CAP lobbying intensifies as budget looms nearer

With the federal budget less than a month away, industry lobbying around the conditional adjustment payment (CAP) is intensifying.

Under the auspices of the Aged Care Industry Council, Aged and Community Services Australia (ACSA) and Aged Care Association Australia (ACAA) have issued a joint statement calling on the government to “balance the books” on the sector’s funding.

According to the council’s own research, providers would experience a collective shortfall of $910 million over four years, putting up to 16,000 jobs in jeopardy.

“In the lead up to the federal budget we urge the government to commit to continuing the [CAP] which forms part of the indexation component of the funding formula,” said ACSA’s acting CEO, Pat Sparrow.

“The books have to balance to ensure aged care providers are not continually forced to live beyond their means and face a funding fiasco.”

Fellow ACIC spokesperson and ACAA CEO, Rod Young warned that if the aged care industry was inadequately funded, the real losers would be older consumers themselves.

“The current funding formula is a recipe for disaster that is threatening the viability of aged care facilities, which in turn will leave older people and their families unsupported and dedicated staff without jobs,” he said.

However a spokesperson for the Ageing Minister, Justine Elliot has told Australian Ageing Agenda that providers will have to wait to find out if the CAP will be continued.

“As with the previous Prime Minister and Treasurer, we will not speculate on the budget,” the spokesperson said.

“The contents of the budget will be revealed on 12 May.

“Whatever the question, whatever the speculation, our answer would be the same and will stay the same: we will not speculate on what is in the budget.”