Senate debates

Monday, 26 September 2022

Bills

Aged Care Amendment (Implementing Care Reform) Bill 2022, Treasury Laws Amendment (2022 Measures No. 2) Bill 2022; Second Reading

6:14 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

I present a revised explanatory memorandum relating to the Aged Care Amendment (Implementing Care Reform) Bill 2022, and 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 (IMPLEMENTING CARE REFORM) BILL 2022

Today, the Minister for Aged Care introduces the Aged Care Amendment (Implementing Care Reform) Bill 2022. This Bill implements a number of this Government's election commitments that will ensure older Australians receive the aged care they deserve, after a life contributing to their communities and to Australia.

This Bill also responds to recommendations of the Royal Commission into Aged Care Quality and Safety, which found significant shortcomings in the care provided to older Australians.

Schedule 1 to this Bill will introduce a new responsibility for approved providers of residential care and of specified kinds of flexible care. From 1 July 2023, these providers will need to have a registered nurse on site and on duty at each residential facility, 24 hours a day, 7 days a week. The Bill includes a mechanism for exemptions, on conditions to be specified in subordinate legislation and these details will be specified following consultation with experts and the residential aged care sector.

The Secretary of the Department of Health and Aged Care will be the decision-maker in respect to any exemptions. Before granting such an exemption, the Secretary must be satisfied that the provider has taken reasonable steps to ensure that the clinical care needs of the care recipients in the facility will be met during the period for which any exemption is in force.

This will ensure the needs of the care recipients are central to any decision to grant an exemption.

Further, the Bill places a time limit on any exemption to a maximum period of 12-months to ensure that exemptions are regularly reviewed. To increase transparency, the Secretary will also be required to make publicly available information in relation to any exemptions that are granted.

This implements an election commitment of the Government and, aspects of Recommendation 86 of the final report of the Royal Commission into Aged Care Quality and Safety.

This new responsibility will save thousands of unnecessary trips to hospital Emergency Departments and will ensure that older Australians living in residential aged care have access to the nursing care they deserve.

The Government will also ensure there are more carers with more time to care. Relying on existing powers in the Aged Care Act 1997, the Government will progress subordinate legislation in parallel with this Bill to mandate that everyone living in a residential aged care facility receives an average of 200 minutes of care per day by 1 October 2023, and an average of 215 minutes of care per day by 1 October 2024. This will implement the remainder of Recommendation 86 of the final report of the Royal Commission into Aged Care Quality and Safety. It will mean more care for every resident, every day, and not just for essential medical treatment, but also for basic, important things like helping people take a shower, get dressed or eat a meal.

The Government has committed to capping administration and management costs for people receiving home care. This will help maximise the funding available to address care needs. Currently, approaches to charging differ across providers. While providers are required to publish prices for care and package management, there is little transparency about how these prices are set and there is no cap on the amounts that may be charged. The proposed changes in Schedule 2 to the Bill will enable the Government to reduce high levels of administration and management charges, and remove providers' ability to charge care recipients for ceasing care.

The Government is committed to improving transparency, integrity, and accountability in aged care. The amendments in Schedule 3 to the Bill will ensure that older Australians have access to more and better information on aged care services and providers, including how money is spent on residents' care. This will empower older Australians to make more informed decisions about their care and will strengthen integrity and accountability of providers and incentivise good practice.

The Minister for Aged Care would also like to acknowledge and thank the Community Affairs Legislation Committee members for their time and contributions in considering this Bill. Following feedback received during the Inquiry process and subsequent report, Government moved a number of amendments to the Bill which clarify some points that would otherwise be in subordinate legislation.

One thing has been clear throughout this process—we all have a shared goal to see older Australians receive the care they deserve.

In relation to Recommendation 1 made by the Australian Greens, the Government consulted broadly during the drafting of both the Aged Care and Other Legislation Amendment (Royal Commission Response Act) 2022, as well as this Bill, including with aged care providers and allied health specialists. The Government will continue to consult closely with the sector and invite commentary on subordinate legislation moving forward.

Residential aged care providers are required to deliver and are funded for the provision of allied health services to residents under existing aged care legislation. The new Australian National Aged Care Classification (AN-ACC) funding model, implemented through the Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022 does not alter these requirements. The Government continues to collect information from aged care providers in relation to staffing costs and direct-care hours. This will give Government visibility of the provision of allied health services during and following the transition to AN-ACC and enable Government to respond as necessary.

In relation to Recommendation 4 made by Senator David Pocock, the Government has considered a mechanism for review in relation to an exemption decision. The Quality of Care Principles 2014 will be amended to provide for a decision of the Secretary to grant or not grant an exemption under the those Principles. That decision will be a reviewable decision for the purposes of the Aged Care Act 1997, in accordance with existing provisions around reviewable decisions.

This Bill takes several important steps towards delivering improved nursing care, pricing and transparency and demonstrates this Government's commitment to putting security, dignity, quality, and humanity back into aged care.

I commend this Bill.

TREASURY LAWS AMENDMENT (2022 MEASURES NO. 2) BILL 2022

This Bill will make amendments to reduce the regulatory burden and costs for tax payers and improve compliance with tax laws. The Bill also delivers on the Government's election commitment to provide greater flexibility for downsizers aged 55 years and over to make contributions into their superannuation.

Schedule 1 to the Bill makes it easier for small businesses to comply with their record-keeping obligations. If a business is genuinely struggling to keep appropriate tax records, the Commissioner of Taxation will be allowed to offer the business a choice to undertake a record-keeping course rather than paying financial penalties.

The education course will be free, take approximately two hours to complete, and is expected to be delivered online.

Schedule 2 to the Bill extends existing third-party reporting requirements to operators of electronic platforms in the sharing economy. Platform operators will be required to report to the Australian Taxation Office (ATO) information regarding certain transactions that occur on their platforms, such as seller identification and payment details. This information will assist the ATO in its administration of the tax system and ensure sellers on these platforms are meeting their tax obligations.

As Australia's sharing economy continues to grow, a transparency gap has emerged as existing tax reporting requirements do not adequately capture information about transactions in this part of the economy.

Extending existing third-party reporting requirements to operators of electronic platforms will address this transparency gap, helping to level the tax compliance playing field with other business operators in the economy.

Schedule 3 to the Bill amends the Income Tax Assessment Act 1936 and makes consequential amendments to the Fringe Benefits Tax Act 1986 to remove the exclusion as deductible expenses of the first $250 of expenses for prescribed courses of education.

These amendments will reduce compliance costs for individuals claiming self-education expense deductions.

The changes will apply to assessments for the 2022-23 income year and later income years, following Royal Assent.

Schedule 4 to the Bill allows small businesses to seek orders from the Administrative Appeals Tribunal (AAT) that stay, or otherwise affect, ATO debt recovery actions while the small business is disputing the underlying tax assessment in the Small Business Taxation Division of the AAT.

These amendments implement the 2021-22 Budget measure 'Increased powers for the Administrative Appeals Tribunal in relation to small business taxation decisions'.

Small businesses will save in court and legal fees and as much as 60 days waiting for a decision, compared with the current process of applying to a State or Federal Court for a stay on debt recovery.

These orders will be subject to integrity checks intended to prevent aggressive taxpayers, without genuine disputes, from receiving stay orders sought with the intention of frustrating the recovery of genuine tax debts.

Schedule 5 to the Bill expands eligibility for those aged 55 years and over to make downsizer contributions into superannuation.

This will allow more Australians to make a one-off post-tax contribution of up to $300,000 per person when they sell their family home.

This modest change in the eligibility age for the downsizer program complements the Government's comprehensive plan on housing to improve access and affordability. This measure will increase the availability of suitable housing for growing Australian families by encouraging more older Australians to downsize to homes that better meet their needs.

Full details of the measures are contained in the Explanatory Memorandum.

I commend this Bill.

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

Debate adjourned.