Last week, the CEO of an aged care provider sent us some figures.
Check out the chart above.
As you can see, it compares their aged care subsidies versus the Modern Nurses Award in 2014 and 2019.
The award rates for nurses have grown 16%. This is the minimum legislated increase a provider must pay – so many operators would have enterprise bargaining agreements that pay more.
In contrast, ACFI funding increases have tallied just 5%.
“Any debate into workforce availability or capacity of the sector to pay more or increase staffing is inherently linked to the available funding,” the CEO argues.
In addition, the Payroll Tax supplement – which had amounted to around $4.50 per day – has been discontinued, while providers have also lost their capacity to deduct an Accommodation Bond retention – worth around $3,500 a year – for those residents who pay RADs.
If you have a 100-bed home where 60% of residents are on RADs, that is $210,000 a year in lost income.
For the payroll tax, it adds up to a loss of $164,000.
“This chiseling effect of funding for the sector has inhibited the sector’s ability to employ adequate numbers and quality of staff, evidenced by the cases referred for investigation by the Royal Commission,” the CEO concludes.
A simple example of the growing financial pressures currently facing the sector – but a powerful one.
The peak bodies have been consistently calling on the Government to provide additional funding – so far without success.
This is just one talking point that they could be taking to Government to press their case – but given the delicate role that the peaks must play in navigating between their members, Government and all the various players, can they push these figures in their face?
Would they literally be ‘poking’ the Government in the eye?
There is nothing however to stop individual operators from taking their figures to Government – and they can do so at the local level.
Is it time for providers to step up and go straight to the source?
The same approach applies to the Royal Commission – see the next story.
