Dennis Jensen (Tangney, Liberal Party) Share this | Hansard source

Growing older is a certainty. It is a part of the natural course of life. However, it does not mean that we have to lose sight of who we are. Rather, as we mature, we truly begin to understand and recognise who we are. The definition of wisdom is the quality of having experience, knowledge, and good judgement; the quality of being wise. Wisdom comes from experience, and experience comes with age. Older Australians have a wealth of experiences and skills. They have lived through experiences and situations that many of us cannot even imagine. This wisdom, this knowledge and this life experience should be both acknowledged and respected.

Over one million older Australians receive aged care services every year. By 2050, over 3.5 million Australians are expected to use aged-care services.

The 2015 Intergenerational report shows that the number of people aged 65 and over is projected to more than double from 3.6 million people in 2014-15 to 8.9 million people by 2055. Furthermore, in my own electorate of Tangney more than nine per cent of the population is over 65 years old. This is a significant number of people within my electorate who would benefit from changes to the current aged-care health system.

It is obvious to see that there will be a huge increase in the number of older Australians in the coming years, with the passage of the baby boomers into the older ages. And thanks to better health and better health care they are keeping active, staying at home and living longer lives. They also differ significantly economically, socially and culturally from the previous generation. Expectations will increase, as older Australians want more choice and more flexibility in what services are available to them and also how they are delivered. They have a strong preference for continuing to live in their homes and communities for as long as possible. Older Australians also want to have a much greater role in decisions about their care, including what services are provided and by whom and when.

It also means that the demands on Australia's aged-care system are changing. As such it is important that the government recognises these changes, and shifts and does something about them. This bill actively allows us to do just that. We talk a lot about being innovative, agile and flexible. We talk a lot about giving Australians a fair go. Older Australians should and must be treated no differently. These are our true Aussie battlers. They have battled; they are the ones we look up to. They have been through the highs and the lows of life and come out the other side.

We recognise that older Australians are important, and now the coalition government recognises that we need an aged-care system that reflects this sentiment. Presently, most older Australians are limited for choice and flexibility when it comes to who delivers their care and services. The 2011 Productivity Commission Caring for older Australians report identified a number of key weaknesses of the system, including that it is difficult to navigate, services and consumer choice are limited and coverage of needs, pricing, subsidies and user co-contributions are inconsistent or inequitable.

We have already implemented a range of measures to address these weaknesses. Some were started by the previous government, but this government is going further. We always go further, moving the aged-care system more in line with the Productivity Commission's recommendation. In January we transferred responsibility for the Aged Care Complaints scheme from the Department of Health to the Aged Care Complaints Commissioner, creating a more independent and robust approach to complaints.

The My Aged Care gateway is now supporting people to find their way through the aged-care system, and increasing its role as the one identifiable place to go for information and support to access aged care. This user-friendly site is giving older Australians all the information they require in one easy-to-navigate place, along with access and support to aged-care programs and services.

The Productivity Commission's report also stated that competition rather than extensive regulation is the key to delivering innovative, quality services and an efficient and sustainable system. Creating a competitive home care market will ensure that consumers have the ability to pick and choose their providers. It also means that older Australians will be able to choose providers based on their own specific and unique health requirements, as well as cultural or other personal factors.

The government already plays a crucial role in setting policy and ensuring safety and compliance in aged-care services. It will continue to be there to promote equity of access, support vulnerable consumers and a sustainable system. However, it must be acknowledged that market based solutions and consumer choice will increasingly be the driving force for quality, value and performance of services. As such, moving to a market based system, giving consumers choice and allowing providers to run their own services, is central to the government's plan for at home aged care now and in the future.

We live in a world where everything is at our fingertips. We are constantly bombarded with a plethora of options and choices for everything and anything. Everybody should be able to make choices. Everybody should be given the opportunity and have the ability to compare options and make informed decisions based on needs and requirements. We have all grown accustomed to this luxury and expect to have this ability wherever we go. Why should older Australians be treated any different?

In 2011 the Productivity Commission noted that:

Older Australians did not want to be passive recipients of services, dependent on funded providers.

Rather, they wanted to be independent and able to choose where they live, which provider they would use, the way in which services are delivered, and whether to purchase additional services and/or a higher standard of accommodation. There is strong empirical evidence that consumer choice improves wellbeing, including higher life satisfaction, greater life expectancy, independence and better continuity of care. Additionally, competition amongst providers in a system where consumers can exercise choice leads to a more dynamic system with enhanced incentives for greater efficiency, innovation and quality. A more flexible system would also enable providers to increase the range and scope of their services, freeing them from the current highly regulated, risk-averse regime.

In order to support and deliver more choice to older Australians, the government announced significant reforms to home care in the 2015-16 budget. The reforms support consumers to ensure they receive the services and support they need, while at the same time strengthening the aged care system, providing higher quality and more innovative services through increased competition. Changes build on the current consumer directed care approach in home care and will be introduced in two stages.

From February 2017 home care packages will follow the consumer, making it easier for consumers choose a home care provider, change providers, and also remove red tape for home care providers. This will give older Australians greater choice in deciding who provides their home care, all the while establishing a consistent national approach to prioritising access to care. The second stage will integrate the Home Care Packages Program and the Commonwealth Home Support Program into a single care at home program to further simplify the way that services are delivered and funded. This bill allows us to implement stage 1 of these reforms as well as amend the Aged Care Act 1997 and the Aged Care (Transitional Provisions) Act 1997 in three main areas.

Firstly, funding for a home care package will now follow the consumer. This replaces the current system where home care packages are allocated to individual approved providers in respect of a particular location or region. It offers far more choice for the consumer in selecting their provider, as well as more flexibility to change their provider if they wish to do so. A consumer will be able to choose a provider that is suited to them. They will be able to find providers that tailor to their specific health needs, as well as other cultural or personal factors.

Home care packages will also be portable for older Australians. If they wish to move to a new location or change to another provider, the package as well as any unspent funds will move with the consumer to their new provider. This will give older Australians a new-found freedom. It will give them the ability to change providers as their health needs change and as their living arrangements change. Providers will also no longer have to apply for new home care places through the Aged Care Approvals Round, significantly reducing red tape for businesses. This will increase competition in the sector by allowing more consumer focused and innovative providers to expand their businesses to meet local demand and consumer expectations. This will include the needs of consumers with dementia and other special needs, making finding a home care provider for unique and special needs easier and simpler.

Secondly, there will be a consistent national approach to prioritising access to home care packages through My Aged Care—the government entry point/gateway to the aged care system. Currently waiting lists for packages are managed by the individual providers. This means that there can be significant variations in the waiting lists for packages across Australia. We want to create an aged care system which prioritises the needs and circumstances of consumers based on the importance and nature of their situation. Once this legislation goes through, the prioritisation process will take into account the relative needs and circumstances of consumers. It will be determined through their comprehensive assessment undertaken by an aged care assessment team, and the time that a person has been waiting for care.

And thirdly, there will be reduced red tape associated with providers who become approved under the Aged Care Act 1997. This will help encourage new providers to enter the home care market, supporting greater choice for consumers. All providers will still need to demonstrate their satiability to become an approved provider and meet quality standards but this process will become much more streamlined.

The coalition's plan to implement these measures clearly shows that the government understands and recognises the importance of older Australians. Considering the integral role that is played by older Australians in our society, I am reminded of the painter Rembrandt. Unlike other artists who treated and painted old age with curiosity or cruelty, Rembrandt always celebrated the effects of time. He painted old age with a certain dignity and nobility, approaching his subjects with kindness and compassion. Instead of making a mockery of age, Rembrandt recognised the character of elderly faces, embracing the marks of time as beautiful. What Rembrandt did with paint, so we are doing with this legislation. We are celebrating the achievements that come with age. We are honouring the years of work and dedication to this nation. We are approaching changes to aged care with kindness and compassion. Ronald Reagan once said:

Our country is great because it is built on principles of self-reliance … innovation and compassion for others.

This is the country that we, the coalition government, continue to build. Legislation such as this allows us to extend compassion where compassion is due, to bring innovation into areas where innovation is required, and to give choices and options to those who—well and truly—have earned it. We aim to create an aged-care system which respects older Australians, a system which gives them exactly what they want—self-reliance, independence and the ability to choose how they want their healthcare delivered, by whom and when. This bill ensures that the aged-care system improves the wellbeing of older Australians through targeted support, access to quality and information services.

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