Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Social Services, Senator Fifield. Can the minister please update the Senate on how the budget delivers more choice and control to older Australians in aged care?

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

Thank you, Senator Bernardi, for the opportunity to share with colleagues more good news from the second Hockey-Cormann budget. I think all colleagues in this place know that often when it comes to social services and funding arrangements for social services the individuals that social services are intended to support are often invisible in those funding arrangement. That is certainly the case with home care in aged care. The current arrangements are not necessarily great from the perspective of the provider or the consumer. Providers have to apply for packages through the annual ACAR round. Consumers, after they are assessed by ACAT as being eligible, firstly need to endeavour to find a provider who has a package and, secondly, need to seek to find a provider who has a package at the level to which they are entitled, be it level 1, 2, 3 or 4.

I am very pleased to be able to advise colleagues that the budget provides that from February 2017 the money will no longer attach to providers. Instead, it will attach to individuals. So when an individual is assessed as being eligible and they are given a package they will then be able to take their package to the service provider of their choice, much like the NDIS, putting the individual at the centre and in charge. For the modest investment of $74 million, we will be able to change the system and the process so that $7.5 billion worth of home-care packages over four years can go through the individual.

But it is also good news from the perspective of providers that there will be a $3.2 million a year saving for providers, because they will no longer have to go through the ACAR process. So, after February next year there will no longer be— (Time expired)

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. It is indeed very good news. I would ask if the minister would be kind enough to inform the Senate of other budget measures that benefit older Australians in aged care?

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

We have also announced our intention to explore new ways to help the aged-care sector to adapt to changes in consumer demand and preferences, including through the market provision of accreditation services to help decrease red tape. Currently the Aged Care Quality Agency is the sole provider of aged-care accreditation services and we want to look to see whether a market for accreditation services can be opened up to provide greater competition.

We have also announced, importantly, that there will be a transfer of responsibility for the Aged Care Complaints Scheme, which currently sits with the Department of Social Services, to the independent statutory office of the Aged Care Commissioner. This is something that was recommended by the Productivity Commission and also the Walton aged care review. We think that it is good. It separates responsibility for policy and compliance with social services on the one hand and for complaints on the other.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I would ask the minister to please inform the Senate of any feedback from the aged-care industry on these measures.

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

Yes, I can. For instance, Catholic Health Australia have said that the 2015 budget 'ushers in welcome next steps in aged-care reform'. The Council on the Ageing have called the measures in the budget 'bold and important steps to a much more consumer focused aged-care system'. COTA goes on to say:

Older Australians will strongly welcome measures announced in the 2015 Federal Budget to give them direct control of their own aged care funding packages, have access to an independent complaints system, and introduce a streamlined approach to home care delivery,

HammondCare, a provider in New South Wales, welcomed the measures to reform the delivery of restorative care, saying that it will 'bring transformational change to the lives of older Australians'. Increasingly I think all colleagues want to see the individual at the centre and in charge. Our aged-care measures announced in this budget do that. The individual will be at the centre and they will be in charge.