Who will fund wage boost in aged care Minister?

"Where does the Minister suggest aged care providers find the money for a wage boost?" CCOA asked.

"Minister Elliot's comment beggars belief when she controls the funding and regulatory formula.

"We are delighted the Minister agrees more should be spent on aged care. We would now like her to commit to reforms that will make it possible.

"The aged sector is facing a critical short fall in funding, the majority of which is regulated and allocated by the Federal Government as part of an out of date system.

"We have called for an immediate injection of funds to meet the real costs associated with providing quality care, services and accommodation for older Australians.

"An average of 70 per cent of providers' incomes is spent on salaries sanctioned by awards and enterprise agreements, leaving very little to cover other critical costs including accommodation.

"There was no relief provided in the Federal Budget and the Productivity Commission inquiry, which will address wages, staffing and funding, is still 12 months away from completion.

"An increase in subsidies is necessary now to ensure there are sustainable services to meet growing numbers of older people, along with an undertaking from

all parties to real reform in aged care during the next term of government."

CCOA comprises 11 national organisations providing community and residential aged care and housing.