Patrick Dodson (WA, Australian Labor Party) Share this | Hansard source

I rise to talk about the Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022. As its title describes, this bill legislates several recommendations from the final report of the Royal Commission into Aged Care Quality and Safety. All but one of the measures in this bill were included in the former government's bill, which lapsed when the last parliament was prorogued. The one new measure relates to star ratings that will provide greater transparency and accountability in the aged-care system. Star ratings will be published online for all residential aged-care services so that everyone will be able to make more-informed decisions about aged-care providers.

I agree with the royal commission's observations that it's critical for the public to have good information about the performance of individual services. The system of star ratings will be an essential tool in differentiating between aged-care services—essential both to those who are needing to choose an aged-care provider and to those who are receiving those services. As the royal commission said, people receiving aged care have 'a right to know about the performance of their service provider and alternatives so that they can make informed decisions about whether to change providers'. Then, of course, families and friends, advocacy organisations, policymakers, legislators and the media should also be able to access the information and guidance that a star rating system will provide.

The star rating system that Labor's legislation will deliver will replace the service compliance rating system which the last government introduced. That system, as the royal commission reported, falls well short of what is needed. That's because, under that inadequate and discredited system, services that meet all minimum standards and have no current sanctions are automatically given the highest ratings. That's not good enough in our book because that rating system does not differentiate between providers who just meet the standards and those who are outstanding. Our scheme will allow older people and their families to make meaningful comparisons of the quality and safety performances of providers.

Our rating system will give comfort and confidence to both those needing to enter aged care and those who are already receiving care. A good rating will be a reflection of good governance, and this bill will serve to strengthen the governance of approved providers. The Aged Care Quality and Safety Commissioner will be given powers to take enforcement action for substantiated breaches, such as being able to issue a civil penalty or a banning order. The royal commission was not impressed with the quality of governance across the aged-care sector. It's pretty clear that was the case. The commission gained plenty of evidence to support its findings that the level of substandard care was 'unacceptably high', to put it mildly. As it said in its final report, if all aged-care providers had good governance arrangements in place, it is highly likely that the level of substandard care would reduce significantly.

The final report quotes the Governance Institute of Australia, which explains that values and behaviours determine and define organisational culture. The governance arrangements reflect and promote the culture of an organisation. We in the government agree with the royal commission that the existing governance arrangements and requirements do not provide a sufficiently strong basis for the governance and leadership of aged-care providers. From 1 December this year, approved providers and their governing bodies will be required to meet new responsibilities. The new measures will improve leadership and culture. The emphasis here will be on transparency and accountability to ensure that the focus of approved providers from the top down is in the interests of those in care.

New reporting responsibilities will help those in care and their families better understand the operations of providers. Approved providers will be required to notify the Aged Care Quality and Safety Commission of changes to key personnel. Further, there will be increased financial and prudential oversight of the aged-care sector. In particular, this legislation will increase financial and prudential oversight of refundable accommodation deposits and bonds. The Aged Care Quality and Safety Commissioner or the secretary will be able to request information or documentation from a provider or borrower of a loan made using a refundable accommodation deposit or bond. It will be an offence if a borrower does not comply with a request. Rigorous financial and prudential oversight was seen by the royal commission as critical if we are going to see any improvement in the aged-care system. It will protect taxpayers' investment in aged-care services and will help identify potential risks to the quality and safety of aged care.

While I'm on the subject of safety, it is important to note that this bill will expand the Serious Incident Response Scheme from residential care to home care and flexible care delivered in a home or community setting, from 1 December 2022. The royal commission noted that the need for oversight of allegations of abuse and neglect in home settings will increase as more people receive aged care in their homes for longer. Those people will also most likely have increased level of frailty, cognitive impairment, or both. As the commission said:

Frailty is directly linked to vulnerability.

Any serious incident response scheme must have the capability to detect patterns in reports that indicate an ongoing risk to the safety of people receiving aged care services.

The royal commission heard a litany of horror stories of abuse and exploitation of elderly people in care. This legislation will ensure that individuals, including persons with a disability, who are subjected to cruelty and inhumane or degrading treatment can be assured that the incident will be promptly reported and impartially examined by the relevant authorities. Further, it extends protections for people who report abuse or neglect so that they don't face repercussions such as civil or criminal liabilities for reporting an incident.

This legislation is long overdue, and that's why the Albanese Labor government has introduced this bill at the very first available opportunity in this 47th Parliament. The Albanese government is determined to protect all people in aged care, especially those at risk of abuse and neglect at the hands of unscrupulous and uncaring operators. We are determined that people who place their elderly and infirm family members in aged care should have peace of mind that their loved ones are being looked after and well looked after. The whole nation has been shocked by the harrowing accounts of abuse and neglect that have been revealed by the Royal Commission into Aged Care Quality and Safety, whose investigations and reports have helped to chart this new course of reform. I commend the royal commission for its careful and considered investigation and for its comprehensive report.

This legislation is a first response to that report. We have more legislation in the pipeline that will further improve care and quality standards. The Aged Care Amendment (Implementing Care Reform) Bill, when it is enacted, will implement another three of Labor's election promises. Importantly, residential care providers from July next year will have to have a registered nurse on site at all times. We also want to cap the amount that providers can charge for administration and management. As the aged care minister, Anika Wells, said when she introduced legislation in the other place last week:

The royal commission report is riddled with examples of people whose lives were up-ended by astronomical fees, by home care packages that were eaten up in administration costs and management charges that reduced care instead of aiding it.

And last, the bill will honour Labor's commitment to better transparency about how much providers spend on care, nursing, food, maintenance, cleaning, administration and profit. The bill will require the secretary to publish this information.

This government is serious about bringing about real change to the aged-care sector. Legislating our concerns will serve to improve the lives of those in care and give comfort to their families, and that cannot come and happen soon enough.