The Morrison Government and Labor Opposition’s decision to defer the Aged Care and Other Legislation Amendment (Royal Commission Response No. 2) Bill 2021 until a new Parliament is in place is likely to see key reforms delayed – and risks leaving the Government’s five-year timeline in tatters.
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In short, the Bill had survived the Senate with amendments, but wasn’t debated.
But on its return to the House of Representatives, Labor and the Government agreed that it would be debated on the next sitting day.
With Prime Minister Scott Morrison widely expected to call the election within days, the Bill has effectively been killed in the near-term.
The political motivation is understandable.
Independent Senator Rex Patrick had successfully amended the Bill to include a 24/7 registered nurse requirement in residential care.
Despite Opposition leader Anthony Albanese pledging that this measure would be introduced as part of his Budget Reply, Labor has acknowledged in recent days that this would be a challenge if the workforce was not increased.
But it is a poor example of politics scuppering progress – and a disappointing outcome for all stakeholders: aged care recipients, their families, staff, and providers.
Critically, the move could see delays to two significant reforms that are set to potentially increase the funding envelope for operators: the rollout of the Australian National Aged Care Classification (AN-ACC) funding model in October, and the establishment of the Independent Hospital and Aged Care Pricing Authority, which was due to give its first pricing advice from 1 July 2023.
Providers are already scratching their heads over what the new AN-ACC starting price of $216.80 will deliver in real terms because of delays in the Government’s shadow assessments.
If the Fair Work Commission (FWC) hands down a wage rise for aged care workers in July – and the new Government chooses to give that responsibility to the Pricing Authority – any pay increase could take more time to implement.
With workforce shortages already at critical levels and an election campaign due to be called, this is not the time for the sector to sit still.
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