In November 2021, the editorial team here at DCM/The SOURCE sat down and discussed what is the future for aged care. To be blunt, there was no optimism in the sector as operators racked up month after month of financial losses.
Looking forward, with the bulging Baby Boomer cohort heading to age 80, it was obvious the Government had an even greater financial black hole facing it if it continued propping up aged care.
Young tax paying families would be paying forever for asset rich/cash poor seniors rather than supporting health and education for themselves and their children.
Plan A, the strategy of doing nothing, clearly did not pass the pub test. So, we coined the phrase Plan B, the push for co-contribution to the cost of aged care by those that can afford it.
Then we approached Grant Corderoy and StewartBrown to join us and develop the financial argument to take to the sector and Government, which we jointly launched at the March 2022 LEADERS SUMMIT.
Check out Grant’s video below.
In addition, Grant joined us in a roadshow of small dinners in each capital city to engage the leaders in the sector to get on board.
The political experts told us we were dreaming, that it requires a minimum of five years to introduce such a dramatic policy change that could be so easily framed as a ‘granny tax’. But if you don’t have a crack, you will never know. So StewartBrown and our team had a crack.
Grant and his team cranked out the persuasive numbers and Grant became an identity in the media.
Our colleague Ian Horswill dedicated three days a week to also generating stories in the mainstream and social media.
Kudos to the stakeholders involved
And sentiment started to change, together with a full bucket of courage from the Aged Care Minister, Anika Wells, who not only set up the Aged Care Taskforce but also took the extremely dangerous career move of deciding to chair the Taskforce. She would sink or swim on the results. Health Minister Mark Butler was active behind the scenes.
Credit also to the Shadow Minister for Aged Care Anne Ruston who constructively worked with the Government to come to agreement.
At the same time, Tom Symondson joined the Aged and Community Care Providers Association (ACCPA) in September 2022 and by July 2023 when the Taskforce first met, was committed to a positive outcome.
Short and long journey
Last night, the Aged Care Bill 2024 was passed by the Senate with only minor amendments from the Coalition. While the Bill still needs to return to the House of Representatives next week to be passed into legislation, it is in effect a done deal.
Its passage ensures that Australia’s aged care sector will have a new Aged Care Act – replacing the 27-year-old current legislation – and enshrines consumer contributions for aged care.
It may not immediately deliver the $3.2 billion per year additional funding we put up but the Act and the new co-contribution funding does give regulatory and financial certainty.
The sector can now have optimism looking forward and confidence that better quality care can be delivered to older Australians.
It was worth ‘having a crack’.
