Calls for budget to tweak funding of home care programs
Ageing Australia has called for the government to fund care management at 20 per cent for the first year of Support at Home and review the currently inadequate indexation in the Commonwealth Home Support Program.
Provider peak body Ageing Australia has recommended the government fund care management at 20 per cent of the consumer’s package for a year from the commencement of the Support at Home program in July.
Currently, many providers allocate more than 20 per cent of their budget on care management, Ageing Australia said in its pre-budget submission.
“We recommend 20 per cent of package value be made available in the provider care management pool to ensure continuity of care for current clients and access to services for new clients who require ongoing comprehensive support in their social and environmental domains,” according to the submission.
This request comes within nine overall recommendations in the submission, which includes a $1.2 billion wish list to support the sector’s sustainability, workforce and reform implementation needs.
“Relieving the ongoing workforce crisis in Australian aged care, transition to the new Support at Home Program and time to implement reforms properly are our absolute top priorities,” Ageing Australia chief executive officer Tom Symdonson told Community Care Review.
“Without enough time and funding to support the sector to transition properly, we risk sector instability, complications and confusion for both providers and older Australians, particularly for Support at Home.”
Elsewhere in in-home care, Ageing Australia is calling for the indexation arrangements for the Commonwealth Home Support Program to be revised because “the 3.5 per cent from 1 July was insufficient to address provider wage costs.”
“This situation is compounded for those providers who pay above award wages and whose costs were not covered in the 2023 Federal Budget wages measure to address Work Value Case Stage 2. CHSP providers are actively assessing their ability to continue providing services under current program settings – at a time when demand is increasing,” the peak said in the pre-budget submission.
Ageing Australia also said that while welcoming the 10 per cent cost-of-living top-up announced in December for CHSP meals providers to alleviate cost pressures, the same cost-of-living increase has impacted other services and needs to be addressed in 2025-26 CHSP pricing.
Other recommendations
- $600 million to establish an ICT grant for aged care providers to meet the obligations of the new Act made of $400 million for capital expenses like system upgrades and $200 million for operational expenses such as training
- $188 million for a transition supplement to help providers cover the costs of implementing the new Act
- $500,000 in 2025-26 to establish a national aged care workforce strategy taskforce to collect information, sector-specific projections and identify strategies to address gaps in skills and staffing shortages and changing demands in care
- a fund to attract aged care workers – especially in rural and remote areas
- $9 million over three years to improve access to migrant workers via a sector-led migration advisory service
- $2.5 million for a three-month pilot of hospital in the home at eight retirement villages.
Mr Symondson said a smooth transition and implementation of well-planned reforms was vital for older Australians.
“Rushed changes could have a devastating effect on older Australians and the sector, which will have negative flow-on effects for the entire health system.”
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