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The joint accounting bodies have proposed amendments to the New Aged Care Bill 2024 funding arrangements in a submission to parliament.
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Joint accounting bodies call for aged care bill amendments
08 October 2024
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In a submission to parliament, the joint accounting bodies proposed changes to the funding arrangement in the bill to ensure it provides simple and clear guidance.
The submission was made by CA ANZ, CPA Australia and the Institute of Public Accountants and stated it was made on behalf of their members and in the public interest.
Based on feedback received by the Department of Health and Aged Care’s public consultation, the joint bodies said the aged care funding arrangements “are too complex and difficult to understand.”
“We recognise the urgent need for reforms to take place as soon as practicable in the aged care sector,” the joint bodies said.
“However, it is crucial to have clear guidance regarding funding arrangements to ensure that these significant reforms run smoothly when they commence.”
According to the submission, the organisations have prioritised the funding arrangements for aged care, including means testing, subsidies, payment and fee arrangements.
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The bodies said they support the means testing of government subsidies for aged care.
The explanatory memorandum stated that “individuals accessing funded aged care services will have the services funded through commonwealth contributions and, in some cases, depending on the individual's means, individual’s contributions and fees.”
Though support was highlighted, it was stated in the submission that means testing needs to be fair, reasonable and equitable for all.
“This process should also be easy for individuals to easily determine their eligibility for aged care government assistance,” the bodies said.
It was indicated the bodies are still waiting on promised draft rules in chapter four of the bill, which provides the framework for aged care funding agreements.
The submission said the joint bodies’ main goal is to ensure that the aged care funding system works harmoniously with the retirement income system, particularly social security benefits and the superannuation system.
“We note that the Department of Health and Aged Care has issued some case studies to provide guidance,” the submission said.
“However, these lack sufficient detail for us to make an assessment as to how the new arrangements will work in practice.”
“We are of the view that, based on the structure of Chapter four and on the department's case studies, the proposed funding arrangements remain too complex and do not appear to have been designed to work harmoniously with other government policy areas.”
The joint bodies noted that the role of financial advisers is unclear within the bill, which is problematic due to their essential role in aiding aged care clients.
The bodies have called for this to be clarified to avoid confusion for those operating under the Corporations Act, such as financial advisers and accountants, to not be inadvertently captured under the definitions or provisions of the bill.
“We do not support any requirement that would require those providing aged care funding assistance or advice to hold, or to be authorised representative of, an Australian Financial Service License,” the submission said.
“Feedback from members indicates confusion in the market on this point, which in some cases has added to the cost of seeking advice from a range of professional advisors.”
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