Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Hansard source

I am very pleased to sum up the debate on the Aged Care Legislation Amendment (Increasing Consumer Choice) Bill 2016. The government announced significant reforms to aged care in the 2015-16 budget to support older people to remain living at home. This bill gives effect to the first stage of the home care reforms. From February 2017, home care packages will be assigned to assessed consumers, who will be able to direct government funding to the provider of their choice. Even more importantly, they will have flexibility to change their provider if they want to or, if they move to another area or state, they can take their package with them. The changes will also establish a consistent national approach to prioritising access to care through the My Aged Care gateway.

Building on this first stage, the government has also clearly signalled its intention to move to a single, integrated care at home program. The second stage of home care reform will further simplify the way that services are delivered and funded, and will commence from July 2018. These changes will provide consumers with more choice and control over their aged-care services and will reduce red tape and regulation for providers. At the same time, the reforms will strengthen the aged-care system to provide high-quality and more innovative services through increased competition. This major policy change has received widespread support and the implementation arrangements for these changes have been developed in close consultation with stakeholders, including the National Aged Care Alliance and groups representing consumers, carers and providers.

I thank all honourable members for their contributions to debate on this bill, for the interesting and passionate stories that they have told about the aged-care facilities in their electorates, the people they know and the understandings they have about the system and their broad support for the changes we are making—all with the individual firmly at the centre.

Moving to a market-based system, giving consumers choice and allowing providers to run their own services is central to the government's plan for the future. In its 2011 inquiry, the Productivity Commission identified a number of key weaknesses of the system, including that it is difficult to navigate and services and consumer choice are limited. The government has implemented a range of measures to address these weaknesses. Some were started by the previous government, but this government has landed those changes and we are going further—moving the system more in line with the Productivity Commission's recommendations.

As people are living longer thanks to better health and better health care, the demands on Australia's aged-care system are changing. Older Australians want more choice and control over the care they receive. This demand will only increase as the 'boomers' and future generations require aged-care services. Government is developing an aged-care system that can respond to this demand for the current and future generations of older Australians. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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