Skip to main content

Increasing Choice in Home Care

Regulation Impact Statement – Department of Health

On 11 February 2016, the Minister for Aged Care introduced the Aged Care Legislation Amendment (Increasing Consumer Choice) Bill 2016 to give effect to the first stage of the home care reforms announced in the 2015-16 Budget. Under the changes funding for subsidised home care will follow the consumer, rather than the provider. The effect of the changes is that individuals will have greater choice of home care provider and increased flexibility to change providers. The main changes for home care providers are:

  • Providers will no longer need to apply for and hold allocated home care places;
  • Processes for becoming an approved provider will be simplified; and
  • Providers will be required to transfer unspent funds where a consumer changes provider and return unspent funds when the consumer leaves home care.

The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Department of Health as compliant but not best practice. To be best practice the RIS needed to more fully demonstrate the nature of the problem, provide a broader scope of analysis of impacts and detail the practical impacts of the changes. The RIS estimates the average annual regulatory cost saving at $4.5 million a year. The OBPR has agreed to the regulatory cost saving.