Some of Australia’s largest aged care providers – Catholic Health Australia (CHA), Opal HealthCare, Anglicare Sydney, and Southern Cross Care (QLD) – are calling on the Government to uncap the Basic Daily Fee for self-funded retirees ahead of the May Budget.
But the nation’s largest aged care peak, ACCPA, says a national debate is needed around consumer contributions.
The consortium says the Basic Daily Fee does not cover the costs of so-called ‘hotel’ expenses, such as food, cleaning, and laundry, which have risen sharply with inflation close to 8%.
The Fee is currently capped at 85% of a single person’s basic Pension, or $58.98 per day – regardless of the resident’s wealth or retirement status, and regardless of the cost of providing the services.
The consortium is proposing that the Basic Daily Fee be removed for self-funded retirees but maintained for those on the Age Pension – in line with Plan B, which advocates for consumer contributions to the cost of aged care for those who can afford to pay more in order to create a fairer system.
The CEO of CHA, which represents 12% of aged care facilities in Australia and 20% home care services, Pat Garcia, said, “Aged care providers are facing soaring costs but simply cannot meet them with this out-of-date fee cap in place,” he said.
CHA has also called for the increasing the value of the family home included in the means test for aged care in its pre-Budget submission.
