The CEO of the Not For Profit aged care provider has warned the sector is on the brink of collapse as a new Aged Care Act comes into being on 1 July.
Russell said Government policy has made it impossible to achieve the 10% return required to justify new investment.
The CEO of West Australian operator Juniper wrote in Business News that the Government should:
- Increase the accommodation supplement for concessional residents (those who do not have the means to pay themselves); and
- Introduce six-monthly indexation to the accommodation supplement to match real costs.
"This is a practical, necessary step to support sustainable investment and ensure aged care remains accessible for generations to come regardless of a person’s means. It’s time to take meaningful action – before this challenge really becomes a crisis," said Russell.
Residential aged care occupancy has climbed to 94%, yet the sector is not expanding.
"The cost of building a single aged care bed now exceeds $500,000 – significantly more in regional communities – leaving investment at a standstill," Russell said.
"At the same time, providers are contending with acute workforce shortages, rising inflation, and increasingly complex regulatory requirements. These pressures are making it harder to deliver the quality care older Australians deserve."
