Delivering Reform, Protecting Dignity: Catholic Providers and the New Aged Care Act

As we approach 1 November and the commencement of the new Aged Care Act, it is worth reflecting on how far we have come and the role Catholic providers have played, directly and working with Catholic Health Australia (CHA), in shaping and readying for reforms that will touch the lives of hundreds of thousands of older Australians.

From the outset, CHA and our members have engaged constructively with Government, the Opposition, crossbenchers and regulators to ensure reforms strengthen care while sustaining the services older Australians rely on. This has included meetings with Ministers and Shadow Ministers, dialogue with the Department and Commission. Most recently, it included an appearance before the Senate Inquiry into Aged Care Services to share the real-world experiences of providers and care recipients.

This engagement has secured important improvements. The removal of price caps in the first year of the new Support at Home program will allow providers to adapt safely to the new model, avoiding the risks of poorly calibrated pricing and unintended service withdrawal. Indeed, this change to the reforms was designed and advocated for by Catholic providers and will allow the Independent Health and Aged Care Pricing Authority time to monitor real-world pricing and adapt its model to ensure it is suitable.

The final Financial and Prudential Standards, which have improved following Catholic sector input, will now help ensure providers can plan with confidence and invest responsibly. This addressed concerns over earlier consultations drafts that risked constraining future investment. that risked constraining future investment.

Sector-wide push

The acceleration of Home Care Package releases will also help reduce waiting times for older Australians in need of support at home. And critically, stronger hardship and safety-net provisions will ensure older Australians are not excluded from care on financial grounds. This change to the rollout of home care packages reflects a strong, sector-wide push, with providers and consumers speaking as one to bring the supply of packages closer to demand and reduce waiting times.

These changes matter. They mean families can be assured that care won’t suddenly become unavailable because of rigid price caps. They mean providers can responsibly maintain staff and facilities, confident in the financial settings. And they mean older Australians with limited means will be supported to continue receiving the care they need and deserve.

But the work is not finished. Our immediate focus is on ensuring a smooth transition through and beyond 1 November. That means helping members navigate compliance obligations, continuing to design and press for sensible policy adjustments, and maintaining the confidence of older Australians and their families in the system.

Several policy issues remain unresolved. We continue to advocate for:

• Greater clarity around the transition to 1 November, particularly technical compliance with the new Aged Care Act: This includes things like timelines for completion of service agreements and ICT systems. Providers risk being caught in costly workarounds that divert resources away from care if issues arise with ICT systems or if they lack clarity about technical compliance as November arrives

• Clearer long-term pricing arrangements, including for care management: Care management is the backbone of effective home care. Halving the cap, as currently proposed, risks undermining the coordination that allows older Australians to remain safely at home. Transparent and sustainable pricing is essential to ensure providers can offer the right level of oversight and planning, particularly for those with complex needs.

• Strengthened workforce solutions: A coordinated national approach is needed to ensure providers can recruit and retain the staff required to deliver safe, high-quality care across the country.

These issues matter because they will determine whether reforms truly deliver on their promise. Without clarity on pricing – including care management – older Australians risk confusion, and providers may struggle to sustain essential supports. Without clarity around timeframes and priorities, even well-designed reforms may falter in practice.

A Catholic calling

Catholic providers approach aged care as a calling, not just a service. Our mission is to uphold the dignity of older Australians, particularly the vulnerable and disadvantaged. That mission has guided our engagement throughout the reform process, and it will continue to guide us as the Act takes effect.

The coming months will be challenging. But they are also an opportunity: an opportunity to demonstrate that reform, when shaped through genuine collaboration between Government, Opposition, providers, and community voices, can deliver a stronger and fairer system.

CHA will continue to advocate firmly but constructively, to keep Australia’s most vulnerable at the heart of aged care reforms, and to ensure this moment is not wasted. With clarity and commitment, we can shape a system worthy of the people it serves.