COTA Chief Executive Ian Yates has forecast that there will be no major initiatives for the aged care sector in Tuesday’s Federal Budget – but says the Government may look to address the looming Fair Work Commission (FWC) case for an increase in aged care worker wages.
As we reported here, the Health Services Union (HSU) launched the original case for a 25% wage increase for aged care workers in November 2020, but despite a consensus recently being reached between the peak bodies and unions on the need for a rise, neither the Coalition or Labor has committed to supporting a 25% increase ahead of the final hearing in July.
“Almost impossible” not to increase aged care wages
In a pre-Budget online briefing to journalists yesterday, Ian said he would consider it “almost impossible” for the FWC not to come to the conclusion that an increase is needed – whether it meets the unions’ 25% demand or not.
“If you went historically back to the Social and Community Services (SACS) award was increased dramatically, that was done in a series of phases at the time, but Government – after being initially unsure about it – decided that clearly they had to fund it,” he said.
“The issue will be whether Government explicitly deals with that or whether in those provisions for decisions not yet taken, there will be an allocation.”
Given the Government has already announced 40,000 new Home Care Packages HCPs) for this financial year and the 2022-23 financial year and the current workforce shortages, Ian expects there will be no new Packages contained in the Budget.
“We have been hearing for a while now … from people in places around the country who have received their Package much faster than they would have a year ago, but can’t find the provider with the staff to provide the services that they need,” said Ian.
“Government understands they need to roll it out and they are rolling it out as fast as their workforce can pick them up.”
More funding for COVID-19 and flu
The CE also expects there may be greater funding for pandemic-related costs following the Government’s announcement last week of $1.2 billion to protect aged care homes from COVID-19 and influenza during winter.
“We will see the Government is gearing up for the winter campaign for both a fourth COVID shot, but also for making sure that there is a blanket coverage of that flu vaccine, because we are going to see flu this year.”
Ian also stressed the need to double down on the five-year timeframe for the Royal Commission reforms following the upcoming May Federal election.
“There has been an enormous pressure within Government and within the bureaucracy between the Budget last year and now to roll that reform program out because an election is coming and the Government wants to be seen to be honouring those timetables,” he concluded.
“Whatever the outcome of the election, those of us with this as our agenda are going to have to double down on our efforts to make sure that with changes of ministers and the pressure accelerator a little bit off, that we don’t start getting significant slippage.
“Generally speaking that policy direction, which is set not by the Government, but by the Royal Commission will be followed and has to be followed.”
Check out our Federal Budget coverage in next Thursday’s SOURCE.
