The Federal Government’s decision to delay the start of the new Aged Care Act to 1 November 2025 will cost around $900 million over the forward estimates, Treasurer Jim Chalmers has confirmed following yesterday’s (4 June) unexpected announcement.
As reported by The Weekly SOURCE, Health and Aged Care Minister Mark Butler and the new Minister for Aged Care and Seniors, Sam Rae, announced the Government would recommend to the Governor-General, Her Excellency the Honourable Sam Mostyn AC, that the legislation be pushed back by four months.
Speaking during a press conference on the national accounts later that day, the Treasurer acknowledged the financial hit:
“The delay will likely cost in the order of $900 million over the forward estimates,” he said.
Still, Chalmers defended the decision, calling the aged care reforms “really important” to the long-term sustainability of the Budget.
“We shouldn’t forget that, even with this modest delay, the changes that were worked up by Anika and Mark and are being implemented by Sam and Mark are really important changes to make our budget more sustainable,” he said.
“You think about those areas where there is substantial pressure on the Budget, areas like aged care, like the NDIS, like interest costs, we have made good progress … these are really important reforms.”
In a letter to providers, Minister Rae said the additional time would be used to:
- prepare older Australians for the changes
- finalise operational and digital infrastructure
- develop clear implementation guidance and training
“It will also allow Parliament to consider an amendment Bill that finalises the Aged Care Rules and ensures the Act operates effectively,” the Minister added.
“I will work hand-in-hand with you, your workers, and older people to get the implementation right for everyone.”
