Northern Grampians Shire Council to review community care services

Northern Grampians Shire Council will review future community care service options in response to sweeping aged care sector reforms. 

Council made the decision at a meeting in St Arnaud today, following Federal Government changes to the way aged care services are funded and delivered. 

The Aged Care Act 2024 and Aged Care Rules 2025 came into effect last month and have a fundamental focus on the rights and needs of older people. 

Northern Grampians Shire chief executive Brent McAlister said the changes were designed to give older Australians greater choice in relation to services and providers. 

“The services are moving from block funding – where council receives set funding to deliver services – to fee-for-service models, where funding follows individual clients who can choose their own provider,” he said.  

“As a result, more providers will likely enter the market to offer aged care services, which could make it difficult for council to remain cost-competitive, as these providers may deliver services more efficiently due to different cost structures, wage agreements and economies of scale.” 

Mr McAlister said the community care review would help council determine if it continued to be a service provider, or if its role changed to one of advocacy, navigation and community development.  

"Given we are a small rural council with a massive asset base, we are struggling financially,” he said. 

“Our community care services are not fully funded by the Commonwealth Government and rely upon substantial funding from ratepayers.  

“The change to move away from block funding represents a future financial risk, which is a key reason for the review.” 

Mr McAlister said the review process would start in January. 

“To help inform our future role in aged and community care services, we will embark on an extensive community engagement process to understand the needs, experiences and priorities of our older residents,” he said.  

“Part of this engagement will include a survey aimed at people who use our community care services or have family or friends who might need the services in the next three to five years. 

“We will have workshops in Stawell and St Arnaud to discuss what value council could provide in the event we withdraw from the service and where we could still play a valuable role. 

“We will also have drop-in sessions in Stawell and St Arnaud, enabling community members to speak with council representatives about the services, potential changes and the community survey.” 

Mr McAlister said further information and materials would be communicated over the coming weeks, including dates and times for community engagement opportunities. 

“It’s important to understand council has not made any decisions about how we will respond to the government’s changes,” he said. 

“This isn't a consultation to justify a decision already made – it's a genuine opportunity to help council understand what's most important to our community and for us to explore our options together.” 

Mr McAlister said Northern Grampians Shire Council was among 29 of 79 Victorian councils still delivering in-home community care services across the state. 

“Councils are still offering council-run home care services. Our review will weigh up a range of factors, including what matters most to our community,” he said. 

He said he did not want residents to fear their services would no longer be available. 

“If council's role changes following the review, we will work to ensure smooth transitions to quality providers,” he said. 

“The government funding for your care will not disappear – it will simply flow to different providers, who must comply with the new Aged Care Act’s standards of quality and safety. 

“We are committed to an extensive, transparent process as we seek to understand the impact of aged care reforms on both our organisation and our community.” 

Council currently provides aged care services under the Commonwealth Home Support Program, which includes in-home domestic support such as home and garden maintenance, meal preparation and delivery services, medical and transportation assistance, and respite care. 

Residents who wish to be notified when the engagement process opens can fill in a form online here or call council customer service on (03) 5358 8700.