$17.7bn for aged care reforms in federal budget

The federal budget revealed a big-spending agenda, but one advocate says billions earmarked for one sector doesn’t address previous cuts.

An unprecedented $17.7bn aged care reform package announced in the federal budget has fallen short, a health advocate says.

The billions in funding over five years underpins the government’s response to the damning royal commission findings on the state of the care sector.

But Health Services Union national president Gerard Hayes said the package will not change the chronic crisis gripping aged care.

“This barely makes up for the $10bn worth of cuts that have been inflicted over the last eight years,” Mr Hayes said.

“For carers, therapists and support workers there is no commitment to permanent, better paid jobs.

“Clearly, the government’s plan is to continue exploiting the goodwill of an insecure, underpaid workforce of women.”

Older Australians can be left waiting for up to a year for a home care package.

Under the overhaul, an additional 80,000 home care packages will be released to curb the ballooning wait list for support that would allow people to stay at home.

Residential care facilities will also have to deliver an average of 200 care minutes a day per resident.

But Mr Hayes said the need in residential care alone amounted to $20.4bn over four years, according to union commissioned modelling.

He said the government had missed an opportunity to pay aged care workers more than $21 an hour, which was needed to properly attract and retain a dedicated workforce.

“Committing to increased care minutes is entirely hollow unless you have a plan to attract and retain the workforce needed to provide that care,” he said.

Treasurer Josh Frydenberg handed down his third federal budget on Tuesday night. Picture: NCA NewsWire / Gary Ramage

Other aged care advocates have welcomed the funding.

The Australian Aged Care Collaboration representative Patricia Sparrow said the budget gave real hope to more than 1.3 million Australians currently accessing aged care services, and to the sector’s 360,000 staff.

Ms Sparrow said the sector will need to employ tens of thousands of Australian workers over the coming years to meet the demands of our ageing population.

“Australia now spends half of what comparable countries do on aged care, and while this investment won’t close that funding gap entirely, it will provide structural relief in many critical areas,” she said.