5f14287629cefadb3f981707300cb101
Subscribe today
© 2024 The Weekly SOURCE

Government and Opposition reach agreement on “historic” aged care reforms

2 min read

The Government and the Opposition have reached a bipartisan agreement to support a $5.6 billion aged care reform package, with the new Aged Care Act expected to be introduced into Parliament later today.

At the same time, the Government quietly released its response to the Aged Care Taskforce's recommendations, six months after its final report, which outlines support for significant funding reforms to the aged care sector, including increased consumer contributions from aged care recipients with the means to pay or Plan B.

You can read the response here.

At a press conference in Canberra, Prime Minister Anthony Albanese said the reforms are "the greatest improvement to aged care in 30 years".

"Reforms like this don't happen every day, they are once in a generation."

Treasurer Jim Chalmers said the reforms will save $12.6 billion over the next decade and will reduce aged care's share of GDP over the next decade from 1.5% of the economy to 1.4% "even with more people in the system and a higher standard of care at the same time".

The reforms include key recommendations from the Aged Care Taskforce, including larger means-tested contributions from new entrants, higher maximum room price that is indexed over time, and the retention of a small portion of refundable accommodation deposits by providers.

Bipartisan support

The Opposition, which last year indicated it would extend bipartisan support to sensible reforms, has been locked in negotiations with the Government for months.

The Government was making changes to the legislation even in the last 24 hours, according to reports.

Today's agreement reflects several concessions make by the Government to the Opposition, including the grandfathering of arrangements for existing aged care customers and the removal of criminal penalties for aged care employees.

A statement from the Opposition said: "With these changes now confirmed, the Opposition will agree not to amend the financial sustainability framework contained in the Government's Aged Care Bill so they will finally introduce the Bill into the Parliament and lift the veil of secrecy."

The Minister for Aged Care Anika Wells, who worked in aged care as a university student, told the press conference, "It is a real privilege to work in aged care. It is some of the most meaningful work you could ever hope to do.

"And it's been an honour to return to this sector and to have this opportunity as a minister, to bring it out of the shadows and into the light, and to prepare it for a future that all older Australians can rely on without any more fear."

"Finding a way through"

Tom Symondson
CEO ACCPA

Tom Symondson, CEO of Aged and Community Care Providers Association (ACCPA), congratulated the Government and the Opposition on achieving bipartisan support for the reforms.

"We must congratulate both the Government and the Coalition for finding a way through after months of intense negotiations. They have put older Australians and the future of aged care above party politics,” he said.

"Minister Anika Wells, Minister for Health and Aged Care Mark Butler and Shadow Minister for Health and Aged Care Senator Anne Ruston should all be congratulated for working through such complex legislation and delivering a genuinely bipartisan outcome.”