Sam Rae (Hawke, Australian Labor Party, Minister for Aged Care and Seniors) Share this | Hansard source

I move:

That this bill be now read a second time.

I introduce the Aged Care and Other Legislation Amendment Bill 2025.

This bill makes technical, transitional, and consequential changes to support the commencement of the Aged Care Act 2024.

The Royal Commission into Aged Care Quality and Safety, which released its expansive final report in March 2021, shocked Australians with its damning assessment of a failing aged-care system.

The first recommendation of the royal commission was the development of a new aged-care act to put rights of older people at the very centre of their care.

The Aged Care Act 2024 passed the parliament in the last term.

I recognise the immense contribution of my ministerial colleague, now minister for communications, in steering these landmark reforms through the parliament last term.

I also want to acknowledge that the reforms passed through the parliament with bipartisan support, and I recognise the constructive roles that the opposition and members of the crossbench played as these reforms were considered.

It's a timely reminder that the wellbeing and dignity of older people, and the importance of delivering respectful and person centred care, should be above politics.

The Aged Care Act 2024, which commences on 1 November 2025, which replaces the Aged Care Act 1997, will deliver on this recommendation and establish a new rights based framework for the delivery of aged care in Australia.

The new legislative framework follows so many other improvements, including:

The new act puts the dignity of older Australians first and foremost with the statement of rights, underpinned by Australia's obligations under the International Covenant on Economic, Social and Cultural Rights and the Convention on the Rights of Persons with Disabilities.

It is very important that we get this once-in-a-generation reform right.

That's why the government chose to defer the start of the Aged Care Act 2024 and the new Support at Home program that comes along with it. As we said when the deferral was announced, the government decided it was appropriate to give more time for aged-care providers to prepare their clients, support their workforce and get their systems ready for change.

This bill provides further support for our ambition to transform the experience of older Australians receiving care.

The bill also includes amendments to the Aged Care (Consequential and Transitional Provisions) Act 2024 and other legislation that supports the aged-care system.

Aged Care Act 2024 c hapter 4 amendments

The Aged Care and Other Legislation Amendment Bill 2025 makes a number of transitional changes to ensure that subsidies are paid correctly to support the provision of funded aged care to older Australians.

Older Australians are now receiving an additional 6.8 million minutes of care every single day—2.5 million of which are delivered by qualified registered nurses. Care minutes and related measures were introduced in response to a recommendation of the royal commission to ensure that older people in aged-care homes receive the dedicated care time that we all know they need and deserve. Amendments to provider based subsidy provisions ensure that registered providers are supported to deliver this high-quality care while maintaining a sustainable aged-care system.

The bill also contains amendments to support the continuation of 'accommodation bond' arrangements, which are amounts paid to enter and receive care in a residential setting made under the 1997 act, for people who entered care before 2008.

The amendments also include a new civil penalty provision comparable to the existing accommodation payments framework under the new act.

Miscellaneous changes

The new act provided for automated processes to support decisions about classification levels, prioritisation and allocation of places to individuals.

Updated automation provisions are included in this bill which reflect best practice for transparency and clarity. The updated provisions will support means-testing arrangements under the new framework for financial contributions. This will allow the system to remain efficient and keep pace with technological advances and ensure that older Australians get quicker and more robust decisions.

The protection of personal information and the regulation of its use and disclosure, consistent with both Australian law and international standards, remains a key priority. Under the new act, this information is protected information, and the act provides substantial penalties for misuse.

Amendments in this bill ensure this information is clearly transitioned from the old framework to the new framework with no confusion as to when and how authorisations to use or disclose this information for a proper purpose apply.

Amendments are also being made to the Star Ratings program. The introduction of this program has given older Australians and their loved ones more information about residential aged-care homes. But, based on public consultation and feedback, amendments will be made to better utilise compliance information in determining and publishing a registered provider's compliance with their obligations under the law.

This new bill also introduces a requirement that the aged-care quality standards are reviewed every five years, to ensure that the standards of care that we all expect for older Australians are regularly considered against and aligned with best practice.

Consequential amendments

The Aged Care and Other Legislation Amendment Bill 2025 will make consequential changes to legislation that reference the Commonwealth aged-care system. These amendments will ensure that funded aged-care services are provided in a manner consistent with other Commonwealth legislation. Amendments will ensure that existing exemptions to the application of the GST remain in place for aged-care services. Amendments to the treatment of means testing and income support payments will ensure they continue to operate as intended—specifically, that aged-care accommodation payments and certain compensation payments are not considered income, and that certain exemptions continue to apply to payments made to injured veterans.

Concluding remarks

To conclude, this bill builds on the new and enduring foundation for the Australian aged-care system from 1 November 2025, and for many years to come.

I would like to thank the many people who have contributed to this ambitious reform to date.

In particular, I thank:

Last, but certainly not least, thank you to the older Australians, the carers, the workers, the unions, the providers, the advocates and the other experts who continue to contribute to an aged-care system that puts people first.

I hope the parliament will come together to support this bill, to help realise the full potential of these critical aged-care reforms.

I commend the bill to the House.

Debate adjourned.

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