Catholic Health Australia congratulates Albanese Government and urges health reform
May 5, 2025
Catholic Health Australia –Submission on Stage 2c Release of Rules on funding and regulation
May 6, 2025
Executive summary
Catholic Health Australia (CHA) is Australia’s largest non-government grouping of health, community, and aged care services accounting for approximately 12 per cent of aged care facilities across Australia, in addition to 20 per cent of care provision in the home. Catholic aged care providers have a vital interest in working with the Australian Government to ensure the sustainable provision of aged care and support services for older Australians meet community expectations of safe and quality of care.
CHA appreciates the opportunity to provide input into Stage 2b on the funding arrangements for aged care programs. We look forward to working with the Department during the consultation process to ensure the draft Rules achieve their intended outcomes. Our goal is to ensure they fully support a high-quality and safe aged care system for all Australians irrespective of their wealth or geography, consistent with Catholic Social Justice principles.
CHA appreciates the work undertaken by the Government to design the funding mechanisms required for the successful implementation of aged care programs under the new Act. This submission focuses on the requirement for Government to fund an adequate number of Support at Home (SaH) packages; for detailed considerations of the implications around interim budgets for older people waiting to access a SaH package; for care management to be addressed through adequate funding; for adequate safety nets to be in place for those that need it; for clarity and supporting guidance to providers and older people to enable the Rules to be effectively implemented; and for ongoing monitoring and review, including of any unintended consequences.
Key observations and issues related to the Rules articulated in our submission include:
Rules regarding Support at Home
- Care management: CHA appreciates the mechanism introduced by the draft Rules to enable care management funding for all participants to be pooled with their provider in a care management fund. Greater flexibility in the care management allocation of up to 15 per cent of SaH packages is required to effectively deliver services to high-acuity older Australians. In addition, the new care management cap should be delayed by 12 months to 30 June 2026 to enable adequate support for older Australians through this crucial component of care.
- Shortfall in services for interim budget individuals: CHA is very concerned that the system of interim budgets in Sections 194-5 and 204-5 of the draft Rules embed a rationed aged care system that is not designed to meet the needs of older people when they are needed, but rather, envisages that they will have to wait for the care they require, with significant potential for negative outcomes.
- The financial hardship threshold amount should be 2.25 times the basic pension to bring the financial hardship provisions into alignment with the maximum Refundable Accommodation Deposit amount and enable clear and simple messaging to older people and their loved ones.
- Provide clear grandfathering arrangements for the cohort of older people who don’t have an approved package on the National Priority System prior to 1 July 2025 but who have an agreement with a Support at Home provider to receive a Home Care Package.
CHA Submission on Release 2b Rules for Funding of Aged Care Programs – 4
Rules regarding residential aged care
- Review of the Accommodation supplement: To keep pace with the costs of supplying accommodation, the accommodation supplement should be reviewed immediately and increased to ensure the costs of providing accommodation are adequately funded.
- Access to additional services to meet older peoples’ needs and preferences: The draft Rules should be amended so that older people have the option to remain on their existing Extra Service Fee and/or Additional Service Fee arrangements and instead, have the choice of moving to Higher Everyday Living Fee (HELF) arrangements on 1 July 2026. The Department should also perform a review of the impact of the HELF model on older peoples’ access to services to meet their needs and preferences.
Implementation issues and suggestions regarding the consultation process
Greater clarity and transparency is needed for older people and providers in relation to hardship application timeframes and grandfathering arrangements for some cohorts. It is also imperative to offer clear and detailed guidance on the means testing process and its implications for aged care recipients in both SaH and residential care. Government should take the lead on informing older Australians about means testing.
Specific recommendations have been provided in the relevant section.
The Department should release more extensive supporting information with the draft Rules which refers to the corresponding section of the draft Rules to ensure the sector is understanding them correctly.
