On 11 May 2021, in response to the final report of the Royal Commission into Aged Care Quality and Safety (Royal Commission), the Australian Government announced a package of support and reform to aged care as part of the 2021-22 Budget.
The Government’s response to the Royal Commission is a five year–five pillar aged care reform plan addressing home care, residential aged care services and sustainability, residential aged care quality and safety, the workforce, and governance.
The Department of Health (the Department) certified that Independent Reviews undertook a process and analysis equivalent to a Regulation Impact Statement (RIS) for both the immediate response to the final report of the Royal Commission and for the package announced in the 2021-22 Budget. The Department estimated increases in annual average regulatory costs of $5.16 million and $1,986.63 million respectively. The Department estimates a significant contributor to regulatory costs will be the introduction of mandatory 200 care minutes per resident per day in residential aged care to take effect from 1 October 2023.
The Office of Best Practice Regulation (OBPR) does not assess the quality of Independent Reviews and RIS-like documents used in lieu of a RIS, but does assess relevance. The OBPR assessed that the options analysed in the certified reviews are sufficiently relevant to the Government’s proposed responses.
For reforms to residential aged care funding arrangements, the Department prepared and certified a RIS. The OBPR’s assessment was that the quality of the regulatory impact analysis in the RIS was consistent with good practice. The Department estimates that the annual average regulatory savings will be $224.77 million.
Update - July 2022
On 14 July 2022, the Department of Health and Aged Care provided the OBPR with supplementary impact analysis certified in lieu of a RIS with respect to implementation and evaluation. The analysis related to a new requirement for approved providers of residential care to have at least one registered nurse on site and on duty at all times and an increase in requirements with respect to average minimum care minutes. This supplementary analysis accompanied the text of the Explanatory Memoranda for the Aged Care Amendment (Implementing Care Reform) Bill 2022 introduced into Parliament on 27 July 2022. The OBPR did not assess these changes.
Update - November 2022
On 18 November 2022, the Department of Health and Aged Care provided the Office of Impact Analysis (OIA, formerly OBPR) with supplementary impact analysis certified in lieu of an Impact Analysis (IA, formerly RIS) with respect to implementation and evaluation. The analysis related to proposed subordinate legislation to enact governance and reporting arrangements for approved providers of Commonwealth-funded aged care: the Aged Care Legislation Amendment (Governance and Reporting for Approved Providers) Principles 2022. The OIA subsequently acknowledged the relevance of the materials for the purposes of the Australian Government Guide to Regulatory Impact Analysis, and the supplementary analysis accompanied the text of the Explanatory Statement for the subordinate legislation.