“Woefully inadequate and unsustainable”: ACSA slams indexation increase for home and residential aged care funding

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Peak body Aged & Community Services Australia (ACSA) says the indexation increase of 1.4% to residential aged care announced last week is not enough to address increased complex health and care needs among older Australians, unprecedented demand and rising operational costs.

ACSA CEO, Pat Sparrow (pictured), said, “wages in the award system have been boosted by a 3% annual increase which clearly displays the inadequacy of the 1.4% indexation to support our staff in aged care”.

The indexation increase has also drawn strong criticism from LASA CEO, Sean Rooney, who says aged care funding “has not kept pace with the rising wages of staff or the growing needs of older Australians and the costs of their care.”

It is worth noting that the 1.4% was likely not a premeditated strategy from the Government, but rather a simple financial formula in place until the end of the Royal Commission in April 2020.

Will we see changes then?