Budget 2021: $10b aged care funding the largest package in Australian history
Support for the elderly to stay in their own homes will be part of a $10 billion overhaul of the aged care sector in Tuesday’s Federal Budget.
NSW
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A remedy for a shortage of workers, support for the elderly to stay in their own homes and more resources for residential facilities will feature in a $10 billion-plus overhaul of the aged care sector.
Described by Health Minister Greg Hunt as the “largest package in Australia’s history” for aged care, the federal government’s 2021-22 Budget will seek to dramatically improve older Australians’ living standards and quality of life.
More funding for home care packages and an increase to the daily fee paid on a per bed basis to aged care providers — which were both recommended by the Aged Care Royal Commission — are expected to be included in the significant investment over the next four years.
Mr Hunt said the government would not be revisiting the current “user pays” settings for aged care, despite some economists suggesting older Australians should be required to use their house or superannuation to fund more of their care needs.
“There are no plans to change that (user pays) component,” Mr Hunt said.
As part of the Budget on Tuesday, Mr Hunt confirmed the government would “respond in full” to the recommendations in the final report from the Aged Care Royal Commission, which was handed down earlier this year.
“One of the important things that we have here is a response to the Royal Commission, which is based on ensuring that we have respect and care, and dignity,” Mr Hunt said.
Mr Hunt said there were “five pillars” to the government’s aged care strategy, including home care services, sustainability, safety, a quality workforce and governance.
“What we want to do in all of these elements, is to make sure that aged care is accessible and as available as possible for as many as possible.”
Treasurer Josh Frydenberg said the aged care spend in Tuesday’s Budget was a “very significant commitment”.
“(It is) designed to deal with what the Royal Commission has found to strengthen our system and ensure that older Australians can retire, can live with dignity, respect and with safety,” the Treasurer said.
It is widely expected the Budget will address the high demand for in-home care, with the Royal Commission finding an overwhelming desire among the elderly to stay in their own house for as long as possible.
Last year’s budget included $1.6 billion for 23,000 new home care packages, with the total number of recipients expected to reach about 195,000 by the end of the financial year.
Labor’s aged care spokesman Mark Butler said the recommendations in the Royal Commission report would cost “way more” than $10 billion over the forward estimates.
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Originally published as Budget 2021: $10b aged care funding the largest package in Australian history
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