Optimizing Aged Care Funding: Ensuring Sustainable Solutions

Chris Grice, CEO of the National Seniors Australia (NSA), highlights the Federal Government’s decision to delay the implementation of the new Aged Care Act. This pause provides an opportunity for thorough deliberation on the intricacies of funding adjustments.

Following the recent release of the Aged Care Taskforce’s recommendations and fve years since the Royal Commission into Aged Care Quality and Safety, the government’s commitment to refning funding models is paramount. As emphasized by the Royal Commission, sustainable funding is imperative for meaningful change in the aged care sector.

The Taskforce’s comprehensive report, unveiled on March 12, delineates 23 recommendations, marking a pivotal moment in the journey towards a safer and higher quality care system. However, the meticulous design and legislative detailing of these changes are pivotal stages, subject to rigorous parliamentary scrutiny.

Key among the Taskforce’s proposals is the exploration of additional funding avenues to bolster the aged care system. Currently, the government shoulders a signifcant portion of aged care costs, with 75% of residential care and 95% of home care services funded federally. Recognizing the growing elderly population and increased life expectancy, sustainable revenue streams are imperative.

Rather than advocating for new levies or taxes, the Taskforce underscores the importance of expanding existing co-contribution frameworks. This approach ensures fairness and addresses concerns regarding intergenerational equity and the cost of living.

Notably, the Taskforce recommends reinforcing safety nets for those unable to afford cocontributions.

Moreover, the Taskforce advocates for governmental primacy in funding direct care services, reserving co-contributions for non-care living expenses. Any adjustments to cocontributions should be phased in gradually, with provisions for existing residential care recipients and home care recipients as their needs evolve. NSA’s response underscores the need for ongoing consultation, incremental adjustments to co-contributions, and enhanced transparency and accountability measures. Quality care should remain paramount, irrespective of fnancial contributions. Additionally, bipartisan support is essential to depoliticize aged care funding reform. Transparency measures, including mandatory fnancial audits for service providers, are crucial for restoring confdence in funding management. By prioritizing these considerations, the government can garner community support and ensure equitable access to quality care for older Australians.

Although the delay in implementing the new Aged Care Act is regrettable, it presents an opportunity for meticulous refnement. Older Australians have long awaited legislative changes that prioritize human rights, quality care, and fnancial transparency. NSA stands ready to collaborate with the government to navigate this pivotal juncture and advocate for the best interests of older Australians. Stay tuned for further updates as we engage closely with policymakers on funding reform and legislative enhancements within the new Act.