The 2024-25 Budget papers have revealed the new start date for the new Aged Care Act – and flagged further increases to aged care wages in the future.

Disappointingly for the aged care sector, the Aged Care Taskforce's recommendations were not even mentioned, let alone giving an insight into any possible future revenue streams.

The Budget costings reveal that the Government has agreed to defer the commencement date of the new Aged Care Act to 1 July 2025 – confirming media leaks last month that the key Royal Commission reform was set to be delayed again.

Media reports that the Government would also include ‘contingency’ funding for a further increase in aged care wages also appear to be false, with Health Minister Mark Butler only hinting at “more increases in future”.

“In March this year, the Fair Work Commission made a further work value decision to increase award wages for many aged care workers,” read his press statement.

“We anticipate the final decision around mid-year.”

Instead, the Government will provide just $2.2 billion over five years from 2023-24 to deliver on its aged care reform agenda and to continue to implement recommendations from the Aged Care Royal Commission.

Analysing the cash to flow into the sector (and the Department) over the next 12 months, the figure is $954 million. 24,100 new Home Care Packages account for $531 million, and non-operator funds account for a large proportion of the balance.

The Aged Care Taskforce funding did not materialise and was barely mentioned in the Treasurer’s speech and the Budget Papers.

The $2.2 billion funding includes:

• $1.2 billion over five years from 2023-24 for sustainment of, and essential enhancements to, critical aged care digital systems so they remain legislatively compliant and contemporary and can support the introduction of the new Aged Care Act from 1 July 2025 – or $240 million a year.

• $531.4 million in 2024-25 to release 24,100 additional Home Care Packages in 2024-25.

• $174.5 million over two years from 2024-25 to fund the ICT infrastructure needed to implement the new Support at Home Program and Single Assessment System from 1 July 2025 – or $87.2 million a year.

• $110.9 million over four years from 2024-25 to increase the regulatory capability of the Aged Care Quality and Safety Commission (ACQSC) as part of the Government’s response to the Final Report of the Capability Review of the ACQSC, and to implement a new aged care regulatory framework from 1 July 2025 – or $27.7 million a year.

• $65.6 million over four years from 2024-25 to attract and retain aged care workers, collect more reliable data, and improve the outcomes for people receiving aged care services through existing aged care workforce programs – or $16.4 million a year.

• $37.0 million over two years from 2024-25 to reduce wait times for the My Aged Care Contact Centre due to increased demand and service complexity – or $18.5 million a year.

• $30.4 million over three years from 2024-25 to States and Territories to continue to deliver the Specialist Dementia Care Program – or $10.1 million a year.

• $21.6 million over three years from 2024-25 to extend the Home Care Workforce Support Program for an additional three years to facilitate the growth of the care and support workforce in thin markets – or $7.2 million a year.

• $11.8 million over three years from 2023-24 to implement the new Aged Care Act, including governance activities, program management and extension of the Aged Care Approvals Round or $3.9 million a year.

• $10.8 million over two years from 2024-25 to extend the Palliative Aged Care Outcomes Program and the Program of Experience in the Palliative Approach program to continue to upskill the aged care and primary care workforce to further embed palliative care capacity in the aged care workforce – or $5.4 million a year.

• $7.8 million over two years from 2024-25 to extend funding to aged care service providers in thin markets as they transition their business operations to accommodate the new Australian National Aged Care Classification (AN-ACC) funding model

• $4.1 million over three years from 2023-24 to undertake ICT preparation work to configure the new Basic Care Tariffs in the AN-ACC funding model – or $1.3 million a year.

• $1.7 million in 2024-25 for the Australian Dementia Network to continue preparing the health system for developments in biomarkers and disease-modifying therapies.

In a sign of the leaner times, the Government will also reprioritise unspent funds from the Commonwealth Home Support Programme over five years from 2023-24 to other sub-programs within aged care services – no dollar amount provided.

Integrating health and aged care

There are also several measures included in the Government’s $1.2 billion Strengthening Medicare package aimed at better integrating the health and aged care system, including:

• $610.4 million over four years from 2024-25 for States and Territories to invest initiatives that address long stay older patient challenges, unique to each jurisdiction – or $152.6 million a year.

• $190 million over three years from 2025-26 for the extension and redesign of the Commonwealth’s Transition Care Programme to provide short-term care of up to 12 weeks for older people after a hospital stay – or $63.3 million a year.

• $56.8 million over five years from 2023-24 for the expansion of the Commonwealth’s successful Acute to Residential Care Transition Service dementia program to transition long-stay patients with behavioural psychological symptoms of dementia out of hospital into a residential aged care home –or $11.3 million a year.

• $24.9 million over two years from 2024-25 for the continuation of the Comprehensive Palliative Care in Aged Care program to support States to deliver specialist palliative care services in residential aged care – or $12.4 million a year.