AICD submission on Aged Care Bill 2024

The AICD submission noted that the Bill is an important reform milestone and should provide much needed certainty for aged care providers and older Australians.

While we retained concerns with certain elements of the Bill, we considered that on balance
it will result in management and governance improvements at providers with resulting care benefits
for older Australians.

Our submission focused on the Responsible Person Duty (the Duty) and additionally how the Duty aligns with the Code of Conduct for Aged Care (the Code). Our key points were:

• We strongly supported the amendments to the Duty. In particular, the removal of criminal liability and certain strict liability offenses that had previously been contained in the Exposure Draft are critical adjustments that represent a measured reframing of the Duty to reduce the very real concerns of providers and directors.
• While we remained of the view that the Duty is an unnecessary layering of additional liability on directors, we considered the changes have mitigated the real risk that the Duty would have resulted in an exodus of skilled directors and senior managers from the aged care sector.
• We strongly recommended the Committee consider whether volunteer directors of providers should be
  excluded from the penalty provisions of a breach of the Duty consistent with workplace health and
  safety law under the Work Health and Safety Act 2011 (Cth) and state equivalents. Excluding
  volunteer directors would be an important recognition of the key role of volunteers in the sector,
  particular at small and regional NFP providers.
• We recommended that the Code be harmonised with the Duty and reflects the distinct role of non-executive directors. In particular, we considered the Code should be simplified for responsible persons
  such that its central obligation is being aware and meeting the requirements of the Duty.