OPINION
SMOKE AND MIRRORS THE GOVERNMENT’S RESPONSE TO THE AGED CARE ROYAL COMMISSION MIGHT LOOK GOOD ON ITS SURFACE, BUT LACKS SUBSTANCE UNDERNEATH, SAYS THE GRATTAN INSTITUTE
Stephen Duckett and Anika Stobart, Grattan Institute.
T
he Royal Commission into Aged Care Quality and Safety called for major reform of Australia’s aged care system. Business-as-usual is no longer acceptable. But does the Government’s response deliver what’s needed?
Bold rhetoric, with little substance
The Federal Government’s bold rhetoric appears to accept that significant reform is needed. The Prime Minister’s Press Club address in February 2021 said the Government would deliver ‘step-change reform’ in aged care. In his Federal Budget response, the Minister for Health and Aged Care, said that the Government was delivering a ‘once in a generation reform to aged care to deliver respect, care and dignity to our older senior Australians’. And the Government said they had accepted 126 of the 148 recommendations of the Royal Commission—either in full or in principle—noting that 25 were specific to the individual Commissioners. This all sounds very rosy. But looking beyond the slogans, it is hard to find many structural mechanisms that will actually deliver the changes needed. Sifting through the fine print, the Government often appears to adopt only the theme of the Royal Commission recommendations, rather than the specifics. In many cases, where it has ‘accepted’ the recommendation, the Government ignores the mechanisms proposed by the Commissioners.
In its Budget response, the Government’s investment, while significant, is only about half of what the Royal Commission called for. In a sleight of hand, the Government calculated the investment over five years rather than the conventional four-year forward estimates or the more important steadystate incremental annual spend. The Government committed to an additional $2.5 billion for more Home Care Packages per year when fully implemented, and about $2.4 billion more for residential care per year when fully implemented. The total steady state increment is about $5.5 billion from 2023-24 and beyond—not enough to create a needs-driven, rights-based system, called for by the Royal Commission and the Grattan Institute. This lack of commitment undermines the potential for achieving the transformative change needed, and as called for by the Royal Commission. Without transformative change, we may end up again where we started: a system in crisis.
Immediate fixes are a start, but not enough The Budget includes funding for 80,000 extra Home Care Packages over two years. But the Government has not explicitly promised to clear the waiting list and bring waiting times down to 30 days, as the Royal Commission called for.
The Budget has some good news for people in residential aged care. The Basic Daily Fee (for services including food) will be increased by $10 per resident per day, as called for by Continued on page 16
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