Senate report warns new Act may stand to ‘entrench failings’

A Senate Community Affairs References Committee report has cast a stark light on the implementation of reforms and the effectiveness of the new Aged Care Act.

The Committee‘s report on Aged Care Service Delivery, released on Wednesday, uncovers the true scale of delays faced by older Australians, detailing their “devastating, irreversible and sometimes fatal impact” on health and wellbeing.

It did not mince words, stating, “it is unacceptable that people are dying while waiting for assistance. Older people and their families deserve better.”

Waitlist delays, the Committee said, also carry “devastating, intergenerational consequences for family and friends undertaking caring responsibilities,” placing strain on informal carers.

The Older Persons Advocacy Network (OPAN) welcomed the Committee‘s report, noting that issues around the release of new Home Care Packages (HCPs) and Support at Home places, along with timely assessment for aged care services, were key themes consistent with their feedback.

“Delay of timely assessment for the need for services is the denial of rights at the first hurdle,” OPAN chief Craig Gear said.

“The Senate Inquiry report demonstrated that is what is currently occurring and must be urgently rectified.”

The Committee‘s report recommended that the government release all 83,000 HCPs promised prior to the 2025 federal election before 30 June 2026. They also urged provision for additional Support at Home places as a matter of urgency to meet the needs of over 200,000 older people waiting for care or assessment.

Furthermore, it called for timely and regular public information on assessment and care access waiting times, and for an end to the rationing of care packages.

The new Aged Care Act

The Inspector-General of Aged Care's 2025 progress report on the implementation of the recommendations of the Royal Commission into Aged Care Quality and Safety, released during the inquiry, also issued a warning.

“The required sector ‘transformation’ ha[s] not been achieved. Much of the reform agenda has been made up of disparate and sometimes disconnected changes that target specific issues rather than delivering systemic change,” the Inspector-General noted, suggesting that despite considerable activity, the fundamental systemic overhaul envisioned by the Royal Commission is yet to be seen.

The Committee echoed this concern stating that its report should “serve as a warning to the Albanese government that the new Aged Care Act may not only fail to implement the recommendations of the Royal Commission into Aged Care Quality and Safety [...] but may serve to entrench the failings of the previous systems.”

Catholic Health Australia (CHA) acknowledged the Committee’s main goal of releasing more home care packages had been achieved, noting the bipartisan decision as a “great outcome.”

“CHA and its members remain committed to the implementation of the new Aged Care Act, which puts the rights of older Australians at the centre of aged care delivery,” CHA director of aged and community care Alex Lynch said.

However, the Committee‘s report also highlighted concerns raised by CHA regarding insufficient support for care management within the new framework, an issue that disproportionately affects smaller providers, particularly those in regional, rural, and remote communities.

“The decision to reduce care management increases the risks of unplanned hospitalisations and earlier than necessary entry into residential aged care,” Mr Lynch said.

Key areas under the microscope

The Inspector-General’s progress report listed several critical reform actions needed to guard against poor outcomes for all older Australians, including:

• Rights-based, person-centred care: Ensuring the new legislated rights translate into tangible improvements for older people
• The introduction of co-payments: Examining the model, its unintended consequences, and potential for financial hardship or a two-tier system. CHA has consistently called for an adequate safety net to ensure that aged care remains accessible for everyone, “not just those with the deepest pockets”
• Equity and access for Aboriginal and Torres Strait Islander elders and communities: Addressing specific challenges faced by these vulnerable groups
• Parity of support for disability: Ensuring a smooth and equitable transition for individuals moving from the National Disability Insurance Scheme (NDIS) to aged care services
• Workforce quality, sustainability and detractions from care: A crucial area directly impacting every worker in the sector.

Workforce and digital readiness

For the aged care workforce, the Senate Committee‘s report acknowledges a number of significant challenges. There are broader calls for greater workforce investment and planning to prepare for the changes under the new Act and Australia’s ageing population.

This is particularly pertinent for regional, rural, and remote communities, where workforce challenges are persistent and complex, an has a significant impact on the quality of culturally safe care for First Nations and culturally and linguistically diverse (CALD) communities.

The allied health sector also faces difficulties in recruiting, training, and retaining staff.

Adding to the sector‘s woes is a critical lack of digital readiness. The Committee expressed alarm that government Information and Communication Technology (ICT) and IT systems have not yet been finalised ahead of 1 November 2025, despite the delay in the commencement of the new Aged Care Act.

Software details and testing environments are not fit for purpose, creating significant uncertainty for providers, it said.

“The lack of communication and transparency with providers is also of great concern [...] these matters must be finalised as soon as practical, so that providers have the certainty they need to make finalise their own ICT preparations,” the Committee said.

Consequently, the report recommends that the government finalise its ICT systems as a matter of urgency to ensure providers are ready for the Act’s commencement.

Coalition Senators, in their additional comments, highlighted the necessity of the inquiry following the Albanese Labor Government’s decision to delay the Act and the release of 83,000 Home Care Packages.

“Parliamentarians were inundated with complaints from members of the community and providers about the impact of the extensive delays,” they said.

They also pointed out that evidence confirmed the delay to the Act did not prevent the government’s ability to release new packages into the existing system.

Labor Senators, in their dissenting report, acknowledged the importance of ICT readiness, highlighting the government’s investment of $174.5 million over two years to fund the ICT infrastructure needed to support the Act’s commencement.