Image: From left to right: Adam Connolly, CEO of Apollo Communications; Lloyd Williams, National Secretary of the Health Services Union; Tom Symondson, ACCPA CEO; and Patricia Sparrow, CEO of COTA Australia
Last week’s Financial Sustainability Summit in Canberra, where sector leaders met to discuss a funding model to see the sector through the next 30 years, agreed in principle to Plan B – that consumer co-contributions need to be part of the funding mix to make the sector financially sustainable.
The summit was hosted by Aged & Community Care Providers Association (ACCPA), which will now prepare a White Paper for the Federal Government incorporating the views of Summit attendees.
ACCPA is asking attendees to make a submission sharing their views on the best ways to “modernise” aged care funding, with a particular focus on “co-contributions by older Australians”. The views expressed in the submission will be used to inform the White Paper.
AUSTRALIA SPENDS HALF OECD AVG ON AGED CARE
ACCPA CEO, Tom Symondson, said, “Australia currently spends around $34 billion per annum on aged care, or 1.2% of GDP, which is only half of the OECD average.
“How should Australia bridge the gap?
“The majority of aged care funding in Australia is currently provided by taxpayers, rather than individuals, which is placing an increasing burden on the Federal Government Budget.”
INCLUDE SUPER
Saviour Buhagiar, Acting Executive Director / Director Seniors Services at Uniting NSW.ACT, told The Weekly SOURCE that superannuation should also be considered as an income stream.
Saviour said reforms must be carefully assessed. “Each new reform should be properly evaluated and checked for any unintended consequences, so we ensure that changes are making things better, not creating additional pressure,” he warned.
CUT RED TAPE
Attendee Nicole Hornsby, Executive Director of Baptist Care Australia, said the Government should consider “reducing red tape” in aged care to boost “productivity and efficiency”.
Sean Bilton, CEO of Estia Health, who also attended the Summit, told The SOURCE, “From here, the Taskforce must be convened with alacrity,” he said, adding that it can be guided by previous reports on the aged care sector, such as the Tune Review and the ongoing work of Professor Mike Woods.
“Consumer contributions to the costs of aged care are “stagnant or declining” at well below 10% of total costs,” he said.
A HOPEFUL TONE
Attendee Executive Director of the DCM Institute, James Wiltshire, said the mood in the room was “hopeful” and the principles of Plan B were front and centre during discussions. “Changing means testing [for aged care] is necessary because the current system is not fair and equitable,” James said.
NEW ENERGY
Attendee Michelle Church, Chief Executive of St Basil’s Homes (SA), told The SOURCE, Tom’s "vision and energy are refreshing and contagious."
A new vision and energy that can hopefully help solve the thorny problem of aged care funding.
The deadline for submissions from attendees is 5pm Friday 16 June 2023.
Sean Bilton, CEO of Estia Health, who also attended the Summit, told The SOURCE, “From here, the Taskforce must be convened with alacrity,” he said, adding that it can be guided by previous reports on the aged care sector, such as the Tune Review and the ongoing work of Professor Mike Woods.
Attendee Executive Director of the DCM Institute, James Wiltshire, said the mood in the room was “hopeful” and the principles of Plan B were front and centre during discussions. “Changing means testing [for aged care] is necessary because the current system is not fair and equitable,” James said.
