Long-awaited reforms to the Home Care system, due to come into effect on 1 July next year have been delayed by 12 months.
The changes aim to moderate how much older Australians pay for home care services and stop providers from overcharging for services.
So, what are the changes, and why have they been delayed?
What are the changes?
Currently, home care providers charge for services under individual pricing systems. This has led to accusations that some providers have been overcharging older Australians for services.
In a bid to address this issue, the government plans to introduce a “National Efficient Price” in its new Support At Home program. The National Efficient Price will apply a set maximum price for home care services. This aims to ensure that older Australians pay a fair price for the services they use.
What is the reason for the delay?
The government says the delay is a result of feedback from the opposition and service providers about the need to provide continuity of care and avoid service disruption. Service providers had previously warned the government that they would need at least twelve months of lead-in time to implement the changes.
The government has committed to providing full details about the new pricing structure in February or March next year, just three months before the changes were due to come into effect. Aged care advocates argued this would not have allowed enough time to implement the reforms effectively. For example, providers say they require time to update their IT systems, train staff and inform clients of the new pricing structure. Therefore, rushing the implementation of reforms could lead to unintended consequences.
The delay does not impact other aged care reforms introduced by the government, including increased means-testing for wealthy aged care residents, which are still due to come into effect on 1 July next year.
What is the impact of the delay?
The delay means that providers of home care services will continue to set their own prices until July 2026.
To minimise the impact of the delay, the government will introduce additional consumer protections over the next year. These measures are designed to ensure that prices are monitored and remain fair during the transition period.
However, critics argue that repeated changes and uncertainty around aged care reforms are creating unnecessary anxiety among older people. This follows repeated delays to the passing of the Aged Care Act, which led to fears it may not be passed prior to the next Federal election.
“It’s creating chaos for providers; it’s also creating a lot of anxiety for older people,” said Adrian Morgan, general manager of Brisbane-based non-for-profit home care provider Flexi Care.
Despite this, some advocates argue that given the magnitude of the reforms, it was better to delay them than rush the process.
“We fully support the introduction of a new rights-based Aged Care Act, but implementing reforms of such magnitude will take time,” said Aged & Community Care Providers Association chief executive Tom Symondson.
“We only get one chance to get this right – failure would be a disaster.”
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Article References
Ison, S & Down, R (13 December 2024) ‘Labor delays reform measure amid home care sector uncertainty’, The Australian, accessed 17 December 2024.
Wolf, J (15 October 2024) ‘CHA calls for delayed start to Support at Home’, Australian Ageing Agenda, accessed 17 December 2024.