Aged care sector backs delay for major reform to the industry

Labor is pumping the brakes on sweeping “once-in-a-generation” reforms to a key sector, delaying a major part of the Albanese government’s agenda.

The Albanese government is delaying its ‘once-in-a-generation’ aged care reforms. Picture: NewsWire / Martin Ollman

The Albanese government is delaying its “once-in-a-generation” aged care reforms to give providers more time to prepare.

Bolstering regulation, simplifying in-home care services and increasing how much wealthier retirees pay toward non-clinical services were among the key changes set to kick in on July 1.

But after months of warnings from the sector, Health Minister Mark Butler announced on Wednesday Labor was pushing the start date back by four months.

“We have been clear that we want to successfully deliver these reforms in the right way,” Mr Butler said in a joint statement with Aged Care Minister Sam Rae.

“We have received advice from the sector and experts that more time will improve the delivery of these reforms and minimise disruption.

“Following careful consideration, the government will recommend to the Governor-General ... that she proclaim the commencement of the new Aged Care Act to be 1 November 2025.

“This will allow more time for aged care providers to prepare their clients, support their workers and get their systems ready for the changes.

“It will also give us more time to finalise key operational and digital processes, and for parliament to consider supporting legislation that will enable the new act to operate effectively.”

The Albanese government is delaying its ‘once-in-a-generation’ aged care reforms. Picture: NewsWire / Martin Ollman

Treasurer Jim Chalmers told reporters the delay would have a “modest” $900m impact on Commonwealth coffers over the next four years.

The sector has welcomed the delay, with the Older Persons Advocacy Network (OPAN) saying it switched its position in recent weeks due to concerns “older people don’t have the necessary information to make informed choices”.

“Until now, OPAN has been steadfast in its call for the Act to be implemented, as promised, on 1 July 2025, because older people can’t get the aged care they need without it,” OPAN chief executive Craig Gear said.

“However, over the past weeks it has become increasingly apparent that, while the macro design of the reform is solid, older people don’t have the necessary information to make informed choices at an individual level, particularly around the new Support at Home program.

“We are also concerned that the appropriate systems aren’t yet in place to ensure continuity of care and services for older people during the transition.”

Aged care providers have been warning for months they need more time to prepare their clients for the reforms. Picture: Supplied

The Council on the Ageing (COTA) also welcomed the move.

“We wanted a 1 July start date so people didn’t have to wait any longer for their rights than they already have, but ultimately, we concluded it’s far more important to get it right and ensure that older people understand what will happen for them,” COTA chief executive Patricia Sparrow said.

Ms Sparrow called on the Albanese government to continue releasing “extra packages of support for people living at home and reduce the home care package wait list even with the delayed start for the new Support at Home program”.

Meanwhile, the Coalition has blasted the delay as “a clear admission of failure”.

“The government was warned,” opposition health spokeswoman Anne Ruston said in a statement.

“We put forward a responsible, measured amendment to ensure that their reforms could be rolled out safely and effectively, and Labor opposed it.

“The aged care sector has been crying out that the 1 July deadline was not deliverable without causing serious negative consequences.

“Why has it taken the government until five minutes to midnight to alleviate the stress and uncertainty they have inflicted?”