You may be aware that recent aged care reforms have presented significant challenges for providers. Less than three months into the new system, submissions to a Senate review of the Aged Care Rules have highlighted pressing issues. This document examines the main problems identified by those working within the aged care sector.
The Burden of Administration in Aged Care
One of the most significant concerns for aged care providers involves the administrative workload. You will find that new rules often bring extensive paperwork and complex processes.
- Complex Rules and Documentation: The peak body for aged care providers, Ageing Australia, noted "significant concerns" regarding the "cumulative administrative burden" of the reforms in their submission to the Senate Inquiry into the Aged Care Rules 2025. Roald Versteeg, General Manager Policy and Advocacy with Ageing Australia, stated that the new Standards are "overly complex and bureaucratic" and "require extensive documentation." He also mentioned that care plans have become "longer and more complex." Mr. Versteeg emphasized that "it is critical that the rules are workable, proportionate and aligned with contemporary clinical governance, workforce capability, and sustainable service delivery." (Roald Versteeg)
- Financial and Staffing Impact: Ageing Australia members report that this increased administrative load creates a growing "financial and workforce impost."
- Risk of Service Closures: Todd Yourell, CEO of St Andrews Village Ballina, warned that some aged care homes might close because of this added burden. Mr. Yourell explained, "The Aged Care Rules 2025 significantly expand documentation, evidencing and reporting requirements across quality standards, governance, restrictive practices, incident management, workforce oversight and provider accountability." He concluded, "Without recalibration, the Rules risk accelerating service closures, reducing residential bed supply and undermining access to care, particularly in regional Australia." (Todd Yourell)
To address these issues, Ageing Australia suggests the Senate Community Affairs Legislation Committee review requirements to identify what can be "simplified or removed." Mr. Yourell's recommendation is to change rules to "simplify documentation and evidencing requirements."
Funding Issues in Aged Care
Another area of concern is the funding model for aged care. Providers suggest that current funding does not match the actual cost of providing services.
- AN-ACC Funding Model: Both Roald Versteeg and Todd Yourell have pointed out that aged care funding under the AN-ACC model is not keeping pace with service delivery costs.
- Regional Cost Differences: Todd Yourell recommends that the Independent Health and Aged Care Pricing Authority consider "regional cost differentials" when setting prices.
- Further Funding Adjustments: Ageing Australia has also made several recommendations, proposing a review of the AN-ACC funding model. Their suggestions include:
- Increasing the Accommodation Supplement.
- Establishing an 8% floor on the Maximum Permissible Interest Rate.
- Increasing the care management cap for Support at Home to 15%.
Higher Everyday Living Fee (HELF) Concerns
You might also encounter issues related to the new Higher Everyday Living Fee (HELF). This fee was introduced to replace additional service charges.
- Increased Complexity: Todd Yourell noted that HELF has introduced "significant complexity for residents, families and providers."
- Impact on Providers and Services: This added complexity and administrative burden could lead some providers, especially Not For Profit organizations, to limit their use of HELF. Ageing Australia states that HELF requirements are "negatively impacting" services. This could reduce service offerings in the sector and limit options for individuals who want and are prepared to pay for additional services.
The Department of Health, Disability and Ageing is currently evaluating HELF. This review aims to assess if the legislation is "fit for purpose and is achieving its policy intent."
Ongoing Review of Aged Care Rules
The Aged Care Act 2024 requires certain Rules to be reviewed by the Senate within three months of their introduction. The Aged Care Rules 2025 were presented to the Senate on October 27, 2025, with submissions to the Senate Inquiry closing on January 23, 2026. The findings are expected to be reported soon.
Understanding these challenges is important for anyone involved in or affected by aged care reforms.
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Reference: https://www.theweeklysource.com.au/the-top-three-problems-with-aged-care-reforms/
