Labor’s aged care bill a ‘significant divergence’ from royal commission, says Inspector-General

Labor’s $5.6bn aged care reform risks falling short of what was recommended by the royal commission and safeguards elderly Australians’ rights in a purely ‘aspirational’ way, the Inspector-General of Aged Care has warned.

Labor’s aged care bill is a ‘significant divergence’ from what was recommended by the royal commission. Picture: Kari Bourne / Sunshine Coast Daily

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Labor’s $5.6bn package of aged care reforms risk falling short of what was recommended by the royal commission and puts in place an approach to safeguarding elderly Australians’ rights that is purely “aspirational”, the Office of the Inspector-General of Aged Care has warned.

The government last month secured a guarantee from the Coalition that it would not make changes to the financial sustainability framework contained in Labor’s aged care bill, clearing the way for the introduction of the legislation to parliament.

Before the bill can pass and enforce Labor’s proposed changes – such as an increase in the cost of non-clinical care for residents with means – a parliamentary committee will spend three months investigating potential issues with the legislation.

The opposition’s concern that there remains uncertainty surrounding the bill because of “unsighted rules and mechanisms” sitting outside of the legislation were echoed by the Aged Care Inspector-General in its submission to the committee.

“The Office has observed that a significant number of critical clauses throughout the Bill are reliant upon additional provisions to be set out in the rules,” the submission from the Inspector General’s Office, currently headed up by former Council on the Ageing chief executive Ian Yates, said.

“In the absence of those rules, there is a degree of uncertainty around how many clauses will operate.”

The submission also raised alarm with Labor’s “significant divergence” from the aged care program recommended by the royal commission in 2018.

“As discussed in the 2024 progress report, the royal commission recommended a new aged care program combining current home and community programs and residential care should be established,” the submission stated.

“In contrast, the bill will provide the legal basis for the new support at home program, which is to commence from 1 July 2025, while residential care is to remain a stand-alone service category with different access to service.”

The Inspector General’s Office – which is responsible for overseeing the administration, regulation, and funding of the aged care system by government – said Labor had fallen short of implementing the sorts of safeguards envisaged by the royal commission.

“The office does not consider the approach taken in the Bill to embed high quality care meets the standard envisaged by royal commissioners,” the submission said.

“The office considers the approach taken in the bill to safeguard individuals’ rights to be largely aspirational. In particular, the Office is concerned that it will not implement a rights-based framework as clear or as robust as royal commissioners envisaged, because the pathways available to individuals to understand and assert their rights lack the necessary vigour to drive real change.”

The committee will begin its public hearings in Canberra tomorrow, before travelling to Tasmania, Brisbane, South Australia, NSW, Melbourne, Perth and Darwin to hear from the sector on Labor’s legislation.