Ignored by the budget: Sector fallout as aged care misses out

Tuesday night’s budget delivered two key investments for aged care: $2.6 billion to fund pay rises for aged care nurses and a further $291.6 million to assist with a range of reform measures.

Unfortunately, the bulk of that funding will go to the likes of the Aged Care Quality and Safety Commission. This has left many in the sector feeling left out at a critical time. Hello Leaders has captured the key reactions from across the industry. 

Unresolved transition issues

Aged care has enjoyed some bumper budgets in recent years as the Labor government heavily invested in ongoing reform measures. That’s why a quieter budget feels like the sector has missed out right on the cusp of a new Aged Care Act. 

Catholic Health Australia (CHA) urged the need for caution despite significant investments over the past 18 months. CHA CEO Jason Kara warned that unresolved transition issues could threaten the successful implementation of the new Aged Care Act, citing significant gaps in funding from this budget. 

“Providers continue to face significant uncertainty, and there remains an urgent need for the Department of Health and Aged Care to release critical implementation details such as co-contribution amounts,” Mr Kara said.

“The absence of a clear transition pathway for providers who will not be ready by the stipulated deadline poses real risks for older Australians reliant on aged care services.”

“The planned level of funding for care management is insufficient and increases risks to the transition process and the sector’s ability to support the needs of older Australians,” Mr Kara said.  

Ageing Australia echoed those thoughts, praising the government’s $2.6 billion investment to support future pay rises for aged care nurses. 

However, CEO Tom Symondson pointed out that providers have missed out on direct support to upgrade systems so they can align with government expectations. 

“Provider systems will need to be upgraded to interface with new systems being built by government departments.  The cost to providers is immense, with some already spending millions of dollars. Individual grants of $10,000 clearly aren’t enough,” he added. 

An underwhelming offering

The Retirement Living Council (RLC) has labelled the budget a ‘missed opportunity’ to respond to Australia’s housing supply and aged care crisis. RLC Executive Director Daniel Gannon said the budget has missed the mark despite the government’s understanding that Australia has an ageing population: already there has been a 9.13% increase in the number of Australians aged over 75 compared to this time last year.

“When Australia is confronted by overwhelming demographic changes, we need a Budget blueprint that appropriately addresses the challenges associated with an ageing population,” Mr Gannon said.

“This Budget does not speak to these challenges.

“Australia is ageing, retirement villages and aged care facilities are operating at full capacity, ambulances are ramping at hospitals bursting at the seams, and housing supply is in deficit. This means that business as usual policymaking just isn’t going to cut it anymore.”

Mr Gannon also touched on the need to improve the Age Pension assets test and Commonwealth Rent Assistance (CRA) eligibility to help free up tens of thousands of homes while supporting older Australians into age-friendly housing. 

“This comes at the same time that there is incredible angst across the sector relating to the July 1 commencement date of the new Aged Care Act and proposed liquidity ratios that will lock up hundreds of millions of dollars that could otherwise be invested in new housing supply,” he added. 

“Disappointingly, and unlike last year, no additional funds have been dedicated to Home Care packages when we know there is a backlog of more than 80,000 people waiting for funding.”

Dementia care hits and misses

Budget measures targeting dementia and dementia care included $5.7 million for the National Centre for Monitoring Dementia to provide dementia data and monitor progress with the National Dementia Action Plan. However, far less focus was placed on dementia than in past budgets.

Dementia Australia expressed its disappointment over the lack of funding dedicated to reducing the impact of dementia, which will soon be the leading cause of death for all Australians.

“The National Dementia Action Plan requires funding if we are to see it have an impact. The lack of funding to implement this Plan has a real impact on people living with dementia, their families and carers,” Dementia Australia CEO Professor Tanya Buchanan said. 

“Dementia Australia encourages all parties, independents and candidates to consider how they can support actions to reduce the impact of dementia.”

There will be a flow-on effect for dementia support through targeted aged care reforms, alongside a major $364.5 million investment to redesign the Information, Linkages and Capacity Building program. While this focuses on people with disability, beneficial outcomes are likely for countless members of the community. 

No mention of allied health 

Occupational Therapy Australia (OTA) has criticised the government’s short-sighted approach to savings after it ignored allied health. 

OTA CEO, Samantha Hunter, urged the government to recognise the critical role allied health plays for people of all ages through meaningful and immediate investment into the workforce. 

“OTA is deeply concerned by the glaring omission of allied health in this year’s federal budget. Once again, this budget highlights the alarming neglect of allied health, despite its critical role in Australia’s healthcare system,” Ms Hunter said. 

“The government claims it’s addressing urgent health needs, yet continues to ignore the allied health sector, leaving thousands of Australians struggling to access essential care.

“The workforce crisis among allied health providers, including occupational therapists, has reached breaking point, with occupational therapists facing worsening workforce shortages. Immediate investment is crucial. OTA calls for urgent funding of a national supervision program, extended placement support for occupational therapy students, and streamlined pathways for overseas-trained therapists to bolster this in-demand workforce.”

Improving access to primary allied health services was a key focus for Allied Health Professions Australia (AHPA) yet many of its requests also went unanswered. This includes expanding the Commonwealth Prac Placement program to allied health professions with national shortages and evaluating the role of allied health professionals in Urgent Care Clinics. 

Ms Hunter reinforced that it is Australia’s veterans and NDIS participants that are among those most impacted. 

“The health of Australia’s veterans is also being left behind in this budget. Veterans rely on essential allied health services for their mental and physical well-being, but low provider fees severely limit their access to care,” she said. 

“Despite recommendations from the Defence and Veteran Suicide Royal Commission, the government has failed to increase provider fees and address the barriers veterans face in accessing vital health services.”

Mixed reviews for workforce commitments

The Australian College of Nursing (ACN) and Australian Nursing and Midwifery Federation (ANMF) have shared mixed reviews on the budget’s workforce commitments.

Overall, the ACN believes the significant health investment will improve patient access to healthcare services through more Urgent Care Clinics and better public hospital funding, while also paving the way for better use of nursing skills and leadership. 

ACN CEO, Adjunct Professor Kathryn Zeitz FACN said nurses and midwives are the solution to relieving health workforce pressures, and by allowing them to work to their full scope of skills and ability, all Australians can benefit. 

“There must also be support for genuine multidisciplinary teams – GPs, nurses, nurse practitioners, midwives, allied health professionals – working together under new blended payment systems to improve patient access to care. Nurses working in hospitals and aged care also need more support,” she said. 

“These reforms will provide improved career pathways for nurses and midwives, keep nurses in nursing, and attract other nurses back to the profession they love.”

As for the ANMF, Federal Secretary, Annie Butler applauded the government’s ongoing commitment to aged care workers.

“We welcome the Government’s continued support of the aged care workforce by funding a wage increase for registered nurses and enrolled nurses, in-line with the Fair Work Commission’s final determination in the historic work value case,” she added.

“It will certainly help with our members’ every day, cost of living challenges and retain and recruit more nurses into the sector by offering better pay and working conditions, which in turn, will result in safer, higher quality care for older Australians.”