Thousands of aged care providers across Australia are on the brink of a crisis, as a late-stage decision by the Federal Government threatens to derail the transition to the new Aged Care Act, set to begin on 1 July.
More than 830,000 older Australians who currently receive support under the Commonwealth Home Support Program (CHSP) are at risk of missing out on services, due to the sudden introduction of new rules requiring individual service agreements—rules that are yet to be finalised.
Tom Symondson, CEO of Ageing Australia, said the last-minute decision has created chaos for community care providers and the people they support. “Being ready for the new Act was already near impossible, but this new decision crosses the line, making it truly impossible,” he said.
According to Symondson, the requirement came without warning, was not sought by providers or recipients, and landed without any consultation. “The goal posts have been moved. This new requirement has come out of nowhere,” he said.
The new obligation means that for the first time, every CHSP recipient—many of whom only interact with providers sporadically—must now enter into a formal agreement. These include people receiving occasional help, such as a lift to a medical appointment or delivery of meals.
Under current arrangements, no such agreements are required. Providers are now expected to prepare, negotiate, and finalise over 800,000 contracts in just over two months, despite not having the final guidance on what those contracts must include.
“The interaction with the system is very small for a large number of older people receiving services under the CHSP, but critical in keeping them independent and living in their own homes,” said Symondson. “Additional red tape and unnecessary, formal agreements will likely make many avoid services altogether, including those most in need.”
The new Act, part of a broader reform to improve aged care in the wake of the Royal Commission, was already posing heavy administrative burdens on providers. Many are replacing their ICT systems, hiring staff, and rewriting policies to meet compliance obligations. With the transition deadline looming, the lack of finalised rules for agreements is adding to the uncertainty.
Ageing Australia is calling for immediate action, asking the Government to delay the requirement by at least 12 months. The organisation is also urging exemptions for small rural providers, some of whom operate with grants as low as $10,000.
“This latest change may be the straw that breaks the camel’s back,” said Symondson, warning that without urgent intervention, services that keep older Australians safe, fed, and connected could grind to a halt.
The Department of Health and Aged Care is yet to respond to the concerns raised.
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