Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

AGED CARE AMENDMENT (2008 MEASURES No. 2) BILL 2008

Caring for our ageing population is one of the major challenges facing our nation this century – it requires careful planning, adequate funding and comprehensive safeguards to ensure the protection of our frail, older Australians.

The Government takes this responsibility very seriously and is committed to the highest quality of care for older Australians.

I am pleased to be able to demonstrate our commitment in a very concrete and real way today, by introducing the Aged Care Amendment Bill 2008.

The Bill is part of a package of reforms designed to ensure that frail, older Australians who enter in residential care receive high quality care, that the significant sums of money paid by care recipients are managed responsibly by the aged care provider, and that the aged care regulatory framework is robust. 

In the decade since the Aged Care Act 1997 (the Act) first came into effect the industry has matured significantly.  The setting in 2008 is significantly different from what existed in 1997.  The sector is evolving from typically a one site, one service “cottage” type to multi-site, multi-State, multi-service operations using complex financial and legal arrangements.

The Act as currently written does not scrutinise these complex corporate structures to the same extent as it does the business model that existed when the Act was first developed.

Another feature of the sector in 2008, not envisaged in the 1997 legislation, relates to the provision of a broad range of aged care services within the one facility.

This Bill addresses each of these major areas of change in a considered way to meet the challenges of the 21st Century.

Addressing changes in business structures

When the aged care legislation was developed ten years ago, the typical business model adopted by aged care providers was one whereby the owner of the facilities also operated the aged care facility.  The regulatory framework reflected the “cottage” nature of the sector as it then was. 

In recent years a different model of aged care has emerged, one in which the owner and operator of a facility have distinct roles and responsibilities and may function quite separately.  The last decade has also seen a significant increase in the level of investment in the sector from large corporate entities.  The regulatory framework has not kept pace with this shift in business practice.

This lack of consistency between the regulatory framework and contemporary business practice means that the regulations have not been able to be applied equally to all approved providers regardless of their corporate structure. 

Under current arrangements, those “pulling the financial strings” may not be currently considered as “key personnel” for the purposes of regulatory scrutiny.   Amendments to the range of people considered to be ‘key personnel’ of an approved provider will ensure an inspection of those pulling the financial strings, and that the relevant provisions apply consistently to approved providers.

Presently, there is limited capacity for the Department of Health and Ageing to consider the record of “related entities” when making decisions about approvals, which unnecessarily and inappropriately limits the ability of the Department to make an informed assessment of a company’s record in service delivery and its suitability to be approved to deliver care in the future.  The Bill addresses this issue, to provide better protection for residents and promote public confidence in the industry.

The changes outlined in the Bill will ensure that the legislation holds large aged care providers as accountable as smaller ones, and that no entity can avoid their accountabilities through sophisticated business structures.  It will enable the Department to consider the record of related entities when making decisions and considering approvals. 

The requirement for more comprehensive assessment of applicants for approvals also provides better protection for residents and promotes public confidence in the system.

Very importantly, the Bill also eliminates ambiguity about which aged care services are regulated by the legislation.   Increasingly developers are putting aged care, retirement villages and sometimes disability or step down care all in the same development, giving rise to uncertainty relating to the regulatory reach of the Aged Care Act.  Changes to the regulatory and administrative framework will clarify that only the aged care services are regulated by the Aged Care Act. 

This provides greater certainty for care recipients and providers about their respective rights, obligations and protections.  These changes are a critical, structural platform for other changes and for ensuring the ongoing protection of aged care recipients.

Increased protection of bonds

Significant sums of money are held on behalf of residents, these accommodation bonds, often represents most of their life-savings.  As at 30 June 2007, around 970 approved providers (75% of all approved providers of residential care) held accommodation bonds, with a total value of $6.3 billion.  Comprehensive consumer safeguards must be in place to protect these funds.

Since the introduction of the Accommodation Bond Guarantee Scheme in 2006, which guarantees the repayment of bonds in the event that a provider becomes insolvent or bankrupt, experience has highlighted some areas where the protections for residents could be strengthened.  This Bill addresses these issues and ensures that accommodation bonds, and similar payments paid by residents for entry into aged care services, are fully protected under the Guarantee Scheme.

The number of people seeking access to care

Turning now to the way the Bill addresses the increase in the number of people seeking approval for access to care.

In 2006-07, Aged Care Assessment Teams conducted a total of 189,000 assessments of frail older Australians across community, hospital and residential settings. 

This requires significant resources to enable timely assessment of care needs.  The Government is committed to meeting this need.  However, we also recognise that there are ways that we can do business better in order to reduce waiting times for our elderly citizens.  The Bill addresses this issue by streamlining assessments and reducing red tape.

Following these amendments, negotiations will commence with the States and Territories so that the greater efficiencies provided for in this Bill will result in improvements in the timelines of assessments for older people.

Ensuring the health, welfare and other needs of care recipients are met

Finally, and most importantly – the reform package ensures that the protection of residents is of the highest priority.

The reform package includes changes to the Aged Care Principles, which very directly address the safety of residents.

Measures to be included in amended Principles include reducing the risk of potentially unsuitable people working with vulnerable older Australians through strengthened police check requirements.  This ensures that people with convictions for serious offences such as murder, sexual assault and physical assault are not employed to care for older Australians.  This change will be put in place through an amendment to the Accountability Principles.

A new measure requiring providers to raise the alarm with the Department of Health and Ageing is particularly important for protecting residents who are absent without a reason known to the home, and who have been reported to the Police as missing.  This will enable the Department to determine whether appropriate action has been taken and to ensure that the service has systems and processes in place to ensure the safety of all residents.  This change will be established by amendments to both the Act and the Accountability Principles.

Finally, changes to the Act will make certain that when the Department needs to take action against an aged care provider for non-compliance, and is considering both the safety of the residents and the rights of aged care providers, the Department must give the most weight to whether the non-compliance threatens or would threaten the health, welfare or interests of current and future care recipients.  While this has always been the intent of the legislation, this requirement will now be placed front and centre so that there can be no doubt about what is the paramount consideration.

In addition, the amendments will make some minor, operational changes to improve the administration of the legislation so that it operates effectively.

Timing

Subject to the passage of the Bill through Parliament and the development of associated changes to delegated legislation, it is proposed that the package of reforms will take effect from 1 January with a transition period for some of the reforms until the end of June 2009.  This transition period will ensure that aged care providers and residents have an opportunity to prepare for, and become familiar with, these changes.

These changes have been the subject of consultation with the aged care industry and consumer representative groups, which has helped shape this Bill.  To ensure smooth implementation, the Government will continue to work collaboratively with providers, professional bodies, unions, care recipients and their families, and listen closely to their views.

Conclusion

I am very pleased to be able to introduce this Bill and announce the package of reforms of which it is part.

The reforms strike the right balance between maintaining contemporary, effective regulation to protect vulnerable and elderly people and delivering change to reduce the regulatory burden for aged care providers. They also complement the record funding by the Australian Government to support aged and community care.

Over the next four years, the Australian Government will provide more than $40 billion funding to aged and community care including more than $28.6 billion to nursing homes and hostels.

These changes will promote public confidence in the aged care system, ensure the regulatory framework is appropriate in an evolving corporate environment and provide the best possible protections and quality of care for older Australians.

AUSTRALIAN CURRICULUM, ASSESSMENT AND REPORTING AUTHORITY BILL 2008

Introductory remarks

It gives me great pleasure to present the Australian Curriculum, Assessment and Reporting Authority Bill 2008. This bill is yet another illustration of how this Government is getting on with the job of delivering an Education Revolution to Australia.

This Government knows that a world-class education system is the foundation of a competitive economy, that it underpins a dynamic labour market and that it is central to building a stronger and fairer Australia.

Over the last 12 years, under the Howard Government, our education system has been allowed to fall behind. It has suffered more than a decade of neglect.

In the May Budget, this Government committed an unprecedented $19.3 billion to an Education Revolution; we have started rebuilding a modern, high quality education system for all Australians.

We are delivering computers to schools and new Trade Training Centres are also on their way.

Our Education Tax Refund is available to parents for educational expenses incurred since July this year. This bill builds on this Government’s achievements so far.

In less than one year in Government we have begun to transform the Australian education landscape.

This bill, by creating a new national authority responsible for curriculum, assessment and reporting, introduces a new era of transparency and quality in Australian schools.

Australian Curriculum, Assessment and Reporting Authority

During the 2007 election we promised that a Rudd Labor Government would deliver a National Curriculum for Australia. We promised that a Rudd Government would deliver a comprehensive and sophisticated approach to performance reporting for individual schools across Australia.

Now we are delivering on that promise.

In the past, education policy in Australia has been dogged by a lack of transparency. Information about what happens in schools and what difference it is making has been seriously lacking.

In a world where education is central to prosperity and to social inclusion, being limited to such an opaque picture is not acceptable.

We cannot afford for our educational debates to ignore the fundamental issues of quality and outcome that will determine our young people’s future lifechances.

But this was the reality of education policy under the Howard Government. Its funding policies polarised debate and neglected the long term needs of students. Its curriculum posturing generated more heat than light. It was all about publicity for Liberal Ministers rather than what children learn. Its coordinating structures failed to bring either coherence or efficiency to the regulation of schooling or the management of essential business between governments.

In contrast, this Government has built the foundations of a comprehensive, long term school reform strategy.

A National Education Agreement will be concluded through COAG before the end of this year. This agreement will establish for the first time the shared national targets, outcomes and policy directions that we need to achieve a world class school system serving the needs of every Australian student.

The National Education Agreement will provide the framework for ongoing, collaborative reform.

Its priorities include proposals for National Partnerships to lift teacher quality, boost literacy and numeracy and raise achievement in disadvantaged school communities.

Our ambition is to deliver a world class education for every Australian student in every community.

To achieve that goal, we need curriculum, assessment and reporting systems that are up to the task.

A new era of transparency

Earlier this year, the Prime Minister and I called for a new era of transparency in Australian schooling.

We argued that to lift performance and direct new resources to where they will make most difference, we need unprecedented rigour and openness in the collection and publication of schools data

If we are to identify accurately where the greatest educational need across the Australian community is located and encourage excellence in every school, we need a basis for fair, consistent, and accurate analysis of how different schools are doing.

Accurate information on how students and schools are performing tells teachers, principals, parents and governments what needs to be done.

This means publishing the performance of individual schools, along with information that puts that data in its proper context. That context includes information about the range of student backgrounds served by a school and its performance when compared against other ‘like schools’ serving similar student populations.

In a world class school system curriculum, assessment and performance reporting all play a crucial role in ensuring that teaching and learning are of the highest quality. They must be carefully aligned with each other and reflect the best of what happens in Australian schools and around the world.

This bill will establish a single national Authority to perform that role.

This bill marks a defining moment in the future of education in Australia. A defining moment that we could have only achieved by working closely with our colleagues in the States and Territories to end the blame-game in education.

It is with pride that I acknowledge the role of the State and Territory education Ministers who have worked with me through the Ministerial Council on Education, Employment, Training and Youth Affairs to achieve this reform. This is collaborative federalism at its best.

The creation of this new Authority gives effect to the Council of Australian Governments’ historic decision on 2 October 2008 to establish a new national education authority.

The Australian Curriculum, Assessment and Reporting Authority will bring together, for the first time, the functions of curriculum, assessment and reporting at the national level.

It will be a key driver of the Education Revolution.

It demonstrates to parents, students, teachers and the international community how committed we are to ensuring that every young Australian has the best possible start in life.

It places education at the forefront of the national agenda—a place where it has not been for twelve long years.

As part of our commitment, the Australian Government is committing more than $37 million over the next four years to support the work of the new Authority. This commitment will be matched through existing contributions made by the States and Territories.

Detail on provisions of the Bill

This bill establishes the Australian Curriculum, Assessment and Reporting Authority as an independent statutory authority under the Commonwealth Authorities and Companies Act 1997.

The bill includes provisions to ensure that state and territory education ministers’ responsibility for curriculum arrangements in their own jurisdictions is recognised and respected and that non-government school systems are participants in the new national arrangements.

The Authority will be responsible for the management of curriculum, assessment and reporting at the national level and will report to all Australian education ministers through the Ministerial Council.

The Ministerial Council will be responsible for setting the Authority’s work program through a Charter. The Authority must perform its functions and exercise its powers in accordance with the bill and the Charter.

The bill provides for the Authority’s core functions across the areas of curriculum, assessment and reporting as well as the ability to operate commercially with regard to educational services.

The Authority will be led by a 13 member expert Board of Directors, responsible for overseeing the functions of the Authority. Membership will include a Chair, a Deputy Chair, one nominee from the Commonwealth, one nominee each from each State and Territory Education Minister, one nominee from the National Catholic Education Commission and one nominee from the Independent Schools Council of Australia. These appointments will be made by the Ministerial Council.

There will also be a Chief Executive Officer of the Authority, appointed by the Board, responsible for overseeing the day-to-day management of the Authority.

The Authority will be responsible for delivering Australia’s first national curriculum and the new transparency and performance reporting agenda announced by the Prime Minister last month.

National curriculum benefits

In developing a single national curriculum, the Authority will ensure that every young Australian has access to the highest quality education—regardless of where they live or their socio-economic background. The national curriculum will outline the curriculum entitlement for every young Australian. This is something that I believe is 30 years overdue for a modern, talented and resource-rich country, such as Australia.

We must ensure that all Australian children achieve their educational potential, and that more of them complete schooling through to Year 12.

The new national curriculum will be future-oriented and will equip our young people with the essential skills, knowledge and capabilities to compete internationally and thrive in the globalised economies of the future.

It will also facilitate greater student mobility for some 340,000 Australians, including for some 80,000 school-aged students who move interstate each year in pursuit of educational or employment opportunities.

A national curriculum will benefit teachers by giving them a clear understanding of what needs to be covered in each subject and in each year level during each phase of schooling. It will also allow teachers the flexibility to shape their classes around the curriculum in a way that is meaningful and engaging for students.

The national curriculum will also bring benefits to parents. It will give them clear and explicit agreement about what it is that young people should know and be able to do. It will be grounded in the best of the traditional disciplines and will have as its foundation specific standards of literacy and numeracy.

Earlier this year, this Government announced the establishment of an interim National Curriculum Board with responsibility for overseeing the challenging task of developing the national curriculum.

The interim Board, led by Professor Barry McGaw as Chair, and Mr Tony Mackay as Deputy Chair have been working very hard to engage the education community in developing Australia’s first national curriculum in English, mathematics, the sciences and history.

And they have been doing an excellent job. I would like to commend the interim Board members for their efforts and energy in taking the work this far.

The work of the National Curriculum Board will now form part of this new authority and we will work with the Board to ensure that there is a considered transition strategy put in place to effect this transfer of responsibilities.

As part of our election commitment, we committed to establishing the final governance arrangements for the Board by 1 January 2009. Today, we deliver on that commitment.

Concluding remarks

The Australian Curriculum, Assessment and Reporting Authority will be at the forefront of the Australian Government’s commitment to provide all young Australians with better opportunities and the best start in life. It will be the engine room of reform, a key driver of our Education Revolution. It will be responsible for delivering some of the most significant educational reforms in Australia’s history. It heralds a new era in education across Australia. And it places education at the forefront of the national agenda where it rightfully belongs.

Debate (on motion by Senator Sherry) adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.