CHA pre-budget submission pitches strengthened safety nets, more support

Catholic Health Australia has pitched several pre-budget measures to prop up the aged care sector and its workforce, including rent subsidies, lifting the Support at Home care management cap to 15%, and implementing additional safety nets for older people experiencing financial hardship. 

Key points

• Catholic Health Australia (CHA) is the peak body for 350 aged care facilities and roughly 20% of the home care sector
• Its pre-budget submission outlines five key areas requiring additional Federal Government investment: Workforce solutions, regional, rural and remote aged care, Aged Care Act and Support at Home transition funding, safety nets for older people, and collaboration across health and aged care systems
• CHA Chief Executive Officer Jason Kara said the current supplement system for providers is not enough to sustain quality care for low-means older Australians

Supporting consumers

The pre-budget submission from CHA highlighted aged care’s contrasting challenges. There is no single focus point at this stage, with providers worried about their financial stability, worker financial security, and the financial implications of the system on low-means older people.

Mr Kara urged the government to provide additional support for those who can’t afford aged care and will be impacted by the incoming co-contribution system. 

“While we welcome the reforms of the Aged Care Act, we must keep working to ensure that aged care remains accessible for everyone, not just those with the deepest pockets,” he said.

“We are concerned the current safety nets in place are inadequate and will potentially see thousands of disadvantaged people miss out on the care they need.”

For Support at Home, self-funded retirees and part pension recipients will contribute between 5% and 50% for services that promote independence and between 17.5% and 80% for everyday living support. 

In residential aged care there will be additional costs through the means-tested hotelling supplement and non-clinical care fee. However, a lifetime cap means no one will pay more than $130,000 for non-clinical care costs. Most existing clients or residents are also protected by a grandfathering ‘no worse off’ principle.

Despite the fact that these changes do not intend to further disadvantage low-means people, CHA is concerned that the proposed hardship provisions for Support at Home require further attention. 

It said that comprehensive safety nets should be designed and implemented to ensure everyone can access quality aged care. 

“Specific provisions need to be in place to support the viability and sustainability of aged care providers to ensure that high quality aged care is available in sufficient quantities across all locations to meet future demand,” the pre-budget submission read. 

“CHA is supportive of fair contributions to aged care costs for those who can afford it, while ensuring a safety net for others. 

“Means-tested contributions are necessary for high-quality care and should be considerate of groups of older Australians that might miss out if hardship provisions are inadequate or hard to access, especially with current cost of living pressures.”

CHA has recommended that the government accelerate the accommodation supplement review and implement additional safeguards to strengthen safety nets. 

Similarly, it said both federal and state/territory governments must develop an implementation strategy to resolve delayed discharge of long-stay older people from hospital. 

With members in both aged care and healthcare settings, CHA is uniquely positioned at the intersection of health and aged care. It acknowledged the interface between both services is complex and fragmented and collaboration must occur to ensure timely, beneficial care. 

“Each system has its own operating context, governance structures, entry and discharge processes, and service providers. It is important that stakeholders across the health and aged care systems each play a distinct role in ensuring that both systems meet the care needs of older Australians,” CHA said. 

“There needs to be equal accountability between all stakeholders to progress an integrated care and service delivery approach for older people.”

Provider stability

CHA’s other recommendations tap into common points of contention for aged care providers,  particularly, the need for immediate workforce solutions and greater reform support.

Among its workforce recommendations was a call to Subsidise rent for nurses by introducing additional salary packaging allowances when renting within a certain proximity to work.

Several measures targeted at enhancing health and aged care workforce planning, leadership and training were pitched, alongside the reintroduction of fortnightly working hour cap exemptions for international students studying to receive a qualification in aged care. 

Adequate investments in Support at Home and the Aged Care Act transition are also a must. 

“CHA is committed to working with Government to ensure the Support at Home (SaH) program expands the quality and availability of aged care services delivered in the home. This is critical to meeting the care needs of older Australians in the coming decades,” it stated. 

“While the intent of the reform is welcome, there are some critical barriers to the Government’s objective of supporting older people to remain at home.”

This would include increasing the proposed Support at Home management cap to 15% (still lower than the current 20% cap), funding more packages for home care recipients and subsidising the cost of transition. 

An increased accommodation supplement would also provide greater benefits for financially disadvantaged residents. 

The maximum supplement sits at $69.49 per day, yet the actual cost of providing aged care accommodation is 65% higher, averaging $114.79 per day.

“The current supplement simply does not cover costs. Without an increase, aged care providers will be unable to sustain quality residential care for low-means older Australians,” Mr Kara said. 

Catholic Health Australia’s full pre-budget submission can be viewed here.