Budget whispers: Reforms worth waiting for
NFPs could emerge as the clear winners of tonight’s budget announcement. The countdown begins…
By Yasmin Noone
It’s a tense day today, not only for those in federal politics but for the many working in not-for-profit aged care organisations (NFP) around the country, as the count down to budget crunch-time begins.
The 2011/12 federal budget, due to be announced tonight, is expected to put aside around $54 million over four years for an independent NFP sector regulator.
This initiative is a long-awaited reform, which NFP aged care organisations have advocating for a while now.
Budget whispers suggest that the new regulator will cut red tape in the sector by streamlining reporting requirements and reviewing existing NFP regulations.
The new body is also set to increase reporting transparency, reduce the overlap of state and federal reporting rules and even take over some Australian Tax Office (ATO) duties.
CEO of Catholic Health Australia (CHA), Martin Laverty, said that, should the budget rumours be true, he welcomes the funding.
Mr Laverty commented that as it stands now, national NFP organsations often end up reporting the same information to the government “eight different times”.
“If a not-profit-regulator is able to streamline reporting, that would be a great benefit,” Mr Laverty said.
A new regulator, Mr Laverty said, will potentially save money as well as time.
“And aged care operators need not have a concern about their commercial activities being captured by a new tax regime.
“The government has made it clear that a not-for-profit organisation, engaged in commercial activity as part of their mission, won’t be captured by this [change]. I commend the government on this action.”
While Mr Laverty welcomed the initiative overall, he noted that a consultation period before implementation is crucial.
“Consultation must not be rushed but done with the priority of improving services and not creating more new red tope for not-for-profit organisations.”
Aged and Community Services Australia (ACSA), a member of the National Roundtable of Nonprofit Organisations (NRNO), has previously welcomed the government’s commitment to strengthen the NFP sector.
Acting CEO of ACSA, Pat Sparrow, said that while the introduction of a not-for-profit regulator comes as good news, “any new body must not duplicate existing regulatory authorities’ roles that will not be replaced. It should only receive and co-ordinate reporting requirements for government”.
Ms Sparrow stated that any regulatory body must be able to provide a complex mix of functions (including NFP registration, compliance, advice, support and mediation).
The proposal for the ATO to act as a potential regulator of the sector is not supported by ACSA. This work should be aligned and advanced through existing COAG processes.
Other budget measures
Tonight, the aged care sector will also have its eye on mental health funding, with the Labor government due to hand over a mental health package to the value of $430 million.
Mr Laverty said that although such funding would be celebrated, it should address the mental health needs of all ages – not just those of the young.
“We are looking forward to commitments being made on mental health,” Mr Laverty said.
“Mental health should not just be funded according to what is popular in the community. It must be spread out across the full aged spectrum.
“…Just because you are in retirement age or living in an aged care facility, it doesn’t mean that tonight’s mental health package should over look you.”
The Aged Care Industry Council’s (ACIC) 2011/12 budget submission has called for other government initiatives and further aged care funding.
But, Ms Sparrow said, this year’s wishlist is slightly more conservative than usual because of expected PC-related government reform.
“We have made fairly modest requests based on the fact that broader reform will happen…, that the Minister has said ‘bank on the PM and you bank on reform’ and the fact that this year will be a tight budget,” Ms Sparrow said.
The ACIC submission called for the restoration of the additional 1.75 per cent Capital Adjustment Payment (CAP) for all residential care services. It also said that CAP funding should extend to community care services, which would cost around $150 million.
“Provision of the subsidy should occur pending the undertaking of a cost of care study (as recommended by the Productivity Commission) to ensure the right level of funding to support older people, commencing from the 2012 Federal Budget,” the submission stated.”
ACIC is the peak council of Australia’s aged care providers: ACSA and the Aged Care Association Australia (ACAA).
