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Labor Delays Start Date for Aged Care Changes, Costing Budget $1 Billion

  • The Australian government delayed the start of the new Aged Care Act by four months from July 1 to November 1, 2025, to give providers more preparation time.
  • This decision came after intense lobbying by aged care peak bodies and sector warnings that the original July deadline was unrealistic and could cause severe disruptions.
  • The delay allows providers to finalize systems for pricing, contract charges, and travel expenses, aiming to reduce confusion and ensure continuity of care during the transition.
  • Health Minister Mark Butler stated that while the reforms are expected to generate savings totaling $12.6 billion across an 11-year span, initial expenditures will increase by $930 million over the next four years; OPAN CEO Craig Gear described the postponement as a cautious but essential move, emphasizing that older individuals require these changes to access adequate aged care.
  • The postponement aims to improve aged care delivery and minimize disruption, though leaders expect ongoing challenges and emphasize that the Act must be implemented carefully to protect older Australians’ rights.
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Have a Go News broke the news in on Wednesday, June 4, 2025.
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