Announcement date
16 September
Link to announcement
Problem being addressed
The Royal Commission into Aged Care Quality and Safety (the Royal Commission) found that at least 1 in 3 people accessing residential aged care and home services have experienced substandard care, and that the objectives, regulation and funding of the Australian aged care system is complex and piecemeal.
These issues are expected to compound over the coming years due to Australia’s changing demographics, patterns of disease and dependency, and community expectations for quality care of older people – placing pressure on the aged care workforce and funding to support growing demand for aged care services. For example, the Royal Commission identified that the number of Australians aged 85 years and over is projected to increase from 515,700 in 2018–19 (around 2.0% of the Australian population) to more than 1.5 million by 2058 (around 3.7% of the population). Further, over this time the number of working age people (15-64 years) for every Australian aged 65 years+ is projected to decrease from 4.2 in 2019 to 3.1 in 2058.
Proposal
The Aged Care Bill 2024 intends to give effect to the Government’s election commitments to deliver improved transparency and accountability, and protect the safety, dignity and wellbeing of people accessing aged care services. The Bill delivers on a number of Royal Commission recommendations, including additional regulatory requirements on aged care providers, a new Support at Home program, and a new funding models for specialist programs. The Bill also seeks to clarify obligations on aged care providers and workers with a focus on continuous improvement in delivery of high quality care and services, and ensure the sustainability of the aged care system.
Assessed Impact Analysis outcome
Impact Analysis Equivalent
Assessment comments
The Office of Impact Analysis (OIA) does not assess the quality of reviews and documents used in lieu of an Impact Analysis (IA). Impact Analysis Equivalents (IAE) are assessed by the OIA for relevance to the recommended option(s) and for the coverage of the seven IA questions.
The OIA assessed that the Legislated Review of Aged Care, the Royal Commission into Aged Care Quality and Safety, the Australian Government response to the final report of the Royal Commission into Aged Care Quality and Safety, and the Final report of the Aged Care Taskforce, together with the supplementary analysis provided on IA questions four, six and seven are sufficiently relevant to the proposals to meet the requirements of the Australian Government Guide to Policy Impact Analysis.
Regulatory burden
The Department of Health and Aged Care estimates these measures will result in a decrease in regulatory costs of around $4.8 million per year, averaged over ten years.