Aged care reforms: what to expect this year
This year we will see the continued rollout of significant aged care reforms. The Fair Work Commission’s Work Value Case delivered a 15% pay rise for aged care workers last November but will continue hearings later this month to consider...
This year we will see the continued rollout of significant aged care reforms.
The Fair Work Commission’s Work Value Case delivered a 15% pay rise for aged care workers last November but will continue hearings later this month to consider increasing the rise to 25%.
The government has promised to fund the pay rises but has only committed to a 10% increase from 1 July 2023, and a further 5% increase from 1 July 2024. Cash-strapped providers can only deliver pay rises the government is funding, so these developments will be closely observed.
The requirement to have registered nurses on site 24/7 will commence on 1 July 2023. From 1 October 2023, residents will have to receive 200 care minutes, including 40 from an RN. Though some providers are already operating at these levels, many will find the new requirements challenging, due in no small part to severe staff shortages around the country.
Our friends at law firm MinterEllison, Sacha Shannon and Penelope Eden, have provided the timeline below of what to expect in the reform process this year.
Please note: Changes may occur throughout the year, and we expect further measures to be announced in the May 2023 Federal Budget.
| Key reforms | |||
| Reform | Date | Detail | What to consider |
| Work Value Case | Next hearing commences 28 February 2023 | On 4 November 2022, the Fair Work Commission (FWC) awarded an interim increase of 15% for direct care workers in the Aged Care and SCHADS Awards, and aged care nurses under the Nurses Award. The FWC will continue to consider a 25% increase for other workers in the sector, and a further increase for direct care workers. | Providers should monitor the progress of the Work Value Case and consider its potential impacts for workforce planning. |
| 24/7 RNs | 24/7 RN requirement commences 1 July 2023 | From 1 July 2023, it will be mandatory to have a registered nurse onsite 24-hours, 7 days a week in residential aged care facilities. | Part of the challenge for providers for 2023 will be building a model for sustainably growing care minutes over the next two years. |
| Care Minutes | Requirement to deliver 200 care minutes, 40 RN minutes, commences 1 October 2023 | From 1 October 2023, it will be mandatory to deliver an average of 200 minutes per resident per day, including 40 registered nurse minutes. This will increase to 215 minutes, including 44 RN minutes from 1 October 2024. | Providers should consider what they are doing to prepare their workforce and the organisation more generally for these new requirements, and take stock of whether they are on track to meet the requirements when they commence. |
| Reform | Date | Detail | What to consider |
| Dementia Action Plan | Consultation closed 31 January 2023.
Plan expected to be launched in 2023 |
The Action Plan includes 'proposed actions' for consideration, but no enforcement or implementation details. A 2023-2026
'implementation blueprint' containing further details will be published. The proposed actions in the draft action plan include: (a) embedding mandatory core competencies for medical, nursing, allied health, disability and aged care workers, including as part of the Aged Care Quality Standards; (b) undertaking a national audit of dementia training for medical, nursing, allied health, disability and aged care workers; (c) continuing to implement measures to increase the size of the aged care workforce |
Providers should consider how to align their practice with the principles in the Action Plan |
| Inspector General of Aged Care | Consultation closed 27 January 2023
Bill introduced mid-2023 If passed, Act commences 1 July 2023 |
The Inspector-General of Aged Care Bill (Bill), currently published in draft form, responds to Recommendation 12 of the Royal Commission's Final Report to establish an Inspector-General of Aged Care to improve transparency and accountability in the sector. The
Bill would empower the Inspector-General to conduct reviews and investigations of, and report on and monitor, systemic issues which affect the Australian Government’s funding, regulation, administration, or delivery of aged care. |
The Bill is unlikely to have significant impacts on the day to day operation of Providers, however includes broad information gathering powers, meaning providers may face an additional administrative burden of complying with requests for information. The Consultation Paper on the Exposure Draft of the Bill provides 'we would expect that the Inspector-General would only use these powers on parties delivering age care directly in exceptional and rare circumstances.'
|
| ACQSC Capability Review | Review commenced October 2022
Final Report expected April 2023 |
In line with Recommendations 10 and 104 from the Royal Commission, David Tune AO PSM, former secretary of the Department of Finance and Deregulation, is leading a capability review into the Commission. Part of the terms of reference of the review involves a consideration of whether the Commissioner and the Commission have sufficient legislative powers, regulatory frameworks and access to data to appropriately investigate and resolve complaints in a timely manner and to undertake compliance monitoring and enforcement activities. | Given the scope of its terms of reference, the findings of the review could influence the development of the new Aged Care Act.
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| Revised Quality Standards | Consultation closed 25 November 2022
No start date published |
The Commission has released a detailed draft of revised Aged Care Quality Standards to replace the existing 8 Aged Care Quality Standards, to be implemented alongside the new Aged Care Act. It is anticipated that all providers subject to the Quality Standards would be required to demonstrate their performance against standards 1 to 4, and some providers would also be required to demonstrate their performance against standards 5 to 7, clinical care, food and nutrition, and the residential community, based on the types of services they deliver. | Providers will be required to meet the new Aged Care Quality Standards, and should monitor the space for developments.
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| Engagement processes – In-home Aged Care Reform | Target Group and Clinical Advisory Group Consultation –January/February
Prototype Assessment Tool Training and Trial – March – June Aged Care CEO and older people consultation – June/July |
The Australian Government will be engaging in extensive consultation in preparation for designing and implementing a new in-home aged care program. The Australian Government is returning to the time frame of 1 July 2024, put forward by the Royal Commission, to deliver a reformed and improved in-home aged care program. This extends the date from July 2023. | Providers should monitor this space for further consultation and preliminary guidance. |
| Financial and Prudential
Monitoring, Compliance and Intervention Framework |
Phase one commenced in July 2021
Phase two commenced in September 2022 |
Phase one of this reform included new mandatory reporting and increased information collection in the 2020-21 Aged Care Financial Report (ACFR) and future ACFRs. Phase two included enabling earlier identification of at-risk providers through new quarterly financial reporting and legislative changes to strengthen provider accountability and transparency.Phase three will include legislative arrangements around minimum liquidity and capital adequacy requirements for aged care providers and will introduce stronger regulatory powers for the Commonwealth, and will commence with the new Aged Care Act. |
Providers should monitor this space for further consultation and preliminary guidance. |
| Consultation on a new model for regulating Aged Care | Consultation paper 1 published September 2022
Consultation paper 2 to be published in early 2023
|
In September 2022, the Department of Health and Aged Care published 'Consultation Paper No.1: A new model for regulating Aged Care outlining a high-level overview of the new model'. In early 2023, the Department will publish a second consultation paper to seek more specific stakeholder feedback on the proposed approach. | Providers should monitor this space for further consultation and preliminary guidance. |
