Ben Morton (Tangney, Liberal Party, Assistant Minister to the Prime Minister and Cabinet) Share this | Hansard source

The Aged Care Amendment (Aged Care Recipient Classification) Bill 2020 amends the Aged Care Act 1997 to enable a new procedure to classify recipients of residential aged care and some kinds of flexible care from 1 March 2021. The bill introduces the option to independently assess the relative care needs of individuals in residential aged care by empowering the secretary of the Department of Health—a very good fellow—to assess care recipients by using a new assessment tool and to process assessment results to assign new classification levels. The bill responds to sustained criticism from care providers, statutory authorities and academic researchers about how care recipients are currently classified, with residential aged-care providers being required to regularly assess residents by using the outdated Aged Care Funding Instrument.

Since the 2016 budget the government has committed to developing and testing a lasting alternative to the Aged Care Funding Instrument. Resulting from previous measures realised under this commitment, a potential replacement for the Aged Care Funding Instrument now exists, called the Australian National Aged Care Classification. This bill builds on the successful Australian National Aged Care Classification trial, conducted in 2019 and early 2020, and will allow a new classification using the Australian National Aged Care Classification tool to be determined for the entire residential aged-care population without affecting how the subsidy for providers is calculated. This is an essential step in preparing to respond to the findings of the Royal Commission into Aged Care Quality and Safety. Classification data obtained from these assessments will ensure that individuals, care workers, providers and the government all have the information they need to fully understand the new funding model. During the information-gathering period that the bill allows, providers will continue to use the existing Aged Care Funding Instrument to assess their residents, in parallel with the new procedure established by this bill.

I thank members for their contributions to the debate on this bill. This bill enables the next phase of residential aged-care funding reform, a phase of preparation that will enable the government, in the context of a response to the finding of the Royal Commission into Aged Care Quality and Safety, to quickly and seamlessly transition funding from the outdated ACFI. It sets the stage for a more contemporary, efficient, effective and stable funding approach—one that will promote investment in residential aged-care refurbishment and expansion and will support providers to better deliver the individualised care that residents need. I table an amended explanatory memorandum to the bill in response to matters raised by the Scrutiny of Bills Committee and the Senate Community Affairs Legislation Committee. I commend the bill to the House.

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