The news that the Productivity Commission's final report into aged care is now only a year away, has made the aged care sector heave a sigh of relief.

The terms of reference for the inquiry have been released by the Federal Government along with a proposed timeline. The draft report is supposed to be provided by the commission by December 2010. After the completion of the inquiry, which is expected to be concluded by April 2011, the Government will consider the commission's recommendations and declare a response at the earliest possible.

The progress has been given a warm welcome by the Campaign for Care of Older Australians.

CCOA said, "The terms of reference address our concerns regarding the considerable obstacles to providing quality care allowing for access and choice for older people within a sustainable system. We eagerly anticipate the Prime Minister's announcement of a new era for the care of older people this time next year".

The aim of the inquiry is to improve the aged care system as well as its relationship to the rest of the health system.

However, Australian Medical Association President, Dr Andrew Pesce opined that the terms of reference had failed to address medical care of the elderly in residential aged care.