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A welcome step toward a new Aged Care Act

Introduction of a new Aged Care Act in Parliament this week is a welcome step in the right direction for Aged Care Services in Australia.

Uniting AgeWell CEO Andrew Kinnersly and Board Chair, Raelene Thompson joined 15 UnitingCare Network leaders and the UnitingCare Australia team at Parliament House in Canberra this week for a very productive two days of meetings and advocacy on a range of issues, with Aged Care being a central point of discussion.

Andrew was delighted to learn the legislation had been tabled, as all attendees returned to their respective home states from Canberra.

“I am absolutely thrilled that the Federal Government announced this afternoon that the new Aged Care Act would be introduced to Parliament with bipartisan support from the Coalition.

Older Australians deserve high quality aged care services, and they deserve these services when and where they need them. Today’s announcement is a very important step towards creating a viable and sustainable aged care system that meets the growing needs of our ageing citizens.”

Andrew emphasised the need for Uniting AgeWell to support current and future customers through the reforms and believes this will ensure people in Australia will enjoy a far improved experience as they become older.

The new Act, recognises the number of older Australians will grow exponentially with over 65’s set to double by 2040.

The proposed changes include:

  • The inclusion of grandfathering arrangements, to ensure that every Australian who has already commenced their journey of ageing within the Commonwealth system will not be impacted by these changes.
  • The inclusion of a lower taper rate to ensure equitable contributions for Australians who have worked hard all their lives to save for their retirement.
  • An assurance that the Federal Government will remain the majority funder of aged care, not the consumer.
  • The maintenance of a lifetime cap on care contributions across both residential and home care, to provide certainty to families who may have loved ones in care for many years.
  • The inclusion of a time limited cap for residential aged care, to ensure that older Australians and their families will only be required to contribute to care costs for 4 years.
  • $300 million in additional capital funding through the Aged Care Capital Assistance Programme for regional, rural and remote aged care providers to upgrade their facilities.
  • Additional care funding particularly for regional, rural and remote aged care homes.
  • $4.3 billion spent on a new system of home care, called Support at Home, which will come into effect on 1 July 2025, and will help Australians remain independent, in their home and their community for longer.
  • By 2035, Support at Home will help around 1.4 million people stay in their homes as they age.
  • Support at Home will provide support for:
  1. Clinical care (e.g. nursing care, occupational therapy)
  2. Independence (e.g. help with showering, getting dressed or taking medications)
  3. Everyday living (e.g. cleaning, gardening, shopping or meal preparation)
    The Government will pay 100 per cent of clinical care services, with individual contributions going towards independence and everyday living costs.

The Government and Coalition agreed the legislation should be tabled in Parliament yesterday. The Bill will then go to the Senate and be referred to an Inquiry prior to changes to the current arrangements.

Claerwen Little, National Director of UnitingCare Australia believes it was important to bring the voices of sector leaders to Parliament with the CEO Advocacy Day.

“The tabling of the new Aged Care Act opens the door for much needed reform. The number one recommendation of the Royal Commission was a new Aged Care Act, so we welcome this crucial step forward today,”