COTA has applauded Labor’s hard line on underperforming aged care providers as the Opposition reveals plans to crack down on home care administration and management fees.
Labor has cited Grattan Institute research showing around 25% of home care fees going to administrative and management costs, and findings from the Royal Commission that these costs can reach as high as 50%, in its move to cap administration and management costs and require monthly reporting by providers to care recipients and their families.
“Whether you are in residential care or home care, Australians should have confidence the money they are paying is going where it should – towards their care,” said Opposition Leader Anthony Albanese.
“Labor is calling time on aged care providers who rip off vulnerable Australians. We know home care is a vital part of the aged care system – that’s why we want to make sure it is operating as it should, in the best interests of Australians.”
The Opposition has also promised to increase transparency in aged care funding and implement a General Duty of Care for aged care residents and staff, with jail time for any provider that deliberately breaches it; it will also establish a dedicated Aged Care Complaints Commissioner.
Ian Yates, Chief Executive of COTA Australia, hailed Labor’s move to establish a “tough cop on the beat” for the sector.
“This industry needs to get rid of its far too many bad eggs and lift the standards for all – something its peak bodies have consistently failed to do, so we welcome the industry regulator having the strongest powers.
“We have also long argued that beyond penalties, whoever is in government must ensure that the consistently poorest performing providers are taken out of the industry. The extra powers for the Quality and Safety Commission should be extended to include that, and we look forward to discussing this with Labor,” he said.
Labor has made aged care an election issue, with a five-point plan to reform the sector.
