recent years as demand for the support far exceeded expectations. However, the Progress Report states that the aged care system is different to the NDIS in that there are agreed types of care, the level of need is capped, and aged care demand is "measurable and predictable".
"The Inspector-General is very confident that a demand-based aged care system does not pose a threat to budget integrity and is not inconsistent with ensuring the financial sustainability of the aged care system," the report states.
The Acting Inspector-General said it is "critical" there be no further delays in commencement of the new Act and that it be introduced into parliament before the end of 2024, and that the sector and community views are considered in the finalising the legislation before it is introduced into Parliament.
According to the Inspector-General, the Government's priorities over the next six months should be:
- revisiting the new Aged Care Act to incorporate a needs-based system
- finalising the new Act "promptly"
- providing additional funding for home care to satisfy unmet demand
- increase stakeholder engagement in the reform agenda
- consider carefully any perverse incentives that arise from proposed reforms
- examine if regional residential aged care providers are receiving sufficient funding to meet the actual cost of care.
You can read the report here.
