ACSA: Treat this as a reminder

The recent release of CPI and inflation figures by the federal Treasury has triggered the sector’s call to the government to up aged care funding.

Not-for-profit providers have issued a timely reminder to the federal government that, despite the recently announced inflation slow down, the cost of providing care still seriously outstrips subsidy income received.

Figures released by the Treasury yesterday stated that the Consumer Price Index (CPI) for the September quarter came in at 2.8 per cent for the whole year, marking a fall from 3.1 per cent recorded in the June quarter. 

The September quarter also clocked the lowest underlying inflation rate in almost five years, coming in at a moderate 2.4 per cent, compared with 2.7 per cent in the June quarter (in whole of year terms).

Despite the good news for some, Aged and Community Services Australia (ACSA) believes that the 2010/11 aged care subsidy increase of 1.7 per cent is still no match for 2.8 per cent CPI.

ACSA CEO, Greg Mundy, has therefore called upon the federal government, again, to address the shortfall.

“It’s a reminder,” Mr Mundy said. “The quarter has gone past with a cost increase a whole per cent higher than the aged care subsidy.

“We have to remind the government that these [increases] are not without their consequences.”

In a statement issued by the federal government, Treasurer Wayne Swan recognised that regardless of the easing inflation rate, households will continue to face cost of living pressures.

The figures, Mr Swan said, reflect “solid growth in rents and price increases in utilities and property charges. Household contents and services prices also increased 0.8 per cent in the quarter”.

According to Mr Mundy, aged care facilities and individual households bear no difference when it comes to cost of living pressures.

“Aged care organisations are struggling to keep pace with cost increases in the same way households battle to make ends meet,” Mr Mundy said.

“The combined increase for electricity, water and sewerage alone is 18.8 per cent.

“Our income is fixed. What this means is that people will have to trim at the margins and make cut backs, all of which compromises the quality of life of older people.

“We can’t and we won’t remain silent.”

Mr Mundy said it was unreasonable to expect aged care service providers to weather continuing price hikes indefinitely.

“The final recommendations from the Productivity Commission Inquiry into aged care, which are likely to address costs and funding, are still six months away. Any action on the recommendations is even more distant.

“Inadequate funding directly impacts on the hours of care older people receive and the ability of providers to pay competitive wages to hard working, and often over worked staff.

“Our members exist to provide the care and support older people depend on and deserve.

“They can’t keep doing what they do best without funding to match their costs. We urge the government to provide urgent relief.”
 

Tags: acsa, aged-care, aged-care-subsidy, inflation, the-treasury, wayne-swan,

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