The aged care accounting firm has released its analysis of the Government’s funding for a 15% wage increase for aged care workers in the Budget – concluding that the extra funding will fail to deliver the financial sustainability that the sector requires.
As we reported yesterday, the Albanese Government has announced it is investing $11.3 billion over four years to fund the Fair Work Commission’s decision in the 9 May Budget.
Read the story on the 15% wage rise
StewartBrown says its initial modelling shows the funding package should cover the FWC ruling, while the new AN-ACC price of $243.10 – an increase of $36.30 or 17.6% on the original $216.80 price – should also cover the initial shortfall in the price caused by increased indexation and staffing costs.
The new Hotelling Supplement of $10.80 per resident per day will also replace the current Basic Daily Fee Supplement – an increase of 80 cents per resident per day – and help to fund the FWC wage increase for head chefs/cooks and potentially other staff for future decisions.
However, the firm states that the introduction of the care minutes in October will erode any gains from the funding increases.
“This significant funding injection will not provide substantial improved financial performance once the ANACC transition period concludes on 1 October 2023. Essentially, the additional funding will be absorbed through the increased (and necessary) staff costs to meet the FWC ruling.”
StewartBrown argues there is only one solution: the funding model must allow for additional consumer contributions to cover daily services such as accommodation – and it has to happen now.
Will next week’s Federal Budget acknowledge this need?
