Elderly struggle to keep up with inflation and aged care fees in South Australia

Home aged care providers are hiking their bills to cope with inflation and rising fuel prices, but the elderly are struggling to keep up.

Inflation and surging fuel prices are putting the squeeze on some of Australia’s most vulnerable citizens, as in-home aged care providers hike fees to keep up with the soaring costs.

It has prompted scathing criticism of the federal government’s “patently inadequate” aged care subsidies that industry leaders say is not enough to keep up with inflation, predicted to be well over 5.1 per cent, and wage increases.

Analysis by The Advertiser has revealed some of SA’s largest home care providers have made a range of increases to various fees, as Labor moves to introduce a bill that would cap “admin” costs when parliament resumes from Tuesday.

Not-for-profit organisation Resthaven this month bumped its hourly rate for in-home aged care by $2 to $65 during normal hours. The provider’s weekend rate jumped from $91 to $94, and the public holiday rate from $151 to $156 an hour.

Several aged care providers in SA have put up their fees for in-home home care.

ACH, another large SA provider, also increased its hourly rates from $66 to $68.50 for care during the week, and from $74 to $86.60 on Saturdays. The hourly rate for Sundays jumped from $92 to $102.80 and public holiday now command $121 an hour, up from $107.

ACH also made increases to its administration fees, putting up its fortnightly package management costs from $197 to $201 for Level 4 packages, which provides the highest level of care for elderly people with complex needs. Care management fees were also increased from $362 to $372 a fortnight.

Council of the Ageing chief executive Ian Yates said the elderly and their families were struggling to meet the rising costs.

“That is an issue for customers, that services are being reduced or the family often has to pay more to get the same level of service,” Mr Yates said.

Ian Yates Chief Executive, COTA Australia.

Last month, the federal government increased subsidies paid to aged care providers by 1.7 per cent, meaning elderly Australians could get up to $53,268 a year in government funding to go towards their care at home – up from $52,377 last year – depending on their level of care.

Aged and Community Care Providers Association interim chief executive Paul Sadler said that was “patently inadequate” to offset minimum wage increases of 5.2 per cent and industry award wages rising 4.6 per cent – plus inflation of at least 5.1 per cent.

Mr Sadler said rising fuel costs have had a “big impost” on providers, who must travel to clients’ homes.

“I was talking to a (large) statewide Sydney provider and their fuel costs they are paying to their staff were going up $600,000 per annum,” he said, adding that existing clients must agree to fee increases before they are passed on.

An ACH spokeswoman said it had reviewed its pricing “in line with the increased costs of providing quality in-home care services”.

Aged Care Minister Anika Wells said Labor “inherited an aged care system under stress and riddled by the neglect of the former government”.

“The renamed Independent Health and Aged Care Pricing Authority will inform the Government of the necessary funding levels required for residential and home care from 1 July 2023,” she said.

“In the first week of sitting, I will introduce legislation that delivers three election commitments, including capping administration fees for Home Care Packages from January 2023, plus more care minutes and putting nurses back into aged care.”

The Advertiser contacted Resthaven for comment.

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