Release of the Final Report of the Aged Care Taskforce

5 minute read  15.03.2024 Penelope Eden, Sacha Shannon, Benjamin Roe

The Aged Care Taskforce has released its Final Report, delivering 23 recommendations to support an equitable, financially sound and sustainable sector. We provide a high level overview of the report and its impact on the reform journey ahead.


Key takeouts


  • Support at Home Program

    The aged care system should support Individuals to live at home for as long as they wish and can safely do so.
  • Equitable and sustainable funding

    There is an 'urgent need to enable providers to obtain additional revenue' in the shorter-term.
  • Quality, innovation and transparency

    It is important that the aged care sector adapts to the 'evolving needs and expectations of Australia's ageing population'.

On 12 March 2024, the Commonwealth Government released the much anticipated Final Report (Report) of the Aged Care Taskforce (Taskforce).

Background to the Aged Care Taskforce Report

The Taskforce was introduced in response to the Royal Commission into Aged Care Quality and Safety (Royal Commission), which found that the aged care sector is currently not in a financial position to meet expected demand, nor capable of delivering the quality of aged care services expected by consumers of aged care (Individuals), their families and the broader Australian community.

The Taskforce was established to advise on new funding arrangements within the aged care sector to promote sustainability, equality and innovation. The Taskforce delivered 23 recommendations (Recommendations) based on seven core principles (Principles). The Recommendations span a broad range of topics and include supporting Individuals to receive support at home, creating an equitable and sustainable funding model for aged care and improving quality, innovation and transparency across the aged care sector.

Importantly, the Taskforce identified that further reform was still required, particularly in relation to workforce attraction and retention and in improving the interface between aged care and the wider health system. In this sense, the Recommendations of the Taskforce represent one step in the ongoing journey of aged care reform.

Support at Home Program

Given the increasing preference of ageing Australians to receive services in their own home, it unsurprising that the first recommendation made by the Taskforce is that the aged care system should support Individuals to live at home for as long as they wish and can safely do so.

The Taskforce recognised that the Support at Home Program (SHP) (which will be introduced in stages commencing July 2025) is an opportunity to change how home care is delivered to ensure that it meets the expectations of Individuals. Specifically, the Taskforce recommended that the SHP have clearly defined inclusions and exclusions which will ensure that home care funds are used appropriately and are targeted to certain needs.

The Taskforce also made specific Recommendations to establish appropriate arrangements and transition periods for newly reformed models of care, including the implementation of the SHP (Recommendation 6).

Equitable and sustainable funding

The Report aims to establish a more sustainable and equitable ecosystem of funding by steering Government funding towards thin markets and assessed care needs costs, and balancing costs of the residential sector through equitable personal contribution to support greater development and upgrade of accommodation by:

  • enhancing means-tested co-contribution by Individuals to meet increased costs of daily living needs and residential care, with the approach including introduction of a variable, fee-for-service model of Support at Home (Recommendations 3 and 7 to 10);
  • preserving low-means safety net requirements and establishing safeguards to ensure co-contributions do not limit access to residential care (Recommendations 4 and 16); and
  • assessing the classification of remoteness and the appropriateness of expanding block funding to accurately target subsidisation efforts (Recommendations 17 and 18).

Notably, the Taskforce did not adopt the Royal Commission's recommendation to create a Medicare-style levy, noting the strain and 'intergenerational equity issues' that may be contrary to building a sustainable framework (Recommendation 2).

The Taskforce considered longer term reforms for the sector, including the phasing out Refundable Accommodation Deposits (RAD) by 2035 and shifting to a rental only model (Recommendation 12). However, the Taskforce acknowledged that there is an 'urgent need to enable providers to obtain additional revenue' in the shorter-term. The Taskforce made several Recommendations to foster greater capital return, including:

  • requiring portioned retention of RADs to increase provider revenue without additional resident contribution (Recommendation 13);
  • increasing provider incentives to use contemporary design principles by updating Accommodation Supplement policy settings (Recommendation 14);
  • development of a broad 'package of measures' to take steps to provide adequate pricing signals and improve investor confidence (Recommendation 15).

The Taskforce also considered there to be strong need to help Individuals navigate and engage with the complexities of funding arrangements within the aged care sector. The Report promoted transparency protections, such as the publication of prices and offerings, and the need to enable Individuals to negotiate with providers. The Taskforce recommended that these protections be monitored to ensure ongoing compliance (Recommendation 11).

Quality, innovation and transparency

The Report highlighted the importance of the aged care sector to adapt to the 'evolving needs and expectations of Australia's ageing population' and supported an approach of 'good innovative practice' which encourages the Department, providers and Individuals to engage with the aged care system in a way that is more proactive, innovative and technologically advanced. To foster a collaborative approach, improve quality of care and promote financial viability, the Taskforce made several specific Recommendations, including:

  • proposing providers develop care models rooted in innovation, technology and best practice research (Recommendation 19);
  • engaging with Individuals prior to system entry to increase awareness of financial products and consider their use of wealth in retirement (Recommendations 20 and 21);
  • enhancing transparency while limiting provider reporting burden by streamlining financial reporting where possible (Recommendation 22); and
  • improving the Independent Health and Aged Care Sector Pricing Authority by considering the expansion of its responsibilities and communication with the sector on the National Price for the AN-ACC (Recommendation 23).

Looking ahead

The Commonwealth Government is yet to provide a response to the Report, so it is unclear what Recommendations it will accept. We expect that those Recommendations which are accepted will be incorporated into the draft new Aged Care Act which currently contains placeholder provisions in relation to fees and funding. Further information may also be gleaned from the upcoming Federal Budget, which is will be delivered on 14 May 2024.


We will continue providing updates as the roadmap to the new aged care sector progresses. If you would like to discuss this update, or we are able to assist in any way, please do not hesitate to get in touch.

Contact

Tags

eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuYW1laWQiOiI4NzM2MThiOC00MTRiLTRmNTItYWY5Yi0zNDI3YTA2YjhiNjQiLCJyb2xlIjoiQXBpVXNlciIsIm5iZiI6MTczMTQ2ODM2MywiZXhwIjoxNzMxNDY5NTYzLCJpYXQiOjE3MzE0NjgzNjMsImlzcyI6Imh0dHBzOi8vd3d3Lm1pbnRlcmVsbGlzb24uY29tL2FydGljbGVzL3JlbGVhc2Utb2YtdGhlLWZpbmFsLXJlcG9ydC1vZi10aGUtYWdlZC1jYXJlLXRhc2tmb3JjZSIsImF1ZCI6Imh0dHBzOi8vd3d3Lm1pbnRlcmVsbGlzb24uY29tL2FydGljbGVzL3JlbGVhc2Utb2YtdGhlLWZpbmFsLXJlcG9ydC1vZi10aGUtYWdlZC1jYXJlLXRhc2tmb3JjZSJ9.aOANxXxlntYm0zJmFh5JyHznGk9XvoPZLiKBYTplBMA
https://www.minterellison.com/articles/release-of-the-final-report-of-the-aged-care-taskforce