Yesterday delivered the positive news that the Federal Government has invested nearly $400,000 to investigate consumer contributions in aged care – but the timing suggests that the sector is being set up for disappointment in next week’s Federal Budget.
As The Weekly SOURCE reported here, consultancy firm Kantar Public Australia was commissioned in mid-February to look at consumers’ understanding of aged care funding options – with the contract due to end last month.
Its timely reveal – less than a week before the Budget – would seem to indicate that the Government wants to show that it is making progress on tackling the growing funding gap for aged care.
But combine this news with its announcement two weeks ago that aged care expenditure was facing an almost $5 billion blow out this year alone and it doesn’t bode well for the 9 May Budget.
This year’s Federal Budget must address the 15% wage increase for aged care staff as well as the ongoing Royal Commission reforms – today's announcement has confirmed that the Government will deliver on the wage increase.
But with the policies behind the Budget months in the making, it seems increasingly unlikely that the sector will otherwise receive a major boost on Tuesday.
Plan B doesn’t need a Budget
The good news?
Delivering a fairer and more equitable system for older Australians and their families doesn’t require a Budget.
There is a raft of measures that would increase consumer contributions to aged care – and require little more than a signature to turn into reality, including:
- Adjusting the means test threshold on the family home (currently set at $186,000 when the average family home is valued at $881,000 according to the ABS)
- Uncapping of the annual and lifetime caps for means-tested care fees (currently set at $31,706.83 per year or $76,096.50 over your lifetime)
- Uncapping the Basic Daily Fee which covers the cost of delivering meals, laundry and other hotel services (currently set at 85% of the single rate of the Age Pension, which is $58.98 per day, or $21,527.70 per year and was inherited from the hospital system)
- Removing the current $550,000 cap on Refundable Accommodation Deposits (RADs) which has sat at the same rate since 2015
Of course, the Government should continue to fund care, accommodation and services for those that cannot afford to pay.
But these are simple measures that could help to ease the burden on what will be an increasingly constrained Budget.
More good news
The new Aged Care Act – which offers the opportunity to enshrine fairer and increased consumer contributions in the legislation – is also on its way.
A spokesperson for the Department of Health and Aged Care told The Weekly SOURCE:
“Broader public consultation on an exposure draft of the Bill is planned for later in 2023, which will afford all stakeholders the opportunity to provide feedback on the proposed legislative reforms.”
The message: the green shoots are there – just don’t hang your hat on Jim Chalmers.
