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Aged Care Reforms Now in Effect: Industry Leaders Raise Alarms

UPDATE: Major reforms to Australia’s aged care system are now in effect, aimed at drastically improving care for older Australians. However, industry leaders are raising urgent concerns regarding the sustainability and readiness of the sector to implement these sweeping changes.

The Aged Care Act reforms, which are a response to findings from the Royal Commission into Aged Care Quality and Safety, will introduce new fees for certain support services, including showering, while clinical services like nursing will remain fully subsidized. These changes are designed to stabilize the industry but come with significant implications for many care recipients.

Under the new rules, some older Australians may now face increased costs for essential services. Although those already receiving care will not be worse off due to grandfathering provisions, the updates raise questions about affordability and access for new entrants. Craig Gear, CEO of the Older Persons Advocacy Network, warns that individuals entering care may experience diminished purchasing power, complicating their access to necessary support.

Greg Bartley, Chief Operating Officer of home care provider Dovida, which supports over 14,000 seniors, expressed serious concerns about the federal government’s ambitious goal to reduce wait times for aged care services to just three months by July 2027. “The system is already stretched thin,” Bartley stated. “Without urgent focus on infrastructure and workforce, this target could quickly become another missed milestone for older Australians waiting for care.”

The reforms also enhance rights for older Australians regarding independence, privacy, and safety. Aged Care Minister Sam Rae emphasized that these changes are not merely about patching a broken system but fulfilling a promise to ensure dignity and respect for all individuals who have contributed to society.

Despite the positive intentions behind these reforms, uncertainty looms. Patricia Sparrow, CEO of the Council on the Ageing, noted that as the changes roll out, more details will become clearer, but many people are still grappling with the implications. “The changes are large, and people are trying to take them in,” she commented.

The reforms have sparked a political debate, with the Greens voting against the legislation in 2024, citing concerns over the financialization of care. Senator Penny Allman-Payne stated, “Our parents and grandparents deserve to be looked after in their old age, not forced to choose between a shower each day and a meal. Aged care should not be for profit.”

As the aged care sector braces for the impact of these historic reforms, the pressing question remains: Can the industry adapt quickly enough to meet the increasing demand as baby boomers age? The clock is ticking, and the well-being of older Australians depends on swift and effective implementation of these changes.

This is an urgent moment for the aged care sector, and all eyes are on the government and service providers as they navigate these significant shifts. The unfolding situation will be closely monitored by advocates and families alike, hoping for a system that truly prioritizes the needs of its most vulnerable citizens.

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