$1 billion-plus in peak’s budget wish list

Provider peak body Ageing Australia has called for the next federal budget to include an additional $1.2 billion for the sector in 2025-26 to address aged care funding and workforce shortfalls and implement reforms across nine recommendations.

Almost $400 million should become an annual expense to reintroduce the Aged Care Payroll Tax Supplement for private residential aged care providers, who are not exempt from state government payroll taxes, Ageing Australia’s pre-budget submission recommends.

Elsewhere for residential aged care providers, the submission calls for immediate action on Aged Care Taskforce recommendations including a review of the accommodation supplement, the costing and funding of high-quality care including program administration and business costs, and adequate funding for residential providers to meet the new service list requirements.

Other big dollar recommendations include $600 million to establish an ICT grant for aged care providers to meet the obligations of the new Act. This includes $400 million for capital expenses like system upgrades and $200 million for operational expenses such as training.

Ageing Australia is also calling for $188 million for a transition supplement to help providers cover the costs of implementing the new Act.

The submission also requests $500,000 in 2025-26 to establish a national aged care workforce strategy taskforce to collect information, sector-specific projections and identify strategies to address gaps in skills and staffing shortages and changing demands in care.

Elsewhere on workforce related recommendations, Ageing Australia is calling for a fund to attract aged care workers – especially in rural and remote areas – and additional dollars for the existing capital assistance program to support the building of onsite accommodation.

It also recommends $9 million over three years to improve access to migrant workers via a sector-led migration advisory service for aged care providers to access and retain migrant workers, and an international workforce council to support cross-sectoral collaboration innovative solutions.

“Relieving the ongoing workforce crisis in Australian aged care, transition to the new Support at Home Program and time to implement reforms properly are our absolute top priorities,” said chief executive officer Tom Symondson.

He said the sector needed funding and support for transition and enough time to implement the changes.

Without it, there was a risk of sector instability, complications and confusion for both providers and older Australians, Mr Symondson said.

“While most providers are likely to struggle if reforms are rushed, smaller providers – which make up the bulk of residential and home and community aged care – are the most at risk.”

Home care and retirement living

For the first year of the Support at Home program, Ageing Australia recommends the government fund care management at 20 per cent – instead of the proposed 10 per cent – to support transition and market stability.

The pre-budget submission also calls for the indexation for Commonwealth Home Support Program to be revised because “the 3.5 per cent from 1 July was insufficient to address provider wage costs.”

The peak body is calling for $2.5 million for a three-month pilot of hospital in the home at eight retirement villages.

“Investing in a pilot will enable the federal and state governments, along with the sector, to explore the possibility of extending HITH into retirement living, a key source of seniors housing,” said the peak in its submission.

“A pilot will help to develop a better understanding of how this model could benefit older Australians, as well as any potential risks and/or implementation challenges which would need to be addressed before adopting the model more widely.”

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