Senate debates
Thursday, 31 July 2025
Bills
Aged Care and Other Legislation Amendment Bill 2025, Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025; Second Reading
4:03 pm
Jenny McAllister (NSW, Australian Labor Party, Minister for the National Disability Insurance Scheme) 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.
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2025
I move that this Bill be 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 centre.
The Aged Care Act 2024 passed the Parliament in the last term.
I recognise the immense contribution of my ministerial colleague, Anika Wells, 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 role 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 important 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. 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 changes.
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 Chapter 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 older people in aged care homes receive the dedicated care time they need. 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 framework, 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 we 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 years to come.
I would like to thank the many people who have contributed to this ambitious reform to date.
In particular, I would like to thank:
Last but not least thank you to the older Australians, carers, workers, unions, providers, advocates and 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.
AGED CARE (ACCOMMODATION PAYMENT SECURITY) LEVY AMENDMENT BILL 2025
I move that this Bill be read a second time.
I introduce the Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025.
This Bill is a counterpart to the Bill I introduced before this, and complements the provisions it contains.
This Bill makes additional technical, transitional, and consequential changes to support the commencement of the new Aged Care Act 2024.
This Bill makes consequential amendments to Aged Care (Accommodation Payment Security) Levy Act 2006 which guarantees certain payments made by older Australians who seek to access funded aged care.
It does so in two main ways. First, it ensures that registered providers under the new Act framework continue to be subject to the Government's guarantee scheme.
Secondly, it provides that the Government may levy the costs of this guarantee from certain classes of registered providers in certain circumstances, such as when there is a default event.
This Bill is an important measure to ensure that funded aged care services remain sustainable, and payments made by older Australians remain protected into the future.
I commend the Bill to the House.
Ordered that further consideration of the second reading of these bills be adjourned to the first sitting day of the next period of sittings, in accordance with standing order 111.