Aged Care Industry Council calls for Budget action

The Aged Care Industry Council (ACIC) has urged the Government to address the sector’s immediate funding concerns in this year’s federal Budget.

ACIC is the peak council of Australia’s aged care providers represented by Aged and Community Services Australia (ACSA) and Aged Care Association Australia (ACAA).

ACAA CEO Rod Young and ACSA Acting CEO Pat Sparrow said ACIC’s Budget submission outlined three priority areas:

Restoration of the 1.75%additional care subsidy for all residential services, and the extension of the 1.75% to community care services;

A $10 daily increase in the minimum accommodation charge across the aged care program;

An increase in the proportion of Extra Service places in all regions from 15 per cent to 30 per cent.

“The Productivity Commission report – Caring for Older Australians – has mapped out far-reaching and fundamental reforms for the sector,” they said.

“However, change of this magnitude will take time. In the interim the sector must be supported to ensure a healthy and solid foundation to support a successful transition to a new system better able to offer more choice and improved access.

“All economic indicators for the past 12 months have put aged care funding in to sharp focus, with costs outstripping income across the sector.”

Mr Young and Ms Sparrow said a cost of care study for residential and community care services should also be undertaken. A benchmarking study has been recommended by the Productivity Commission.

“Our submission corresponds with the thrust of the Commission’s report including the recommendations for an overhaul of accommodation payments to reflect costs, particularly Government subsidies made on behalf of residents unable to afford the payments.

“ACIC’s submission acknowledges the current competing and compelling pressures on government spending but stresses that aged care services are at a critical juncture as Australia prepares for unprecedented growth in the numbers of older Australians.”

ACIC submission available at www.agedcare.org.au and www.agedcareassocation.com.au

Media contact: Chris Hornsey 0419 513 432