Every day, first thing, we spend 30 minutes discussing what is going on in the aged care space. This week, we are hearing concerns about the extent to which the Government will fund the leave and entitlements arising from the Fair Work Commission’s 15% pay rise for direct care workers in July.
A number of providers have voiced worry that the Government may fund only a portion of the increase in entitlements.
“When the Government were doing the 15% pay increase, the Minister came out and said we will fully fund the cost of that, including leave liability,” said one CEO.
“The understanding that seems to be happening now is they’re going to fund 50% of that leave liability through the grant process, and the rest through other mechanisms, like CPI.”
As we reported in mid-October, the Department of Health and Aged Care had yet to disclose the portion of leave entitlements that would be funded.
On Wednesday, the Government published a ‘Forecast Opportunity View’ on GrantConnect, the Government’s grant funding website, which suggests that the grants will only cover 50%.
“The Aged Care Wages – Historical Leave Liability Grant Opportunity will provide $130.9 million in funding to fund aged care providers for 50% of the cost associated with paying higher leave entitlements for workers that have had their wages increased as a result of the FWC’s decision,” it reads.
It also states: “This Forecast Opportunity provides information relating to a possible upcoming grant opportunity, likely to be available during the below Estimated Period of Release. Any details relating to this Forecast Opportunity may change with the published Grant Opportunity.”
Clear as mud?
Last week, the Department told The SOURCE: “A grant program is being established in recognition of the increased value of accrued leave liabilities.”
Operators say their expectation was that the grants would cover 100% of the leave liabilities.
Will the Department provide further clarification?
