The Retirement Living Council (RLC) is calling on the Commonwealth to delay the rollout of the new Aged Care Act as the industry remains in the dark - and alarmed - over impending changes.
The new Aged Care Act will take effect from July 1, 2025 - 100 days from today - and will recognise retirement villages as places that can provide aged care services for the first time, but operators have raised serious concerns about the rapid pace of these reforms.
As warning bells ring, nervousness has intensified with new Australian Bureau of Statistics (ABS) population data revealing a 9.13 per cent increase in the number of Australians aged 75 and over. According to the ABS, this equates to 181,339 more people in this age cohort than last year.
As the countdown to the new Act continues, operators say they are concerned about:
- Liquidity standards: Requirement for retirement villages that also offer aged care services to hold sizeable cash reserves. If left unchanged, this reform will halt future housing supply.
- Client anxiety: Almost 300,000 current and soon-to-be elderly clients are anxious due to insufficient information about the changes. It is unclear what contributions they will need to make to fund their care and how much services will cost because of Act changes.
- Unprepared staff: Thousands of care staff need urgent training, but the rushed rollout leaves them unprepared to support clients effectively before July 1, 2025.
- System overhaul: Providers need time to update, test, and train staff in the new systems and technology. The lack of guidance and testing time poses a risk to service delivery.
- Financial strain: Without clear guidance on new charge rates and certainty about how to bill for services, providers face financial strain, risking their ability to pay staff and deliver services to older Australians.
- Unknown policy: Government is yet to provide the new Aged Care Act Policy Manual, as well as important frameworks, forms and guidelines.
RLC Executive Director Daniel Gannon said Australia is facing a "silver tsunami," with the number of Australians aged over 75 set to increase by 85 per cent within the next 15 years.
"Australia is ageing, retirement villages and aged care facilities are operating at full capacity, ambulances are ramping at hospitals bursting at the seams, and housing supply is in deficit," Mr Gannon said.
"Rushing these important reforms at such a critical time is a risk we shouldn't be prepared to take."
When asked recently about the rush to deliver aged care reform, Prime Minister Anthony Albanese responded: "…we'll make sure that we get it right, and certainly none of it should be rushed." (ABC Radio Perth, March 13, 2025)
"We wholeheartedly agree with the Prime Minister about not rushing these processes, but as things stand there is too much important work still to be done, and not enough time for it to be completed," Mr Gannon said.
"A lot of the recent pressure clearly relates to an unrealistic July 1, 2025, commencement date for the new aged care system, begging the question about why this timeframe isn't delayed. As the Prime Minister has stated, none of it should be rushed.
"While complicated, the implementation of the new Aged Care Act should be delayed. It's a case of measuring twice and cutting once."
Mr Gannon said retirement village operators who also provide a continuum of care need more runway to digest, understand and embed the changes.
"These operators need time to comply with these changes, including staff training and overhauling technology systems to continue delivering high-quality services for older Australians," he said.
"New ABS data tells us that, in just one year, the number of Australians aged over 75 has risen by 181,339 people. This demographic silver tsunami should dictate more rigour in policy setting."
