Additional Comments - Australian Greens

1.1The Australian Greens thank all participants in the inquiry process, particularly advocates of older people who have worked tirelessly not only on these Bills, but on the passage of the Aged Care Act 2024 and the Royal Commission into Aged Care Quality and Safety.

1.2As with the passage of the Aged Care Act 2024, the Australian Greens hold concerns about how this process has unfolded to date. The changes proposed by the Aged Care and Other Legislation Amendment Bill 2025 and simultaneous release of the final draft of the Rules have resulted in condensed timeframes for consideration and scrutiny, and point to a broader culture - identified by older people, advocates and aged care providers alike - of rapid and opaque policymaking.

Reforming the aged care system is a complex and critical endeavour that requires careful consideration and thorough consultation with stakeholders and the public to ensure the proposed laws work as effectively and efficiently as possible … Nevertheless, the Law Council is disappointed by the short timeframe that has been provided for review, noting the Aged Care and Other Legislation Amendment Bill 2025 contains a range of reform measures. In our view, having a one-week timeframe for written submissions is unreasonable, and significantly limits the ability for peak bodies to meaningfully consult with their membership.[1]

1.3As the Chair’s report notes, the Aged Care Royal Commission’s final report found that for too long, legislation had focussed on the funding requirements of aged care providers rather than the genuine care needs of older people.[2]The Royal Commission’s final report recommended that a new Aged Care Act be developed to put the rights of older people at the very centre of their care.

1.4It is the view of the Australian Greens that the Government has chosen to pursue a new Act without due regard for the myriad other aspects of the Royal Commission report, specifically those that relate to the dangers of financialisation of care, and the prioritisation of providers’ interests over those of older people.

1.5The Greens welcome aspects of this Bill that seek to address valid community concerns, including removing the ability for the rules to proscribe caps for cleaning and gardening services. Likewise, many aspects of this Bill make technical changes to the Aged Care Act 2024 that are necessary for the proper functioning of Australia’s new aged care system.

1.6The Greens hold concerns with some aspects of the Bill that appear to be designed to optimise the abilities of providers to charge aged care recipients fees, rather than ensure vulnerable older people are not facing unreasonable costs. As has been raised in several submissions, the amendment to how cancellation policies are enacted risks older people being charged ‘no show’ fees for circumstances that are unavoidable, such as emergency admission to hospital.

There will also be emergency situations and/or extenuating circumstances (such as a person living on their own being admitted to hospital) where cancellation fees should not be charged. Particularly in the circumstance where the participant is recorded as a “no show” once but is unable to notify the provider – they will continue to be charged the no show fees. This will decrease the value of their package.[3]

1.7There should also be far greater scrutiny over the proposed ability for the Minister to make decisions under a ‘Henry VIII’ rule-making power. While the establishment of a new system holds risks, and it is arguable that the Minister must be able to act to ensure the continuity of service, greater scrutiny is required to ensure that rules are made in the interests of older people.

1.8The Greens appreciate and deeply value the input of First Nations groups to this inquiry. As stated by NATSIAACC, the design of the new aged care system has raised ‘significant concerns regarding its cultural responsiveness, equity protections, and the inclusion of Aboriginal and Torres Strait Islander governance, voice, and data rights in both design and delivery.’[4]

1.9Stakeholders have also raised concerns that the Bills do not act to ensure that payments received under redress schemes including those related to Stolen Generation schemes or civil payments received through court cases for sexual abuse are excluded under income and asset tests.[5]

1.10The continuing rationing of care and a growing divide in financial incentive for providers to accept residents unable to afford a Refundable Accommodation Deposit is cause for serious concern.

With occupancy continuing to increase due to demand exceeding supply to now be at historic high levels, this significant disparity between the Accommodation Supplement and a DAP will potentially be detrimental to residents of lower financial means where the decision of which potential resident is accepted may be driven by a financial assessment.[6]

1.11In their submission to this inquiry, Uniting NSW.ACT stated:

From 1 November, residents that meet the means testing thresholds will be required to contribute more toward their accommodation. However, this may incentivise providers (especially those under financial strain) to prioritise residents who can pay more, potentially disadvantaging those without means.[7]

1.12This lack of action on the broader crisis in aged care was noted during the passage of the Aged Care Act 2024, with these Bills doing little to address the fundamental structures in place that led to the Royal Commission.

1.13The Australian Greens welcome small changes and technical improvements, but we do not expect the reforms made by this Government to prevent, or even meaningfully delay, the onset of a state of rolling crisis in Australia’s aged care system. As aged care expert Professor Kathy Eagar AM stated in her submission to the Aged Care Bill 2024 inquiry:

My overarching comment is that the new Aged Care Act simply entrenches the existing aged care system, albeit with minor wording and technical changes. To describe this as the biggest reform in decades is simply misguided. The changes being proposed are marginal improvements on the status quo. Any marginal improvement is welcome. But these changes do not address the fundamental problems underlying aged care. It is inevitable that aged care will be back in crisis within a few years.[8]

1.14With an ageing population, the scale of care delivery is not matching the growing demand. Delays to programs that support care at home, as well as the rationing of residential aged care, have very real affects on older people and the loved ones that care for them. Quality of life deteriorates, people not receiving care at home become more susceptible to illness and injury, and residential aged care becomes not a place of care and respect, but a waiting room for those reaching the ends of their lives.

1.15The key driver for aged care reform should never be ‘budget repair’ or provider profitability, it must be to improve care, quality and enforcement in the sector after the shocking revelations of the Royal Commission.

1.16The elderly are not commodities; they are human beings. It should be an obligation of any moral society for the government to ensure that older people can get the care that they need.

Senator Penny Allman-Payne

Deputy Chair

Footnotes

[1]Law Council of Australia, Submission 17,p. 1.

[2]Royal Commission into Aged Care Quality and Safety, Final Report - Care, Dignity and Respect: Volume 1, March 2021, p. 32.

[3]COTA Australia, Submission 14, p. 5.

[4]NATSIAACC, Submission 6, p. 7.

[5]The Healing Foundation, Submission 18; OPAN, Submission 2.

[6]StewartBrown, Submission 15, p. 4.

[7]Uniting NSW.ACT, Submission 16, p. 2.

[8]Professor Kathy Eagar, Submission to Community Affairs Legislation Committee Inquiry into the Aged Care Bill 2024 and related initiatives(Submission 131), p. 2.