Weeks out from the delivery of the Aged Care Taskforce’s Final Report, the Minister for Aged Care and Sport has urged providers to “keep the faith” as she promised a significant shake-up of funding arrangements post-Taskforce.

Minister Wells has pledged more funding for the sector – including investment in new aged care beds and a shake-up of consumer contributions in home care – in the clearest sign yet that the Aged Care Taskforce will deliver on Plan B for increased consumer contributions in aged care.

Delivering a keynote address at the Aged and Community Care Providers Association (ACCPA) National Conference on 27 October, the Minister confirmed that she remains “ambitious” as ever for the aged care sector – and that will require an uplift in funding.

“It’s clear there needs to be an injection of funds in both the home and residential sector to ensure we have viable providers that can meet increasing demand and expectations for the years and decades to come,” she said.

Taskforce needs to “get more funding” into aged care

Noting that aged care funding is expected to almost double from $24 billion in 2021-22 to $42 billion a year by 2026-27 – just three years’ away – Minister Wells said the Aged Care Taskforce has identified several “issues” with the current funding model.

This includes the need for capital investment in residential care, increased funding for daily living services and accommodation (the focus of Plan B) and the lack of consumer contributions in home care.

“We formed the Taskforce with a simple premise – how do we get more funding into a sector that needs more funding,” she stated.

“We need better ways to attract more capital into the sector to allow you to refurbish old facilities and build new ones.”

“We need to ensure you’re getting enough funding for hotelling services and accommodation.

“We need to address a badly designed, overly complicated user contribution system that in Home Care, for example, currently delivers just 2.5% of total funding.

“We need to make sure funding changes are transparent and easy to understand – for older people and for providers.

“And we need to make sure aged care is set up not only to survive but to thrive for the years and decades to come.”

Providers thanked for “embrace of reform”

The promise of more funding was balanced by recognition that providers will face more pain under the continuing reform agenda that began with the Aged Care Royal Commission.

The Minister was clear that the job of reforming the sector was far from over.

“The green shoots of hope have arrived,” she said. “But I remain ambitious for aged care.”

Minister Wells noted that while the Government has addressed 69 Royal Commission recommendations in the past 12 months, there are over 100 reform projects that are currently active.

These include the new Aged Care Act, with an exposure draft of the Bill for the new Act expected to be released for public consultation by the end of the year – just seven weeks’ away.

The Minister also singled out the new Support at Home program starting 1 July 2025 – just over 18 months’ away – and the new single assessment system commencing 1 July 2024 – as key pillars.

A “more streamlined” regulatory system

The Minister acknowledged that these reforms are often accompanied by more red tape for operators – and promised that this would not be the case under these changes.

“It will be a more streamlined system to help make your jobs easier,” she said, noting that the two most common words used when discussing the sector with Government are “too complex.”

“We’re moving from a system of often unnecessarily burdensome regulations to one of thoughtful design.”

But the key challenge facing the sector remains changing the narrative around aged care from negative to positive.

“Narrative change is only propelled by tangible evidence,” she said, citing the improved Star Ratings as proof that the quality of care is increasing.

“I want older Australians planning their future to see they shouldn’t be afraid of aged care.”

Keep the faith – and be rewarded

In return for operators ‘keeping the faith’ in the reform process, the Minister pledged to respond to the work of the Taskforce and “put aged care on a footing that is more sustainable, simple, fair and equitable.”

Praising ACCPA CEO Tom Symondson’s “evidence-based advocacy” on behalf of providers as a Taskforce member, the overall tone was one of new respect for the sector – and a collegiate approach looking ahead.

“Working alongside you, and closely with ACCPA, the aged care sector will be its best self,” Minister Wells promised.

“We stand at the threshold of a once in a generation opportunity to make our sector sustainable, strong and ready for a new era.

“Keep the faith and together we will get this done.”

Will this positive tone be reflected in the Taskforce’s Final Report? Watch this space.