The call for increased consumer contributions, as advocated for almost two years by our Plan B advocacy, has been championed in the latest report by the Committee for Economic Development of Australia (CEDA).
“Funding arrangements in the sector must be addressed. There must be an expanded role for self-funding and user contributions. While there will always be a need for government funding, and some older Australians will not be able to contribute to their care costs, those who can afford to should contribute more to their care,” stated the CEDA report, “Duty of care: Aged care sector running on empty”.
“The Federal Government should consider limiting subsidised residential-care places and introduce a user-pays system for aged care clients who meet certain income or asset thresholds. This will also allow for greater choice and consumer-driven care to meet the changing needs of the population.”
One in seven aged care home beds sits empty with many operators operating below full capacity due to worker shortages, with some operating at 50% capacity, states the report.
Cassandra Winzar, Chief Economist at CEDA, criticised the Federal Government’s response to the workforce shortage. Previous CEDA research found there would be a shortfall of at least 110,000 direct-care workers by 2030.
“Not enough has been done to fix this,” she said. “There must be more action from government to make meaningful progress on closing this workforce gap.”
“The time to act is now,” he said.