Aged care providers could be fined more than $1.5 million for the most serious breaches under new laws

Just months after Yvonne Buters’s parents entered residential aged care, both of them were gone. 

Her mother, Rose, died after just eight weeks in the facility, following repeated falls out of bed. 

Then, just four months later, a wound on her father Henk’s foot that Ms Buters said was not adequately treated developed into a necrotic ulcer, leading to his death. 

“Family were there every day, were constantly bringing up issues with the facilities, but things still went badly wrong,” Ms Buters said.

“After going through the complaints process there was no justice for my parents — and no adverse outcomes for the provider.”

The federal government on Thursday unveiled its plans for a “rights-based” aged care act, responding to a recommendation in the aged care royal commission’s final report handed down more than three years ago.

Stronger protections for older Australians and civil penalties including fines of more than $1 million for the most serious breaches by providers are part of sweeping changes to the aged care system that Prime Minister Anthony Albanese described as “once-in-a-generation reform”.

The laws will include a statement of rights for older Australians in aged care, a positive duty on providers to uphold those rights, new quality standards, and a regulator with greater investigative powers, alongside a shake-up of the fee structure for both residential and in-home care.

There are also plans for a new independent complaints commissioner, which Aged Care Minister Anika Wells said would be “a voice to raise issues, to have them heard and taken seriously, with the expectation that providers will work to address them or face serious consequences”.

The reforms come years after the two-year royal commission uncovered widespread abuse and neglect in the sector.

“We’re talking about people dying because of inadequate care, abuse and neglect,” said Ms Buters, who is part of the grassroots advocacy group Aged Care Reform Now. 

“We want to see firstly that people aren’t harmed in aged care, that would be the priority, but then if they are there are consequences and there is justice for the individual.”

Providers could be fined under new laws

An earlier version of the bill included criminal penalties for providers who breached standards, but they were scrapped as part of Labor’s negotiations with the Coalition. 

Shadow Minister for Aged Care Anne Ruston said the removal of criminal penalties from the bill was prompted by concerns that it would spark an exodus of capable workers from the sector due to fears of punishment. 

Instead, there will be civil penalties for providers who step out of line, including fines of more than $1.5 million for serious failures that lead to a person’s death.

The Heath Services Union, which represents aged care workers, told the ABC that it was disappointed to see that the harsher penalties had been removed.

“We understand why the government has had to do this, but it is disappointing that the conservative side of politics continues to take this knee-jerk ideology against decent quality standards for aging Australians,” national secretary Lloyd Williams said.

In consultation with the Coalition, Labor also agreed to remove a mandated requirement for aged care providers to set up a “worker voice” — a group of staff that would give feedback on staffing levels and other workplace issues.

The provision for the staff body remains in the bill that was introduced on Thursday, but the ABC understands Labor has committed to removing it.

Mr Williams said empowering workers groups to speak up was crucial to ensure aged care homes met their minimum staffing standards.

“It is disappointing that the Liberals have forced a watering down of those standards,” he said.

“It was workers who blew the whistle on rationing of sanitary pads and residents being fed jelly and frankfurts.”

Peak bodies say more scrutiny needed

The peak body representing older Australians said it was pleased to see a positive duty for providers to uphold rights among other protections for aged care residents, but they would need more time to scruitinise how it will work.

“There are certainly improved regulations and better quality standards in there and also, importantly, a more robust and effective complaints system,” said Patricia Sparrow, chief executive of the Council on the Ageing (COTA).

She welcomed the statement of rights for older Australians in aged care, but ensuring it was properly monitored and enforced “will be really important”.

Chris Grice, the chief executive of National Seniors Australia, also welcomed the introduction of the bill but said it would take some time to go through all the details. 

“I’d say there were surprises …  we just don’t understand the full extent at the moment,” he said.

“Obviously this is all part of that process, they’ve had to work with the opposition to get this across the line, and so there’s some stuff in there that we weren’t necessarily aware of in the negotiations.”

The Aged and Community Care Providers Association, which represents providers, said the proposed changes “put older Australians first”.

“A new act was the most fundamental recommendation of the royal commission and one that had universal support, including from providers,” chief executive Tom Symondson said.

“Without it, genuine reform for aged care would essentially be dead.”