2024 saw the beginnings of a major transformation for the aged care sector. Critical legislative changes, strengthened quality standards, and the development of new schemes and programs were part of the many shifts the sector felt the rumblings of.
As we look ahead to 2025, let’s review what has changed and what remains to come.
The new Aged Care Act was developed in response to recommendations from the Royal Commission on Aged Care Quality and Safety.
The key change between previous legislation and this amended one is that the Aged Care Act of 1997 was structured around provider approval and funding, while the new Act is person-centred and rights-based.
As part of the proposed legislation, the strengthened Aged Care Quality Standards are being released to put the older person and their rights at the centre of everything the aged care sector does.
Originally slated for release on 1 July 2024, the Aged Care Bill 2024 will now come into effect on 1 July 2025. This raised criticism and concern from many in the aged care sector, with mixed feelings about the timing of these changes.
Providers felt the proposed changes were too soon to implement and could lead to ballooning costs. Due to the pace at which these reforms were meant to be implemented, providers also expressed concerns over the reforms’ intention to drive quality care and safety.
Minister for Aged Care Anika Wells released a statement saying, “We heard strong feedback that the proposed new Aged Care Act is a once-in-a-generation opportunity for systemic reform that we must get right.”
The bill finally passed through Parliament on November 25th.
As part of the updated legislation, the Aged Care Quality and Safety Commission will also implement the strengthened Aged Care Quality Standards.
The most significant change will be that the Standards decrease from eight to seven. The strengthened Standards will include the following:
The reasoning behind this change was to make the Standards more person-centred and ensure that providers and workers can clearly understand their obligations. It also supports a more tailored approach, moving away from the one-size-fits-all model of the current standards.
The Standards and their requirements will then differ from aged provider to provider based on the nature of the services provided and registration levels. They will also have measurable outcomes against which providers will be audited, with a series of suggested actions to support these outcomes, making them easier to implement.
READ MORE: etrainu releases new Aged Care eLibrary in line with the strengthened Aged Care Quality Standards
A cornerstone of the new Aged Care Act, the Statement of Rights was also introduced.
It outlines the rights of older people when it comes to accessing aged care services, seeking to take a person-centred approach and place the needs of older people at the centre of the aged care system.
Per the Statement of Rights, every older individual seeking support services has the right to:
Providers and workers must ensure their actions are consistent with the Statement of Rights.
On Tuesday, 14 May, the Albanese government announced its 2024-25 financial year budget.
For the aged care sector, the government aimed to use the budget to focus on improving the sector by spending an additional $2.2 billion to deliver reforms, provide more home care packages, and raise wages for aged care workers.
The total package promises to deliver the following:
While many have welcomed the additional funding, there are still some concerns from the community. A report from ACCPA found that 92% of aged care providers selected government funding as a core challenge facing the aged care sector.
Most notably, the promise of increased wages/wage growth has been a sore point for aged care workers, who have been “bitterly disappointed” at the delays in pay rises.
However, the additional funds from the budget could mean positives, including:
Despite plans to enact the updated legislation, the Aged Care Act will only come into force on 1 July 2025.
This will build on the previous implementations, which have been actioned in response to around 60 Royal Commission recommendations. This launch date for the new Act will coincide with the Support at Home program to give everyone in the sector more time to prepare for the changes.
The new Support at Home program will begin on 1 July 2025, replacing the existing Home Care Packages Program and Short-Term Restorative Care (STRC) Programme.
The Commission has stated the program aims to help older people live independently at home for longer. The Commission estimates that 1.4 million people in Australia will benefit from this program by 2025.
The program is said to provide more tailored support with access to eight levels of funding of up to $78,000 per year.
It covers:
Many expressed uncertainty at the prospect of this new program; however, the Commission has assured providers and older people alike that transitional arrangements are in place for those who were approved for a package at 12 September 2024.
As we go deeper into 2025, we expect more details of the program to emerge—and hopefully, with them, more clarity.
One of the most anticipated changes, for aged care workers at least, is the increase in wages.
Aged care workers who provide home care services are set to receive wage increases as outlined in the 2024-25 federal budget. Providers must pass on the wage rise to their workers, which may mean adjusting prices for care and services provided. For some older people, this means an increase in their package subsidy.
Workers have welcomed the news, as union efforts and lobbies have sought to pressure the Australian government for better and fairer wages, given the importance and impact of such work.
The Australian Government will support this wage growth from 1 January 2025.
The aged care sector is on the cusp of a pivotal moment of transformation. However, these changes have been met with challenges. Whatever the differences and disagreements between providers and legislators, there is a sentiment that the focus on providing person-centred and rights-based care is long overdue.
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