Providers list budget priorities

Earlier in the week, aged care providers shared their budget wish list with Community Care Review. With a fully funded pay rise – plus on-costs – top of the agenda, no doubt they’ll be welcoming the government’s pre-budget announcement today.

Yvonne Timson – chief executive officer at Western Australian home care provider Community Vision – told CCR her “budget wish list” was a long one.

“First and foremost is the government fully funding the Fair Work Commission’s 15 per cent wage increase for the aged care sector,” said Ms Timson.

“Support workers in this sector are the most deserving of the increase and with another interest rate rise just announced, it is even more critical so we can continue to both retain and attract workers in the sector.” 

However, Ms Timson added that this increase in funding needs to cover the additional on-costs for providers – not just the direct wage increases of support workers.

“Costs directly associated with the providers include superannuation, leave liabilities and workers compensation, for example. The public often consider direct salary costs, but for all organisations – not just aged care providers – there are these additional costs associated with any wage increase.”

This then leads to the need for more funding to cover operational roles, said Ms Timson. “The people in finance, reception, or even IT, are all integral to the smooth operation of our business and, ultimately, the best delivery of care. None of these roles can exist without the other. Sadly, this is likely an unrealistic wish.”

Ms Timson told CCR the sector also needed to see a commitment of ongoing indexation on all forms of aged care funding to fully cover the consumer price index.

“For too long, this has fallen behind and, although this was part of the royal commission findings, it was never implemented. No provider wants to be put into a position where they must cut other costs to ensure they can afford to pay the already legislated wage increases which will come into effect on 1 July.” 

Lastly, Ms Timson said the sector needed recognition of the additional costs required for operating regional services.

“The current Modified Monash Model does not work for many regional towns and areas, which reduces choice and control for any of our older Australians living in these areas. We often talk about being connected to place, but without the appropriate funding this can never be fully realised.”

She added: “If we, as a society, do not start tackling and funding these areas soon, the care for our older and most vulnerable will fall even further behind.”

“There are many additional employees who also need to be recognised.”

Sandra Hills – CEO of Victorian aged care provider Benetas – would also like to see the government confirm all costs related to the incoming 15 per cent are covered.

“The government needs to ensure they fund all on-costs of the wage increases such as leave entitlements and superannuation to ensure they do not further burden providers,” Ms Hills told CCR.

On the topic of costs, Ms Hills, too, would like to see ongoing indexation on a parity with consumer price index increases.

It is, she said, “absolutely vital to improving the sustainability of aged care. Every year that this is missed is a further blow to providers who are already stretched thin. The baseline increases to the cost of living also impact the cost of our service, as well as our ability to provide more beds for Australia’s ageing population.”

Ms Hills said the sector also needs the federal government to give further serious consideration into consumer co-contributions.

“This could be through an increase to the cap on individual payments, or by asking more wealthy customers to increase their co-contributions or daily care fee through means testing.

“As a not-for-profit provider, we believe there are enough safeguards in place to protect those who need assistance, and by asking for larger contributions from those who are able would improve the sector’s ability to provide services to all.”

“It is the clarity that is needed.”

Chris Mamarelis – CEO of NSW and Queensland not-for-profit provider Whiddon – would like to see the government offer the sector a clear sense of direction.

“As a provider committed to regional aged care, Whiddon – along with other providers in our industry – need clarity around how the government plans to fund incoming industry reforms to ensure our workforce remains focused and empowered to deliver support for those in our care.”

As an example, Mr Mamarelis pointed to changes to the skilled migrant income threshold. From 1 July, skilled migrant workers will need to be paid a minimum of $70,000 – up from $53,900.

“The sector is eagerly awaiting the final details around the announcement and anticipates that the government will take steps to consider the impacts for sectors like aged care,” said Mr Mamarelis.

Acknowledging that skilled migrants and students on working visas “represent an important part of the aged care workforce,” Mr Mamarelis would also like to see the process to become a registered nurse simplified.

“Like many other providers, Whiddon has faced challenges in recruiting key roles, particularly RNs, in the regional communities we support … These workers are met with significant hurdles and barriers to navigating the requirements and completing RN bridging qualifications.”

The process, said Mr Mamarelis, needs to be streamlined. “New Zealand has just adopted a similar model to incentivise and address their shortages. There’s no reason we cannot do the same.”

On a closing note, Mr Mamarelis reiterated the need for detail: “Senior Australians and aged care employees are waiting for the Albanese Government to reveal its hand in next week’s budget. It is the clarity that is needed for the sector to look forward with more confidence and positivity.”

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