There are a few sweeteners related to senior citizens announced in this budget.
Aged care regulatory reform
The government has committed to allocate more than $300 million in additional funding over five years, starting from 2022-23. This funding will be used to implement the recommendations put forth by the Royal Commission into Aged Care Quality and Safety, as well as other initiatives to strengthen the regulation of the aged care sector and enhance the health and safety of older Australians who receive aged care.
The funded initiatives include:
- Enhancing the Star Rating system to improve the accountability and transparency of approved aged care providers.
- Supporting the development and implementation of a new, robust Aged Care Regulatory Framework that aligns with the upcoming Age Care Act, scheduled to commence from July 1, 2024.
- Establishing a national worker screening and registration scheme, effective July 1, 2024.
- Ensuring adequate resources for the Aged Care Quality and Safety Commission to conduct its audit and compliance program in the fiscal year 2023-24.
- Enhancing food and nutrition standards in aged care through developing, monitoring, and enforcing appropriate food and nutritional guidelines.
The government emphasizes that these measures build upon the previous initiative titled “Fixing the Aged Care Crisis”, announced in the October 2022-23 Budget. This initiative included the following components:
- Ensuring that every aged care facility has a registered nurse available on-site, 24 hours a day, seven days a week, to cater to the needs of aged care residents.
- Enabling every aged care resident to receive an average of 215 minutes of care per day.
- Improving the quality of food provided to aged care residents.
- Providing tailored support for older individuals with disabilities.
Improving aged care support
The government has committed to providing additional funding over five years, starting from 2022-23, to enhance the delivery of aged care services further and address the recommendations outlined in the Final Report of the Royal Commission into Aged Care Quality and Safety. The funding includes:
- Extension of the Disability Support for Older Australians Program, which will continue to provide support and assistance to older Australians with disabilities.
- Introduction of a new incentive payment called the General Practice in Aged Care incentive, designed to encourage general practitioners to be more involved in providing care and ensuring continuity of medical services in residential aged care homes. This initiative also aims to reduce avoidable hospitalizations among elderly individuals.
- Implement a new place assignment system that empowers older Australians to choose their preferred residential aged care provider. This system allows them greater control and decision-making authority regarding their care options.
This measure builds upon the previously announced initiative titled “Implementing Aged Care Reform” from the October 2022-23 Budget, and it underscores the government’s commitment to improving aged care services and implementing necessary reforms in the sector.
Improving the investment in Aged Care
The government has decided to temporarily reduce the residential aged care provision ratio from 78.0 places to 60.1 places per 1,000 individuals aged over 70 years. This adjustment is a response to the growing inclination of older Australians to age in their own homes rather than transition to residential care facilities. The reduced ratio is expected to generate savings of $2.2 billion over three years, starting from 2024-25.
Pay increases for aged care workers.
Starting from July 1, 2023, the government has decided to raise the wages of aged care workers by 15%. This measure directly responds to the outcome of the Aged Care Work Value Case, as determined by the Fair Work Commission. The wage increase will directly impact approximately 250,000 individuals in various roles within the aged care sector.
The benefit of this wage increase extends to a range of positions, including registered nurses, enrolled nurses, assistants in nursing, personal care workers, head chefs and cooks, recreational activities officers (lifestyle workers), as well as home care workers. By implementing this measure, the government aims to recognize and appropriately compensate for the valuable work aged care professionals perform, thereby supporting and enhancing the overall quality of care provided in the aged care sector.
Younger people in residential aged care
The government has allocated additional funding over three years, starting from 2023-24, to implement a series of initiatives to reduce further the number of individuals under 65 residing in residential aged-care facilities. These initiatives include:
- Providing targeted education and training packages for a range of professionals and stakeholders involved in the care and support of younger individuals in residential aged care. This includes General Practitioners, clinical staff, social workers, carers, advocates, families, and other relevant organizations. The goal is to enhance their understanding and decision-making processes regarding younger people in residential aged care.
- Establishing a centralized function within the Department of Health and Aged Care to facilitate nationally consistent decision-making processes when assessing the eligibility of younger individuals seeking entry into residential aged care. This centralized function will ensure a streamlined and standardized approach across the country.
- Evaluating previous actions governments took to reduce the number of younger individuals in residential aged care. The findings from this evaluation will be utilized to inform future initiatives and policies in this area.
Through these funding initiatives, the government aims to address the needs and circumstances of younger individuals requiring care, ensuring that suitable alternatives to residential aged care are available and that their care is delivered in the most appropriate setting.
