Catholic Health Australia (CHA), which represents 350 aged care homes and about 20% of home care services around the country, is calling on the Federal Government to increase capital assistance for aged care operators in thin markets by almost $300 million annually.
The $385 million allocated over two rounds of the Aged Care Capital Assistance Program (ACCAP), which is available to operators in thin markets, equites to only about one-eighth of the total value of applications, highlighting the volume of unmet demand.
In addition, the residential aged care sector has delivered a $5 billion loss over the last five years, deterring investment in infrastructure, particularly in regional, remote and rural areas where the losses are greater.
"Much more is needed to respond to the critical infrastructure needs in regional, rural and remote areas," CHA's Pre-Budget Submission 2025-26 states.
"CHA recommends the ACCAP be increased by at least $297.63 million per year, to support a sustainable aged care sector in regional, rural and remote areas."
CHA has also recommended the ACCAP be expanded to include staff accommodation to help address "critical staff shortages" in those areas.
The submission noted that some mining towns, including Broken Hill, NSW, and Kalgoorlie, WA, are disadvantaged by the MMM model, which does not adequately reflect the remoteness of their locations, limiting access to primary and allied healthcare, residential aged care, and respite care.
"Providers typically experience a higher cost of labour and accommodation due to competition with the mining industry, travel costs which are typically by air, and increased costs and availability of all other goods and services," the report notes.
Other recommendations include:
- Allow up to 15% of Support at Home packages to be used for care management to effectively deliver services to high-acuity older Australians,
- Fund and deliver enough aged care packages to meet demand,
- Subsidise rents for aged care nurses as rising housing costs make it more difficult to attract and retain staff,
- Subsidise the cost to providers of implementing the reforms of the Aged Care Act, such as the required ICT upgrades,
- Re-introduce exemptions of the fortnightly working hour cap for international students studying to receive a qualification in aged care, and
- Ensure there are sufficient safety nets in place to protect supported residents
Read CHA's Pre-Budget Submission here.