Justine Elliot (Richmond, Australian Labor Party, Minister for Ageing) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I am very pleased today to introduce the Aged Care Amendment (2008 Measures No. 1) Bill 2008.

It is an honour and a privilege to introduce my first legislation as Minister for Ageing.

It is also an honour and a privilege to represent my constituents as the member for Richmond.

Richmond has one of the highest proportions of older people in Australia.

In this region, about 20 per cent of the population is aged over 65 years. This is compared with the national average of about 13 per cent.

Richmond now reflects the national future demographics of our country.

In 40 years it is predicted that 20 per cent of the Australian population will be aged over 65 years.

The ageing of our population represents an opportunity to define and rise to the opportunities and challenges that an ageing population provides.

Australia’s population is changing and, as the number of older people increases, so does the need to support them and their aspirations.

We must also embrace the contribution older Australians have made and continue to make to our society.

I believe our seniors built this nation through their hard work and commitment over the decades.

The federal government is building a modern Australia to meet the challenges of the 21st century. One of those major challenges is the ageing of the population.

There are 1.9 million Australians aged 70 years and over, who make up 9.3 per cent of the total population.

This number will double in the next 20 years as the ‘baby boomers’ reach old age.

Life expectancy for Australians is amongst the highest in the world.

For those born in 2005, it is 83.8 years for women and 78.7 years for men.

About four out of every 10 people aged 70 years and over are currently using aged-care services—one in 10 of those are in nursing homes.

Today, the average age of entry to nursing homes is 82 years.

The health and wellbeing of older Australians is of paramount concern to us all.

One of my key concerns as Minister for Ageing is that people who need aged care receive quality care and that care recipients and their families are treated with dignity and respect.

As at 30 June 2007, there were 2,873 nursing homes operated by 1,227 approved providers, providing a total of 167,070 aged-care beds.

Total Commonwealth funding for nursing homes will be $6.2 billion in 2007-08.

The population changes require a better system to finance aged care in Australia.

The 2007 federal budget provided for increases to government accommodation subsidies and resident accommodation fees for people newly entering nursing homes on or after 20 March 2008.

In order to implement these changes, the Aged Care Act 1997 must be amended. The Aged Care Amendment (2008 Measures No. 1) Bill 2008 makes these necessary changes.

In summary, the bill makes amendments to the Aged Care Act to simplify, and make fairer, the fees and charges paid by residents.

It also makes amendments to the accommodation supplements paid by the government for residents who cannot fully meet their own accommodation costs.

The bill allows for the phasing in of higher levels of government accommodation subsidies to ensure sufficient revenue to aged-care providers to support their continued investment in high-level care.

The new arrangements will combine, and better target, the current ‘concessional resident supplement’ and ‘pensioner supplement’ into a single asset-tested accommodation supplement.

The maximum level of the new accommodation supplement will also be increased.

Self-funded retiree residents with few assets will become eligible for accommodation assistance from the Australian government for the first time.

While those who can afford it will be asked to contribute more towards their accommodation, the level of government payments will increase for those who cannot meet the costs themselves.

The bill also addresses existing inequities in relation to income tested fees. Currently, self-funded retirees pay higher income-tested fees, because nearly all of their income is counted under the income test.

However, pension income is currently not counted under the income test. This disadvantages self-funded retirees compared to part-pensioners of similar means.

The bill removes current anomalies in the treatment of self-funded retirees by creating a new income test that treats all people in the same way and all income the same, irrespective of whether it is a pension or private income.

It is important to note three important safeguards that will ensure that residents are protected and that the changes do not adversely affect existing residents.

First, a resident’s accommodation charge will continue to be determined based on assessable assets at the time of entry to care and remain fixed.

In addition, a resident who has paid an accommodation charge and transfers within 28 days to another facility where they are liable to pay a charge will have that charge capped at the original level.

Second, the government will continue to place a cap on accommodation charges.

Third, residents with unrealisable assets will continue to be able to apply for hardship assistance if they cannot afford to pay their charges.

In addition to the changes relating to fees and charges, the bill also makes technical amendments to improve consistency and clarity, address unintended consequences of the operation of the legislation and streamline the administration of the legislation.

Subject to the passage of the bill through parliament, it is proposed that the new arrangements will take effect from 20 March 2008.

Medicare Australia, Centrelink and the Department of Veterans’ Affairs have developed changes to their systems to support the implementation of these measures.

In addition to the amendments required to the act, further detail will be outlined in amendments to the Aged Care Principles as well as in other delegated legislation.

In order to ensure the smooth implementation of these changes, my department will continue to work closely with aged-care providers along with care recipients and their families.

Among other things, the department will be issuing aged-care recipients and their families and approved providers with detailed information about the changes and their impacts.

The Aged Care Information Hotline will also continue to be available for people to contact the department directly with any queries or concerns.

I will also be working with and listening closely to the views of residents of nursing homes and approved providers.

I look forward to the coming months and years as we work together to provide fair, well-financed, sustainable and, most importantly, quality aged care for older Australians.

This bill is an important step towards achieving this goal.

Debate (on motion by Mr Anthony Smith) adjourned.