With just over four weeks until the 2024-25 Federal Budget is announced on 14 May, anticipation is building for Treasurer Jim Chalmers to restore some much-needed certainty to the aged care sector.
As we report in this issue, the Shadow Minister for Aged Care, Anne Ruston is calling for the Government to address the aged care sector’s workforce shortage crisis – the subject of this week’s issue of SATURDAY – in the Budget.
So, how could this be addressed – and what else could be on table for providers – in the Budget papers?
The Fair Work Commission’s latest wage rise
The Government had asked the FWC to bring forward its decision on Stage 3 of the Aged care Work Value case to the end of March – presumably so it would be able to announce funding to support its decision in the Budget.
Prime Minister Anthony Albanese had been coy when asked about whether the Government would fully fund the decision – but it would be an easy target for the Opposition if the Government doesn’t fully cover the cost.
The timing for the new Aged Care Act
As we covered last week, it was no surprise that the Government finally conceded that the new Act would not be ready for its planned 1 July 2024 implementation date. With speculation that this will now be moved to January or July next year, the Budget should shed some light on the new timeline.
The Government’s response to the Aged Care Taskforce’s recommendations
Minister for Aged Care Anika Wells has yet to reveal whether the Government will take up the recommendations of the Final Report – released last month – with the media speculating that the Minister is now hammering out a deal for bipartisan support for its measures – including Plan B, increased consumer contributions for aged care accommodation and daily living expenses.
More help with recruiting aged care workers
After a slow start, the Government’s Aged Care Industry Labour Agreements – introduced in May last year – are providing good results for the few aged care providers that have taken them up.
With workforce shortages still a struggle across the sector, removing some of the red tape for this pathway – and introducing further incentives to enable providers to sponsor overseas staff is an obvious short-term solution.
With housing in short supply and many operators purchasing houses and organising rental agreements for their staff, incentives for providing worker housing would also be a smart move.
More Home Care Packages?
After releasing steady streams of new Packages in recent Budgets, the Government has eased off on new Home Care Packages – just 9,500 were in last year’s Budget with the waitlist increasing by 35% in the last 12 months according to the latest data.
The Aged and Community Care Providers Association (ACCPA) was pushing for 80,000 new Packages in its pre-Budget submission. This figure seems optimistic – Bolton Clarke’s Tim Hicks today puts the number needed in this Budget at 40,000.
But when new bed development is still at a standstill, home care remains a (relatively) affordable alternative for the taxpayer’s coffers.
Shared Care for retirement living
With the Government recognising the importance of retirement villages in the ageing journey for the first time in the Exposure Draft of the new Aged Care Act, there is now an opportunity for the Government to capitalise on the role of villages through the Retirement Living Council’s proposed Shared Care model – and save on aged care costs.
The RLC had recommended a trial or pilot with the hope that this model could expand when the new Support at Home program commences in July 2025 – so it would need be part of this Budget.
Watch this space then.
