Government policy
New IT, 24-7 RN changes and risk monitoring: where will the $600M pledged for aged care in MYEFO be directed?

IT changes required for the implementation of the new Aged Care Act from 1 July 2024 – just over six months away – have been singled out for a funding boost in the Government’s Mid-Year Economic and Fiscal Outlook (MYEFO).

The MYEFO – released today (Wednesday 13 December) – reveals that the Government will tip an additional $596.1 million over four years from 2023-24 plus $27.3 million per year, including:

  • $202.4 million over four years from 2023-24 (and $3.4 million per year ongoing) to support and deliver the ICT changes needed for the new Aged Care Act
  • $85.6 million over four years from 2023-24 (and $10.8 million per year ongoing) to develop and test a framework for the delivery of virtual nursing support in aged care, and for refinements and ongoing operation of the 24/7 Registered Nurses and care minutes requirements for residential aged care, including an additional two years of exemptions for small providers unable to meet the 24/7 Registered Nurse on-site requirement
  • $69.4 million over three years from 2023-24 to improve the Aged Care Quality and Safety Commission’s ICT governance, delivery processes and internal cyber security capability
  • $44.0 million in 2023-24 to support Round 2 of the Aged Care Registered Nurses’ Payment Program
  • $42.7 million over four years from 2023-24 to improve the Aged Care Quality and Safety Commission’s Risk Based Targeting and Information Sharing system to better identify at-risk aged care service providers
  • $34.7 million in 2023-24 in additional funding for a grant program to fund historical leave provisions for Commonwealth-funded aged care providers following the Fair Work Commission’s Aged Care Work Value Case
  • $31.4 million over four years from 2023-24 (and $8.8 million per year ongoing) to fund the Multi-Purpose Service Program and the National Aboriginal and Torres Strait Islander Flexible Aged Care Program following the Fair Work Commission’s 2023 annual wage review decision to increase minimum award wage rates from 1 July 2023
  • $30.8 million over two years from 2023-24 to extend the additional 9,500 Home Care Packages provided in the 2023–24 Budget into 2024-25 before gradually returning the number of packages to the baseline level as at 30 June 2023

Separately, the Department of Health and Aged Care will also provide $317.4 million over two years from 2023-24 to provide continued COVID-19 support for aged care, including a new Aged Care Outbreak Management Supplement to commence from 1 January 2024.

You can read the full MYEFO papers here.

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