New government faces $20b of promises that need legislation

The Coalition is up to a year behind delivering almost $20 billion worth of budget promises, including recommendations from the aged care royal commission to deliver a new funding model and its efforts to boost the digital economy.

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Despite almost a year of parliamentary sittings,billions of dollars worth of promises dating back to last year’s budget are waiting for enabling legislation so they can be put into action.

Caught up in the delay is one of the key arguments of the election campaign around providing registered nurses in aged care facilities 24 hours a day, every day. In the final sitting days before parliament was dissolved for the election, the Coalition was unwilling to pass amended legislation that had won support in the Senate, and Labor sat on its hands ahead of a major pre-election promise.

The result is likely a delay, potentially by months, in the implementation of the measures aimed at helping those in aged care.

The Pre-election Economic and Fiscal Outlook (PEFO), released by the Treasury and Finance departments last week, revealed parts of a combined $54.3 billion worth of policy promises were on government press releases but not yet law.

Of that $54.3 billion, $19.7 billion out to 2025-26 is tied up in proposals that were promised in either last year’s budget or December’s mid-year budget update. The rest was announced in this year’s budget on March 29 with no time to proceed with the items.

Ten separate policy commitments account for most of the $19.7 billion, including five separate measures covering aged care. The most significant of those was debated on March 30, the day after Treasurer Josh Frydenberg handed down his pre-election budget.

The legislation covered a new funding model for aged care, screening requirements for aged care workers and approved care providers, a new code of conduct for workers and providers and stronger rules around refundable accommodation deposits and bonds.

In the March 30 Senate sitting, a key amendment was attached to the bill from independent senator Rex Patrick to transition to 24/7 care by registered nurses. It provided scope to small and rural facilities struggling to find staff more time to do so.

Labor and the Greens backed Senator Patrick’s amendment that was passed with the bill about 9pm the day after the budget. The Coalition did not oppose the bill in the upper house.

The following day, with the bill back before the House of Representatives, Centre Alliance MP Rebekha Sharkie started sounding out Liberal MPs who might cross the floor in the case of a vote on the legislation.

But rather than push the issue, Labor sat on its hands. That evening, Labor leader Anthony Albanese used his budget-in-reply speech to make his promise that every aged care facility would need a registered nurse on site 24/7.

The House, and the 46th parliament, adjourned soon after Albanese’s speech, killing the bill that had been passed by the Senate.

The bill will have to be reintroduced to the House and go through a Senate that may be substantially different to the one that passed the legislation on March 30.

Some elements of the package are not due to start until October 1, giving the next government limited time to put them in place. The new parliament will have to work quickly to pass the aged care bill. How smooth that passage is will depend on the results of next month’s election. Even if the passage through the lower house is fast, the Senate only takes its seats from July 1.

The Sydney Morning Herald and The Age approached Finance Minister Simon Birmingham’s office for comment about the delayed spending, and were directed to Aged Care Services Minister Richard Colbeck.

Colbeck said the Coalition was committed to the legislation, accusing Labor and crossbench senators of political point-scoring over the issue.

“Their attempt to bring forward, by two years, a key recommendation of the royal commission mandating 24-hour onsite nurses risked draining staff from regional aged care facilities or forcing some to close,” he said.

“We are fully committed to these reforms and any suggestion to the contrary is nothing more than cheap politics.”

Shadow finance spokeswoman Katy Gallagher said Labor was committed to round-the-clock registered nurses in aged care facilities.

But she said Coalition promises would be examined if Labor won the May 21 election.

“We will be putting a ruler over all spending,” she said.

Outside of aged care, Coalition promises from last year that still require legislation include sections of Scott Morrison’s $1.2 billion digital economy strategy and parts of the $1.6 billion 10-year emissions reduction road map that was announced in April last year.

The departments compile PEFO on the expectation that all of the proposals eventually become law. But they warn if they don’t, the budget could be affected.

“Where legislation is not passed by the scheduled commencement date, is passed with amendments to the original decision, or is rejected, there is a risk of a variation to the fiscal position outlined in the PEFO,” they said.

Apart from the measures outstanding from last year’s budget and Mid-Year Economic and Fiscal Outlook, there are $34.6 billion worth of new proposals in the March 29 budget. Of those, the departments estimate $19 billion worth need to be legislated.

The departments noted many of these new policies, which take effect from or before July 1, can be legislated later without having a material impact on the budget bottom line.