Budget promising to fix the crisis in aged care

Aged care peak bodies and unions have welcomed the $3.9 billion investment towards aged care reform put forward in last night’s Federal Budget, but have noted it will take time to rectify the sector after years of underfunding.  

Promising to “fix the crisis in aged care” after the sector “missed out” in the former Liberal Government’s Budget in May, the first Budget from the Albanese Government has pledged over the $2.5 billion mentioned in the party’s Election promise.

This funding will assist providers with delivering more care minutes and 24/7 nurse coverage in residential aged care.

Aged care residents will soon receive an average of 200 minutes of care per day and have access to an on-site registered nurse, 24 hours a day, 7 days a week by 2023.

To address the sector’s cries to fix the workforce shortages, $185.3 million of the Budget has been directly allocated to help ease the workforce crisis in both the health and aged care sectors.

Almost $30 million has also been allocated to upskilling and training nurses, pharmacists and allied health professionals, and First Nations health professionals in the form of workforce package.

These reform packages for the aged care sector include:

• $2.5 billion over four years to implement 24/7 nurses in facilities and ensure residents recieve 215 care minutes daily
• $26.1 million over four years to fund individual facilities
• $43.8 million over three years for the Australian National Aged Care Classification (AN-ACC) Transition Fund
• $3.6 million over one year to implement the personal care workers registration scheme
• $23.1 million over one year for research and consultation to reform home care
• $9.9 million over two years for the Aged Care Complaints Commissioner
• $38.7 million over four years for Inspector General of Aged Care
• $5 million over three years to the Maggie Beer Foundation to improve food and nutrition by educating and training residential aged care staff to meet new nutritional standards
• $68.5 million for four years to strengthen Regional Stewardship of Aged Care
• $312.6 million over four year for an ICT overhaul to assist administrative workloads

Delivering on Election promises

The new 2022-23 Budget responds directly to 23 of the Royal Commission into Aged Care Quality and Safety recommendations to improve the state of the sector and provide the care older Australians deserve.

Minister for Aged Care Anika Wells said the Government was “taking action” to improve the aged care sector with this Budget.

“The Government embraces both the spirit and intent of the recommendations of the Royal Commission into Aged Care Quality and Safety, and through this Budget we are taking action,” she said. 

“The 2022-23 Budget steers a course for the aged care sector towards a system that is focused on quality care.”  

These sentiments were shared by Health and Aged Care Minister Mark Butler, who said the aged care reforms put older people at the forefront. 

“Older Australians deserve respect and dignity in aged care and this Budget takes the first steps to deliver the reforms that they so badly need,” he said. 

Years of underfunding still taking a toll

Despite these new measures, workforce shortages in the sector are still a problem and Aged & Community Care Providers Association (ACCPA) Chief Executive Officer (CEO), Tom Symondson, said full reform is still a way off due to years of chronic underfunding. 

“There’s no denying the incredible pressure facing the aged care sector, including workforce

shortages, the ongoing spectre of COVID-19, and the legacy of decades of underfunding,” he said. 

“And the pressure is not just financial – we have welcomed funding for additional care

minutes but there is no escaping the fact that it requires us to recruit thousands of extra staff

in the context of record low unemployment and a global shortage of nurses.”

Mr Symondson added that to give older Australians the care they deserve, the Federal Government and providers needed to work together to fix current funding shortages and workforce shortfalls.

“We are already having positive conversations with Government about these issues and look

forward to working closely together in the lead-up to the 2023-24 Budget in May,” he said. 

The Australian Nursing and Midwifery Federation (ANMF) has also welcomed the funding allocated to aged care and believe it is the first step in rectifying the years of damage done to the sector, praising the support services that will be provided to frontline workers.

“We commend the Government for recognising the need to prioritise funding for health and aged care in the Budget, particularly during these difficult economic times,” ANMF Federal Secretary, Annie Butler, said.

“The Government’s plan for boosting wages in female-dominated industries, improving gender equity and addressing cost-of-living pressures, will provide a platform to finally commence reforming aged care by recruiting and retaining nurses and workers, so desperately needed across the sector. 

“Nurses, midwives and carers will also benefit from increased access to childcare subsidies and the extension of paid parental leave to 26 weeks and more affordable housing for these essential workers.”

But National Seniors Australia Chief Advocate, Ian Henschke, said the organisation hoped to see additional measures to boost workforce participation, especially in older people – which would have a positive effect on the aged care sector.

“The workforce crisis in the care sector could be eased by allowing pensioners to work, and work more, without being financially penalised,” he said.

Mr Henschke would like to see a full income exemption for pensioners looking to re-enter the workforce to fill shortages in the form of a two-year trial, and would like the Government to consider this in the May 2023 Budget.