Budget 2023–⁠24: what does it mean for aged care?

The 2023–24 Budget included plans for an overall spend in aged care of $36 billion in 2023–24. The government said this is in recognition of “the complex and previously undervalued work of the aged care workforce” and this was the reason for the $11.3 billion investment to fund the Fair Work Commission’s interim decision for a 15% pay increase.

Minister for Health and Aged Care, the Hon Mark Butler MP said: “Aged care workers have been undervalued and underpaid for too long — we are supporting a wage increase for them because it’s the right thing to do.”

This is the largest ever pay increase for aged care workers. It is designed to demonstrate the value of the dedicated aged care workforce and to attract and retain staff.

There will be further investment in the aged care workforce with advancements to the National Worker Registration Scheme, engaging with the aged care, health and training sectors ($59.5m).

A new Aged Care Act

$72.3 million will be invested in a new regulatory model and prudential framework, to be reflected in a new Aged Care Act. This Budget investment aims to improve quality and safety, and restore trust and confidence through changes in how providers are regulated. The new model will be complemented by actions to:

• strengthen food and nutrition reporting, direct expert dietary advice to providers and embed improved dining experiences for aged care residents ($12.9m)
• begin Monthly Care Statements with information on care provided and occurrences of significant change or events for residents ($1.3m)
• enhance Star Ratings for better data quality and analysis ($126.7m)
• expand the existing Quality Indicator program to in-home care services ($11.9m).
   

Older Australians increasingly want to receive aged care and live independently in their own homes for longer. This Budget provides 9500 additional Home Care Packages, to be released in 2023–24, and establishes new aged care assessment arrangements from July 2024.

Support at Home program

A new Aged Care Taskforce will be established to review aged care funding arrangements and develop options to make the system fair and equitable for all Australians.

The Taskforce will also inform the final design of the Support at Home program, which will be postponed to commence on 1 July 2025, in response to feedback and to allow time to further refine the design. A July 2025 start date, will also ensure aged care service providers are well prepared for the change, avoiding disruptions to continuity of care for older people. Existing grant arrangements for the Commonwealth Home Support Programme will be extended for a further 12 months to 30 June 2025.

HammondCare welcomed this change.

“Aged care providers are under stress adapting and implementing more changes in the last 12 months than ever before in the sector’s history,” said Mike Baird, HammondCare Chief Executive.

“Changes recently have included Star Ratings, care minute requirements, 24/7 registered nurses and a new AN-ACC funding model.

“Placing a pause on these home care sector changes will give providers some breathing space.”

For older people requiring residential care, the government will develop systems to help choose their provider, giving them greater choice and control in decision-making.

Aged care residents will have better access to high-quality, continuous primary care through reforms to strengthen Medicare, with new incentives for GPs to provide care to residents through MyMedicare ($112m).

Aged Care in rural and remote areas

The government said it would continue to support the viability of aged care providers in rural and remote areas, but some providers suggested these provisions didn’t go far enough.

“We commend the government’s Budget,” said Jason Eldering, CEO Southern Cross Care QLD.

“However, the situation facing rural and remote providers is very different to our friends in metropolitan areas, and the Budget could have gone further to specifically support those unique challenges.”

The Budget also addresses a “shocking inequity” that saw providers of culturally safe care for First Nations elders funded less, per resident, than other mainstream providers, through a funding uplift to the National Aboriginal and Torres Strait Islander Flexible Aged Care Program ($52.1m).

The Budget also provides support to build the capacity of Aboriginal Controlled Organisations so that First Nations elders will continue to receive the care they need on Country ($7.6m).

Aged Care sustainability

Minister for Aged Care, The Hon Anika Wells MP said, “I invite Australians to be ambitious with the Albanese government and commit to the future of aged care as we build a system that is equitable, sustainable and trusted to deliver quality services for older people.”

The Aged & Community Care Providers Association (ACCPA) CEO, Tom Symondson, said,

“We understand that total indexation will increase by 5.7%, more than triple last year’s indexation figure, which is something we advocated for, given the pressures inflation is having on the sector. However, it still doesn’t match CPI, which will have an impact on aged care provider sustainability.

“We welcome the government’s commitment to fund the establishment of the Aged Care Sustainability Taskforce, to provide advice on a sustainable aged care system.

“ACCPA has been calling for some time for a national conversation about the sustainability of the sector, ensuring we have the funding we need to provide quality aged care services. This includes the potential for consumer contributions from those who can afford to pay more.”

Overall, several aged care providers have welcomed the investment in aged services, but await further detail and ongoing discussion.

Palliative Care Australia (PCA) congratulated the government for the systemic reform and said the Budget provided a strong foundation for ongoing reform. The PCA looks forward to discussions about how to integrate palliative care into a sustainable aged care agenda.

Butler said, “This Budget continues our strong agenda on aged care, increasing our workforce, and improving care, transparency and accountability in the sector.”

Image credit: iStock.com/Chee Siong Teh