(Alert updated 4 August 2022)
The reform agenda anticipated in the wake of the Royal Commission into Aged Care Quality and Safety (Royal Commission) has recommenced.
On 27 July 2022, the Government introduced two new aged care Bills to the House of Representatives:
- Aged Care Amendment (Implementing Care Reform) Bill 2022 (Care Reform Bill); and
- Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022 (Royal Commission Response Bill 2022).
The Royal Commission Response Bill 2022 quickly progressed through the House of Representatives, and passed the Senate on 2 August 2022 without amendment.
The Care Reform Bill was referred to the Senate Community Affairs Legislation Committee, with a report due on 31 August 2022.
Approved Providers should act quickly to ensure compliance with these Bills, with some reform expected as soon as 1 October 2022.
Below is an overview of these changes. We will publish more detailed alerts in respect of the proposed reform in the coming weeks.
Royal Commission Response Bill
The Royal Commission Response Bill 2022 closely mirrors the second tranche of legislative reform stemming from the Royal Commission introduced by the previous government. Despite this, there are some notable differences between the Royal Commission Response Bill 2022, and the previously introduced Aged Care and Other Legislation Amendment (Royal Commission Response No. 2) Bill 2021 (2021 Bill). The 2021 Bill lapsed at dissolution of the previous Parliament on 11 April 2022.
The table below is a summary of the Royal Commission Response Bill 2022 in comparison to the 2021 Bill:
Proposed Reform |
2021 Bill |
Royal Commission Response Bill 2022
|
Comment
|
| AN-ACC funding model to replace the ACFI. |
Yes |
Yes
|
The Government has made progress towards implementing this new care funding model. A number of publications have been released that can be found here.
|
| Screening of aged care workers, and governing persons, of approved providers. |
Yes |
No |
The Royal Commission Response Bill 2022 does not reproduce the amendments contained in the 2021 Bill in respect of screening obligations. |
| Star ratings. |
No |
Yes |
The Royal Commission Response Bill 2022 introduces a requirement for the Secretary of the Department to publish information about the quality of aged care provided through an aged care service, and the performance of the approved provider in relation to responsibilities and standards under the Aged Care Act.
|
| Code of conduct and banning orders. |
Yes |
Yes |
This introduces a Code of Conduct that will apply to approved providers and their aged care workers and governing persons. The Code will be based on the NDIS Code of Conduct.
This amendment in the Royal Commission Response Bill 2022 closely mirrors the 2021 Bill, although there are differences for which approved providers should be aware.
|
| Extension of incident management and reporting. |
Yes |
Yes |
The proposed amendments will extend the Serious Incident Response Scheme and incident management system requirements that apply in residential care to home care.
The Royal Commission Response Bill 2022 includes these amendments in the same manner as proposed by the 2021 Bill.
|
| Governance of approved providers |
Yes |
Yes |
These provisions introduce “suitability requirements” for key personnel as well as requirements for the structure of approved provider’s executive.
The amendments in the Royal Commission Response Bill 2022 differ slightly to their equivalent in the 2021 Bill. For example, the Royal Commission Response Bill 2022 interacts with the Care Reform Bill to increase transparency of information about approved provider’s operations.
|
| Information Sharing |
Yes |
Yes |
The Royal Commission Response Bill 2022 amends various Acts to facilitate greater information sharing between Commonwealth bodies in relation to providers and workers, particularly conduct that may put people who receive care, support or treatment at risk of harm.
This amendment in the Royal Commission Response Bill 2022 closely mirrors the 2021 Bill, although there are differences for which approved providers should be aware.
|
| Use of refundable deposits and accommodation bonds. |
Yes |
Yes |
The Royal Commission Response Bill 2022 amends the Aged Care Act to enable the Secretary or Commissioner to request information or documents from a provider or borrower of a loan made using a refundable deposit or accommodation bond.
This amendment in the Royal Commission Response Bill 2022 closely mirrors the 2021 Bill, although there are differences for which approved providers should be aware.
|
| Independent Health and Aged Care Pricing Authority |
Yes |
Yes |
The Royal Commission Response Bill 2022 amends the National Health Reform Act 2011 and the Aged Care Act to expand the functions of a renamed Independent Health and Aged Care Pricing Authority (Pricing Authority). The amendments also establish new governance arrangements for the Pricing Authority.
This amendment in the Royal Commission Response Bill 2022 closely mirrors the 2021 Bill, although there are differences for which approved providers should be aware.
|
| Restrictive practices |
Yes |
Yes |
The Royal Commission Response Bill 2022 introduces changes to regulation of restrictive practices to address unexpected outcomes in relation to the interaction with State and Territory guardianship and consent laws.
The Royal Commission Response Bill 2022 includes these amendments in the same manner as proposed by the 2021 Bill.
For more information please refer to our related alerts.
|
The Care Reform Bill
The Care Reform Bill intends to:
- Impose a responsibility on approved providers of residential care and flexible care to ensure at least one registered nurse is on site, and on duty, at all times at the residential facility from 1 July 2023; and
- Cap home care charges from 1 January 2023, so that home care providers have a responsibility:
- not to charge for ceasing to provide care (ie exit fees)
- to comply with such requirements as are specified in the User Rights Principles in relation to the prices charged by the approved provider for, or in connection with, the provision of care or services to the care recipient;
3. Improve transparency of information by requiring aged care services to make certain information publicly available, through amendment of the Information Principles from 1 December 2022.
How we can help
Please contact Victor Harcourt, Anita Courtney, Johanna Heaven, and Matthew Goessler or any member of our Aged Care Team for assistance.
If you would like to keep up to date with Alerts, news and Insights from our aged care team, you can subscribe to our mailing list here.
Other useful resources
Key Personnel obligations for all approved aged care providers take effect 1 December 2022
Russell Kennedy Key Personnel Package of Documents: Russell Kennedy has developed a range of resources that approved providers can purchase individually or as a pack to ensure compliance with the new requirements of key personnel. We have a Key Personnel Suitability Matters Information and Assessment Form and Guide to assist with gathering and assessing the information. We have letters and guides for key personnel explaining the changes, the regulatory context and their key obligations. We have also developed a template policy, as well as clauses for agreements and contracts.
Download our flyer here to find out about the key personnel package, and email rkagedcare@rk.com.au to find out about pricing and to purchase all or any of the resources available.