The Not For Profit faith-based operator, the largest provider of support to older people of limited means in NSW and the ACT, is calling on the Australian Government to bring forward its planned review of aged care accommodation funding for clients who cannot cover the cost of aged care services.
Providers receive a fixed daily accommodation supplement from the government for clients of lower means in lieu of the income generated by the refundable accommodation deposits or daily accommodation payments wealthier residents pay.
“If the government doesn’t increase the supported accommodation supplement, they risk people without means increasingly being deprioritised in favour of residents who can afford to pay more,” Emma Maiden, Uniting NSW.ACT Director Advocacy & External Relations, told Shaping the Future of Aged Care conference in Sydney.
This 'cherry picking' could worsen under the new system, when, from 1 November, wealthier people will contribute more towards their accommodation.
“The danger in the new arrangement lies with older people without means, who may be overlooked by aged care providers under financial pressure because they cannot make accommodation deposits,” she said.
The Government promised to review the accommodation supplement within two years in its response to the Aged Care Taskforce final report in March 2024.
The Department of Health, Disability and Aged Care's 2Q 2024-25 Quarterly Financial Snapshot, released in March showed aged care operators' earnings before interest, tax, depreciation and amortisation (EBITDA) was $45.77 per resident per day in 2Q 2024-25.To avoid such a situation, she urged the government to bring forward its promised review of the accommodation supplement and accommodation price settings within the next two years.
