Federal Labor promises cap on home care administration and management fees

Opposition Leader Anthony Albanese has made another big promise to home care users, vowing to put an end to rorting of the system.

Federal Labor has vowed to put a cap on home care administration and management fees, as well as requiring monthly reports to users in a bid to stop rorting of the system.

Opposition Leader Anthony Albanese said it would mean users could be confident their money was going to care rather than management bonuses, new office fit-outs or marketing.

Mr Albanese promised a Labor government would work with older Australians, their families, providers and experts to set caps that protected the quality of care.

“Labor will restore integrity and transparency to our aged care system,” he said.

“Whether you are in residential care or home care, Australians should have confidence the money they are paying is going where it should – towards their care.

“Labor is calling time on aged care providers who rip off vulnerable Australians.

“We know home care is a vital part of the aged care system – that’s why we want to make sure it is operating as it should, in the best interests of Australians.”

Anthony Albanese says Labor’s new promise is aimed at putting an end to rorting of the system. Picture: Steve Pohlner

Shadow Minister for Aged Care Services Clare O’Neil said users of home care packages should get better value for money.

“Fees should be paying for high quality care – not office work,” she said.

“Labor will ensure the whole aged care system – residential and home care – improves on our watch.”

According to the Grattan Institute, about 25 per cent of home care fees go to administration and management costs.

The Aged Care Royal Commission was told it was up to 50 per cent, Labor noted.

The announcement follows a promise to crackdown on dodgy residential aged care providers, by implementing tough penalties for systematic abuse and neglect.