Aged Care Sector Reforms – A snapshot of the current and emerging regulatory landscape.

3 minute read  01.05.2023 Penelope Eden, Michael Thomas, Benjamin Roe

It has been just over six months since the Government introduced two key pieces of aged care legislation to Parliament: the Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022 and the Aged Care Amendment Implementing Care Reform) Bill 2022. These two bills, addressed 19 recommendations from the Final Report of the Royal Commission and set in motion a period of intense regulatory and legislative change for the sector.

In this update, we recap the major recent reform initiatives.

Key reform items since July 2022

  • Commencement of Australian National Aged Care Classification (AN-ACC): AN-ACC replaced ACFI as the residential aged care subsidy calculation mode from 1 October 2022. AN-ACC links calculation of a variable amount of residential aged care subsidy to each care recipient’s AN-ACC classification level.
  • Information-sharing: As of 6 August 2022, the Department and ACQSC may share protected information with specified Commonwealth bodies. The Department may also disclose protected information to a body responsible for professional conduct standards.
  • Use of Refundable Deposits and Accommodation Bonds: As of 6 August 2022, the Secretary or Commissioner may request information or documents from a provider or borrower regarding loans made using a RAD or accommodation bond, and created an offence of strict liability for a borrower who does not comply with such request.
  • Independent review of the ACQSC: An independent review of the functions and operation of the ACQSC commenced 1 October 2022, with a report due in April 2023.
  • Commencement of the Code of Conduct for Aged Care: On 1 December 2022, the Code of Conduct for Aged Care commenced, which imposes obligations on aged care providers, their governing persons and aged care workers. Failure to comply with the Code may result in civil penalties, or the issue of a banning order restricting an individual from involvement in the sector.
  • Expansion of SIRS to home care and flexible care provided in a home or community setting: From 1 December 2022, the definition of a reportable incident was extended to include home and community care settings, requiring home care and flexible care providers operating in these settings to notify serious incidents to the ACQSC.
  • Commencement of Star Ratings: Star ratings in the categories of compliance, quality measures, resident experience, and staff, were published for all residential aged care services on My Aged Care in December 2022.
  • Approved Provider Governance Responsibilities: From 1 December 2022, approved providers are now required to assess the suitability of key personnel at least once every 12 months, and notify the ACQSC of changes relating to key personnel, or their suitability as an approved provider. Additional governance responsibilities will commence on 1 December 2023 for existing providers.
  • Substitute decision-making in relation to restrictive practices: The Quality of Care Amendment (Restrictive Practices) Principles 2022 establishes a hierarchy of substitute decision-makers in relation to the use of a restrictive practice, in limited circumstances.
  • Material change notifications: From 1 December 2022, approved providers are required to report changes which affect its suitability within 14 days.
  • Changes to Home Care fees and pricing: From 1 January 2023, home care providers are no longer permitted to charge separately for third party services, exit amounts, or package management fees. Home care providers are also required to cap care management at 20% and package management prices at 15% of the package level.
  • Establishment of Inspector-General of Aged Care: the new role of the Inspector-General was established, with Mr Ian Yates AM appointed to the role, who will investigate and report on systemic issues which affect the Australian Government’s funding, regulation, administration, or delivery of aged care.

This article is designed to give you a snapshot of the reforms which were introduced or commenced in the six months between 1 July 2022 and the end of 2022.

We expect reform in the aged care sector will continue throughout 2023 and we will keep you updated as these reforms progress.

Please let us know if you would like to discuss, or we are able to assist in any way.

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