The Federal Government's decision to defer price caps for the Support at Home aged care program protects older Australians from unintended consequences, Catholic Health Australia said.
CHA also strongly backed the announcement of consumer protections it had advocated for, including new powers for the Aged Care Quality and Safety Commission to order refunds where providers are found to be overcharging.
"As not-for-profit providers, we strongly support the Government's action to protect consumers from any overcharging in aged care," said Catholic Health Australia Director of Aged Care Alex Lynch.
"We also applaud the sensible decision to defer price caps, which would have reduced choice, undermined provider viability and lengthened already strained waitlists, particularly in regional areas and for higher-complexity services."
The price caps, which were due to commence on 1 July 2026, would have set fixed prices for each service type including nursing care, personal care, domestic assistance and meal support.
CHA had called for a deferral to allow the Independent Health and Aged Care Pricing Authority to assess prices while the new system was in operation before any caps were imposed.
"We are pleased the Government and Minister for Aged Care Sam Rae have consulted, listened and made the sensible decision to defer these caps which would have been counterproductive," said Mr Lynch.
"The Department has acknowledged that the vast majority of providers are not charging excessive or unfair prices in aged care so this was a solution without a problem."
Catholic providers have led advocacy efforts to defer price caps in favour of more appropriate consumer protections. Before a Senate committee on the Support at Home program earlier this year, CHA warned the caps were due within months but had not been finalised, let alone tested in operation.
CHA continues to support the Support at Home reforms and remains committed to a smooth transition that protects service availability for older Australians.
Catholic Health Australia: Catholic Health Australia is Australia's largest non-government, not-for-profit group of health, community, and aged care providers. Members operate 80 hospitals across Australia, providing around 30 per cent of private hospital care and 5 per cent of public hospital care, in addition to extensive community and residential aged care. CHA members provide approximately 12 per cent of all aged care facilities across Australia and around 20 per cent of home care services. Twenty-five per cent of members' service provision is in regional, rural and remote areas.
