Senate Committee calls for sweeping reforms and more reviews of aged care in Australia

The Senate Standing Committee on Finance and Public Administration Report into Residential and Community Aged Care in Australia, released on 29 April, has called for sweeping reforms of aged and community care.

With more than 31 recommendations, the report has called for yet another review of the Aged Care Act, benchmarking of aged care costs and new aged care advisory bodies reporting directly to the Minister for Health and Ageing to consider on an ongoing basis, current and future challenges to the aged care sector.

While the wholesale review is occurring, it has recommended that the temporary Conditional Adjustment Payment (CAP) funding, intended as a stop gap measure to top up the current funding indexation, continue.

The Minister for Ageing, Justine Elliot welcomed the release t of the Senate Report, saying the Australian Government will consider its recommendations and deliberations.

While noting that the report would also be considered in the light of the budget, Mrs Elliot is likely to inflame the aged care sector with her comments that it is “relatively, although, of course, not completely, sheltered from the effects of the global financial crisis in comparison with other sectors. That is because the income stream in aged care is largely underwritten by the government – to the tune of about 70% in residential care”.

“The resident contributions are underpinned by the aged pension and to the extent that older people are able to pay less as the government pays more, so there is no need for customers to stay away from aged care on the grounds of costs,” said Mrs Elliot.

The Australian Greens welcome the release today of the report and have urged the Federal Government to start implementing the recommendations immediately.

“This report is a wake‐up call,” Australian Greens spokesperson on Health and Ageing, Senator Rachel Siewert said.

“This report has confirmed that urgent reform of aged care in Australia is needed. We must both address the immediate funding issues and also ensure we have a viable aged care system for the future.

“Many issues need addressing, including: lack of aged care beds; better planning; lack of staff; and poor payment of staff.

“It is particularly concerning that the Commonwealth Department of Health and Ageing has refused to recognise that there is any existing problem in aged care.

“It is clear a lot of work needs be done to fix the way the Federal Government funds aged care, including the level of funding to providers for capital works and care; staffing; and for developing aged care services to meet future demand,” she said.

Aged Care Association Australia (ACAA) warmly welcomed the release of the Report.

“In the context of industry wide concern about diminishing returns and financial viability of the aged care industry, the Senate Inquiry into Residential and Community Aged Care has provided an opportunity for a thorough investigation of the current difficulties being faced by the industry and a clear acceptance by the Inquiry that the issues raised by the industry are legitimate and substantial,” said Rod Young, ACAA chief executive officer.

“The Inquiry clearly recognised the need for the establishment of a process to review the future structure and delivery models that aged care will require. This recognition is highly pleasing.

“The impact of ageing on the Australian health system and the broader economy is of such magnitude that the formation of a body such as a national aged care forum to better inform future government policy, is essential,” said Mr Young.

“The Committee’s recognition that quality data that will better inform Government decision making and provider planning is essential was a welcome recommendation from the Inquiry,” he said.

“ACAA applauded the Inquiry’s recommendation that the suggested taskforce undertake an analysis to establish a benchmark of care costs, which is fundamental to determine what is a reasonable expectation of Government and the community as to the standards of care and accommodation that should be provided and what should be paid for that care and accommodation,” he concluded.