Two-and-a-half months after being announced by the Government as part of its $442.6 million coronavirus stimulus package for the aged care sector, the Department of Health says the retention payments to ensure staff continue to work throughout the pandemic will be paid – in July.
Aged Care Minister, Senator Richard Colbeck, had announced on 20 March, that the sector would receive $234.9 million for a COVID-19 ‘retention bonus’ to “ensure the continuity of the workforce” in both residential and home care.
This amounted to a payment of up to $800 after tax per quarter – paid for two quarters – for direct care workers, and two payments of up to $600 after tax per quarter – for two quarters – for those who provide care in the home.
Minister Colbeck said that the payments will be delivered to providers to pay their workers, with part-time workers to be paid a pro-rata rate.
But there has been no more information since then – and providers are becoming frustrated, telling us that the lack of detail around the payments has been a source of concern and confusion.
As we covered here, Estia delivered a subtle criticism of the lack of information on the payments in its recent trading update, telling the market it was still waiting on the Government to supply details.
We asked the Department of Health for an update on when exactly the payments would be delivered and how they would be administered.
A spokesperson told us that the application process will open in June with the first payment to be made in July.
“The retention bonus will be paid by employers (aged care providers and agencies who provide aged care staff) to their eligible staff,” they said.
“Employers will apply and be funded via a grant.”
The Department says they will advise the pro-rata payment rates – so operators and their accountants will not have to calculate the payments themselves.
“Further information is due to be released in early June,” they added.
Watch this space then.
