Centre Alliance MP Rebekha Sharkie (pictured above) is one step closer to ensuring all aged care providers disclose their financial information after a Parliamentary inquiry was appointed to look into the private members’ Aged Care Legislation Amendment (Financial Transparency) Bill 2020 she introduced two weeks ago.
As we reported here, the Bill would require providers to submit annual reports on their income, costs of food and medication, staff and staff training, accommodation, administration and monies paid to parent bodies in annual financial transparency reports to the Aged Care Quality and Safety Commissioner which would then be reported to the public.
The Bill has now been referred to the Standing Committee on Health, Aged Care and Sport but a date for public submissions has yet to be set.
The South Australian Member for Mayo introduced says the Bill will provide greater transparency about the financing of the aged care sector before the findings of the Royal Commission.
“This legislation will enable families of loved ones, stakeholders and the public to have a clear view, for the first time, on the proportion of income that providers actually spend on costs of care and how much is just being pocketed or wasted,” she said in a statement.
Ms Sharkie particularly pointed to disparities in the current system where some For Profits and Not For Profits are making millions of dollars in revenue while many rural and regional providers are operating at a cash loss.
“We’ve heard allegations of directors of aged care companies who have had the ability to use their funds to buy luxury cars,” she added.
“There’s money in offshore bank accounts. We hear allegations of where rent is more than double the commercial rate, with money being funnelled back into church coffers.”
“Clearly, something has gone horribly wrong in the financial management of the aged care sector but without shedding a light on each aged care facility, we won’t know the extent of the damage.”
The Bill is currently being considered by a Senate inquiry which is scheduled to report later this month.
