Minister for Mental Health and Ageing, Mark Butler, has responded to sector criticism, especially the argument that residential funding has been cut by $500M per year in the past budget. His major points:
1. Instead of cut by $500M he claims residential subsidies will increase by $310M in 2012
2. He says increases in care subsidies are not being passed on to workers. The median ACFI subsidy grew by 8.4% between 2008/9 and 2010/11 but wage growth was just 4.2%, yet wages account for 70% of overheads
3. Over $400M has also been allocated to training
4. The distinction between High and Low care is being implemented as result of sector requests
Detail was not provided to these points.
