Aged Care Bill May Not Encourage People to Stay Home as Intended, Industry Warns

The Senate Committee on Aged Care Reforms heard testimonies from prominent aged care providers, unveiling concerns regarding the proposed Aged Care Bill.
While the reforms are largely embraced, many providers have raised alarms about the practical challenges of implementing these changes, especially in rural and regional areas.
Their insights reveal deep-seated issues, including staffing shortages, regulatory complexities, funding inadequacies, and the impact of the new “Support at Home” program.
In September, Prime Minister Anthony Albanese announced a $9.9 billion aged care package, including $5.6 billion for reforms and $4.3 billion for home support, effective from July 1, 2025.
Taxpayers will cover 100 percent of clinical care services, while the lifetime contribution cap for non-clinical care will rise from $78,000 to $130,000, ensuring seniors incur no additional costs.
But representatives worry about the viability of the transition to the new program. This, they argue, will increase demand for residential care instead of supporting people to remain in their homes, as intended.
“The proposed limits of one hour a week for domestic services raise questions about whether the term ’support’ is appropriate,” Sheldon-Stemm said.
Providers also highlighted the complex transition that will involve upgrading IT systems, retraining staff, and updating care plans for clients.
Stephanie Buckland, CEO of Amana Living, explained that the changes would require significant time and resources.
Providers pointed out that the estimated shortage of between 10,000 to 20,000 RNs in the aged care sector is creating a severe strain on service delivery, particularly in rural areas.
Mark Sheldon-Stemm, a leading consultant and CEO of aged care service Valley View, commented on the difficulties of meeting the staffing requirements set by the bill under the current circumstances.
“Many rural providers are unable to recruit RNs and rely heavily on ENs to provide nursing care. The Act should recognise both registered and enrolled nurses as part of the nursing workforce,” he said.
Roulé Jones, CEO of retirement village services Bethanie, stressed that rural aged care facilities will struggle to meet the staffing targets set by the bill without recognising ENs.
The bill’s provisions demand extensive reporting, which providers argue is both time-consuming and resource-draining.
For residential aged care facilities, 1,236 pieces of information need to be collected to meet the Quality Commission’s accreditation processes. Similarly, home care providers are required to submit 1,092 pieces of evidence.
Sheldon-Stemm criticised the regulatory framework as “bureaucratic box ticking” that fails to improve the quality of care.
He stated, “The regulatory system proposed is doomed to failure. The overwhelming evidence collection does not guarantee improved quality on the floor of aged care facilities.”
The sentiment was echoed by other providers, who believe the focus on compliance is detracting from their ability to focus on actual care delivery.
Providers also raised concerns that the increasing compliance requirements would take time away from frontline care staff.
Travel costs and staffing shortages in these areas often lead to higher operational expenses, which are not adequately addressed by the current funding structure.
Buckland urged for an increase in the value of home care packages and pricing caps in regional areas to account for these additional costs.
“We are concerned that the competitive grants program for regional services may not be enough to cover the extra costs. Travel to clients and other expenses in rural areas need to be factored into the funding model,” she said.
Providers also emphasised the need for capital investment to refurbish ageing facilities and meet the growing demand for residential aged care.
They called for grants and low-interest loans to support developments, particularly in rural areas.