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What’s in Labor’s first Budget for aged care?

4 min read

To provide readers with the key elements in Tuesday night’s budget we refer to the MinterEllison summary below written by lead aged care Partner, Penny Eden.

Residential aged care and home care

  • Additional “funding to fix the aged care crisis” will be provided through funding existing initiatives such as 24/7 registered nurses onsite and increased care minutes, which is expected to increase payments by $2.5 billion over four years from 2022–23.
  • Aged care infrastructure for First Nations People will be funded with $23.2 million over four years from 2022–23. This will improve aged care infrastructure and services that provide additional support to older First Nations Peoples, and older Australians from diverse communities and regional areas.
  • An Aged Care Complaints Commissioner will be established within the Aged Care Quality and Safety Commission (ACQSC). $9.9 million will be provided over two years from 2022–23 to establish the Aged Care Complaints Commissioner within the ACQSC from December 2022.
  • Increasing financial transparency through the introduction of new financial reporting requirements for residential aged care providers will be funded with $8.2 million over four years from 2022–23.
  • The Maggie Beer Foundation will be funded to support the sector in providing better food for residential aged care and home care recipients with $5.0 million over three years from 2022–23.
  • A national registration scheme and code of conduct for personal care workers in the aged care sector will be implemented with $3.6 million in 2022–23.
  • The National Partnership on COVID-19 Response also provides funding to boost COVID-19 preparedness in residential aged care facilities and support Australia’s COVID-19 vaccination program. This will include:

    • 100% of costs incurred from 1 July 2020 to support states to deliver infection, prevention and control training and COVID-19 preparedness in residential aged care facilities; and
    • 50% contribution to the price per vaccination dose delivered by the states.

  • Increased funding to improve access to palliative care for older Australians living in residential aged care facilities, supporting new approaches, such as ‘in reach’ services, that will improve palliative and end-of-life care.
  • Funding for trials to examine multidisciplinary outreach care for residents of aged care facilities, contributing $20.6 million over two years.
  • The Australian Government is providing funding to establish a national registration scheme and code of conduct for personal care workers in the aged care sector.
  • While not specifying a specific monetary amount, it is announced that My Aged Care will be “modernised”.
  • The ACQSC will see more than a doubling of its budget in the next year, from $3.2 million to $6.7 million.
  • The Government also announced that they will improve continuity of care by requiring aged care providers to preference direct employment for their staff. However, it is unclear on the budget papers as to how this will be implemented.
  • Governance of aged care providers will be strengthening regulation of aged care providers, including through new civil penalties to better protect whistle blowers and ordering providers to pay compensation to care recipients where loss or damage has occurred due to neglect.
  • The Government recommitted to capping administration and management fees charged by providers in the Home Care Packages Program.
  • Existing measures recommended by the Royal Commission into Aged Care Quality and Safety have also been funded, including:

    • A trial of the Support at Home program will be provided with $23.1 million in 2022–23 to support the implementation of the Support at Home Program from July 2024 through conducting a large-scale trial of an integrated assessment tool, the establishment of a Service List Advisory Body, commissioning the Independent Hospital and Aged Care Pricing Authority to undertake a pricing study, and to consult with the aged care sector;
    • An additional $53.5 million for 12 months from 1 January 2023 to extend the Disability Support for Older Australians Program to 31 December 2023;
    • Australian National Aged Care Classification Transition Fund will be increased $43.8 million over three years from 2022–23 to expand eligibility by including the Basic Daily Fee supplement in the calculation that determines the amount of financial support for facilities;
    • $38.7 million over four years from 2022–23 to establish the Inspector-General of Aged Care and the Office of the Inspector-General of Aged Care as a Statutory Agency;
    • $43.8 million over three years from 2022–23 to expand eligibility for the Australian National Aged Care Classification Transition Fund by including the Basic Daily Fee supplement in the calculation that determines the amount of financial support for facilities;
    • $68.5 million over four years from 2022–23 to extend and expand the Regional Stewardship of the Aged Care outreach model to strengthen governance and to support the implementation of aged care reforms in regional areas; and
    • $312.6 million over four years from 2022–23 for essential aged care information and communication technologies system maintenance and enhancements, including streamlined reporting, and to enable aged care sector reform.


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