Older Australians left out with no funding for Home Care packages, aged care nurses get pay rise

Aged care nurses will get another pay rise but the sector says, with the transition to the new Aged Care Act, providers need financial help too.

Aged care nurses will get another bump in their pay, but there’s no extra money for more than 82,000 older Australians desperately needing home care, with the number of people on the waiting list soaring by almost 200 per cent since June 2023.

While there was nothing in this Budget for reducing the waiting list, the Albanese Government has backed in its pledge to increase wages for 60,000 aged care nurses, with a $2.6 billion package.

It means a registered nurse will earn $22,000 more a year than before Labor was elected. It is hoped the move will help retain and attract staff to the sector, amid a workforce shortage.

Minister for Health and Aged Care Mark Butler. Picture: NewsWire / Martin Ollman

The latest data shows half of all homes (47 per cent) staff are still not spending enough time caring for residents. One in four homes failed to meet their registered nurse care minutes target.

The Budget also includes $300m to be spent over five years on reforming the sector and fulfilling recommendations from the Royal Commission.

Ageing Australia has welcomed the Government’s commitment for future pay rises for registered and enrolled aged care nurses, but said the Budget lacked support for the preparation of sweeping reforms.

CEO Tom Symondson said providers needed financial help with the transition to the new Aged Care Act on July 1, particularly for critical upgrades to ICT and systems.

He said government grants of $10,000 were not enough, with some spending millions.

“Provider systems will need to be upgraded to interface with new systems being built by government departments,” Mr Symondson said.

“The cost to providers is immense, with some already spending millions of dollars. Individual grants of $10,000 clearly aren’t enough.”

He said providers were calling for more transition time, amid warnings there could be disruption to services if it was rushed without everything being in place.

“We’re not calling for a delay to the start date of the Act, and in particular its charter of rights for older Australians,” Mr Symondson said.

“What we are calling for is a staged approach to implementation of some of the reform programs. We all want these reforms to succeed, but to deliver them, providers need certainty on what is required and enough time to achieve it.”

Shadow Minister for Health and Aged Care Anne Ruston is worried about the next generation of older Australians. Picture: Supplied

Shadow Aged Care Minister Anne Ruston said she was worried about the next generation of older Australians who want to stay independent in their own homes for longer, but are stuck on waiting lists.

“The Government is overseeing a home care wait list that continues to blow out,” Ms Ruston said. “In fact, it has almost tripled in the last 18 months alone, leaving more than 82,000 vulnerable Australians without the critical support they have been assessed as needing.

“It is absolutely unacceptable that the Albanese Government is overseeing a skyrocketing wait list for home care.”

The scheme, which is set up to help people stay in their own homes as they age, is seeing wait times of between 12 to 15 months for those with the highest needs.

The latest Government data released in February revealed older Australians are waiting longer for home care packages under Labor.

In total there were 82,960 older Australians on the priority waiting list who were waiting for their approved home care package as of December 31, almost a 200 per cent increase (189 per cent) since June 2023.

More than 77 per cent of those are waiting to get on the program.

The latest Government data released in February revealed older Australians are waiting longer for home care packages under Labor. Picture: iStock

National Seniors Australia Chief Executive Officer Chris Grice said “additional home care packages are needed to reduce the wait times to three months as soon as possible.”

“Critically, we must have sufficient staff to deliver home care services. That’s why National Seniors Australia (NSA) continues to call for an exemption for care workers from the Age Pension Means Test as one solution to help retain experienced staff in the sector.”

Home Care Packages will be replaced by the new Support at Home program, set to start on July 1, and will have eight classifications for ongoing services, replacing the four current levels. The highest package will provide $78,000 a year to help keep older people in their homes.

Ageing Australia said the next 12 months will be critical for older Australians, with major reforms underway – including the introduction of the new Aged Care Act, the Support at Home program, and substantial regulatory changes – as well as concerns over the workforce shortages.

“Relieving the workforce crisis, transition to the new Support at Home Program and time to implement reforms properly are our absolute top priorities,” Ageing Australia CEO Tom Symondson said.