Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Social Services, Senator Fifield. There are important changes to help older Australians coming into effect on 1 July. Could the minister outline to the Senate the key elements of these changes?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I thank Senator Boyce for the question and for her outstanding contribution as chair of the Senate Community Affairs Committee. I think all my colleagues know that Australia's population is ageing, and therefore we need to have an aged-care system that is fit for purpose for the long term. Commencing 1 July, there is a new arrangement, which seeks to create a more consumer-driven aged-care system, but I want to emphasise first and foremost that, for those people already in residential aged care—whether they be receiving care or accommodation—their existing arrangements will be grandfathered.

While there will always be a safety net, we are asking people who can afford to to contribute to the cost of their aged care and accommodation. New means-testing arrangements will take effect from 1 July, which will see an asset and income test apply to both residential care and accommodation. There will also be annual and lifetime fee caps in place to make sure that the system is affordable over the longer term. For accommodation, the distinction between high care and low care is being removed, so consumers will have the option now of choosing a bond, a daily fee or a combination of the two—the choice will be theirs.

I should indicate that these changes were legislated under the administration of the previous government, and no minister in a new government inherits a clean slate. It may well have been the case that, had I been the minister in the middle of last year, some of these arrangements may have been a little different, but, nonetheless, in the broad, we do believe that these changes are a step in the right direction. I will, however, be monitoring the real-life working-out of these and listening to the views of consumers and providers.

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister also outline to the Senate how these changes to the aged-care system on 1 July will create greater consumer awareness and empowerment?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

As part of the 1 July changes, we are asking providers to offer greater consumer information to help consumers navigate through the aged-care system. I think all colleagues would be aware that one of the most common complaints from consumers and their families is how difficult it is to navigate the aged-care system, and those who have any personal family experience would certainly be able to attest to that.

The government's My Aged Care gateway will help empower consumers with the information that they need to make the decisions that are right for them. The contact centre and website will provide information on aged care; it will provide support for consumers to find services in their local areas and it will also provide referrals to assessment services and service providers. Callers to the My Aged Care call centre will, I should emphasise, be able to talk to a real person, which is so important for older Australians.

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister further inform the Senate of how these changes will lead to greater choice for older Australians and allow them to stay longer in their own homes?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I think, when most of us think about aged care, we tend to think about residential care, and people are often surprised when they discover that only five per cent of Australians over the age of 65 actually live in residential aged care. We know that most people want to live in their own home, and we want to support people to stay in their own homes. In order to do so, we are increasing the number of home-care packages, with an additional 80,000 over the next 10 years.

Crucially, these packages will all have to be delivered according to consumer-directed care, meaning that consumers will be at the centre and in control. That is the way that a system of care should be, and in the other part of my portfolio, with the NDIS, that is very much the case—the individual at the centre, in charge and directing their dollars to the service providers of their choice. I should indicate that we will be monitoring these changes very carefully. (Time expired)