After much uncertainty, the Aged Care Bill 2024 has been introduced to parliament. The introduction of the Bill is the first official step towards the new Aged Care Act (Act) being written into law, so it’s worth reviewing what exactly the new Act will change and what providers need to be aware of.
When will the new laws commence?
At the moment, we have an Aged Care Bill. A Bill is not yet a law. The Aged Care Bill will be debated in parliament and reviewed by committees and might be redrafted slightly over the next few months. Eventually it will be passed by parliament. When this happens, the Bill becomes an Act, which means that is the law and providers must abide by it.
The new Aged Care Act is expected to commence in July 2025.
What will the new Act include?
The new Act represents the government’s response to 58 of the 139 recommendations of the Royal Commission into Aged Care Quality and Safety, number one of which is the introduction of a new, rights-based Act to regulate the Aged Care sector. The new Act will make several changes to the way Aged Care is regulated and provided, and how older people engage with the system.
Putting Older People Front and Centre
The new Act will include a Statement of Rights and a Statement of Principles for older Australians in aged care that providers are expected to uphold.
The Statement of Rights explains how consumers should be treated when receiving care and says that they can expect providers to uphold their rights to:
- Independence, autonomy, empowerment and freedom of choice
- Equitable access
- Quality and safe funded aged care services
- Respect for privacy and information
- Person-centred communication and ability to raise issues without reprisal
- Access advocates, significant persons and social connections
The Statement of Principles says what older people should be able to expect from the aged care system:
- It should be person-centred
- It should value workers and carers
- It should be transparent, sustainable and represent value for money
- It should always continue to improve
Supported Decision-Making
The new Act also creates a framework for supported decision-making and advocacy. Consumers will be able to nominate individuals to assist them in their decision-making, such as requesting documents and communicating information about the will, preferences and decisions of the consumer. Supporters will be registered by the System-Governor and must abide by a set of duties and rules, including acting honestly and respecting the will, preferences and personal, cultural and social wellbeing of the consumer.
If a supporter is also given decision-making power under a state or territory law, this can be reflected under the new Act by registering them as a decision-making supporter. The System-Governor may also register a supporter as having decision-making power in exceptional circumstances, such as when no suitable guardian can be found.
The new Act will also create criminal penalties for those who dishonestly use their position as a supporter, or information they have been given as a supporter, to gain advantage or cause disadvantage to the consumer.
A new way for older Australians to engage with the Aged Care system
The new Act will create a single-entry point for older Australians accessing aged care services, which will be administered by the System Governor for Aged Care. There will also be changes to funding arrangements for residential care to make the Aged Care sector more sustainable. These include:
- Increasing contributions from some older people entering the Aged Care system for the first time
- Changes to accommodation pricing, including an increase to the maximum room price and indexation of daily accommodation payments
- Providers will be able to retain 2% of the refundable accommodation deposit for up to five years
A new way of funding home care services will also be introduced, known as Support at Home. Under this scheme, the government will fund all clinical care services, with individual contributions from home care recipients being required for independence care (such as showering and getting dressed) and everyday living services (such as cleaning and gardening).
New requirements for providers of Aged Care
The new Act will make big changes to the way providers of Aged Care are regulated and the expectations around the care they provide.
Here’s what providers need to know:
- There will be a new statutory duty for registered providers of Aged Care (and certain responsible persons) to ensure their conduct does not cause adverse effects to the health and safety of individuals, as well as a compensation pathway for individuals who suffer serious injury or illness because of a provider breaching their duty.
- The delivery of high quality care will be a condition of provider registration, requiring providers to consider the Statement of Rights and Statement of Principles as well as putting the consumer first when delivering care.
- There will be new worker screening measures, and a worker screening database will be established similar to that used in the NDIS.
- There will be new Quality Standards.
- The Aged Care Quality and Safety Commission will be given powers to enter premises without a warrant to protect the health, safety or wellbeing of a consumer.
- An independent Complaints Commissioner and Inspector-General of Aged Care will be established.
- There will be new whistleblower protections and requirements.
- The new Act contains strengthened investigatory powers under the Regulatory Powers (Standard Provisions) Act 2014.
What do providers need to do to prepare?
Providers should familiarise themselves with the new requirements under the Act, particularly the statement of rights, the statement of principles, the new statutory duty and the new Standards. In addition, providers should consider the following:
- Review complaints mechanisms currently in place and consider how they could be adapted to meet the new whistleblower requirements.
- Does their service delivery put consumers first and is it compatible with the statement of rights and principles?
- What measures can they put in place to ensure their service (and all responsible persons) are consistently complying with the statutory duty to not cause adverse effects to the health and safety of individuals?
