Fixing wreck of aged care could be Scott Morrison’s legacy

Fixing aged care could be Scott Morrison’s legacy, but simply throwing more money at an out-of-date system won’t work, advocates say.

The current budget commits around $21bn a year to aged care, rising to $25bn in the following three years.

Fixing aged care could be Scott Morrison’s prime ministerial legacy, but simply throwing more money at an out-of-date system won’t deliver the reforms needed, aged-care advocates say.

After The Australian revealed Tuesday’s federal budget is set to deliver a new $18bn aged-care reform package over the next four years, advocates say a system-wide overhaul is needed to cut out waste and ensure better-quality care to the growing cohort of older Australians.

“If you toss a lot of money into the current system, you’ll waste a lot because there are inefficient aged-care providers delivering poor outcomes for clients and wasting money,” Council on the Ageing Australia chief executive Ian Yates said. “But assuming there is a scaling up of the new funding over the forward estimates, we are now beginning to talk about serious money going into the sector.”

He said the budget measures should fully revamp residential care funding and end the rationing of home care.

The current budget commits around $21bn a year to aged care, rising to $25bn in the following three years. Beyond the new funding commitments, The Australian understands the government will provide a response to all 148 recommendations in the aged-care royal commission’s final report.

Sean Rooney, representing the Australian Aged Care Collaboration, a coalition of providers, said the budget and the government’s response to the royal commission must “set up aged care for the future”. “Prime Minister Morrison called the royal commission. This is his chance to create a legacy in aged care. If he can align the policy, regulation and funding of aged care to the needs of older Australians and the expectations of the community, that would be a significant legacy.”

Mr Rooney said providers will be looking to the budget to end the waiting list for home-care packages, to source, train and skill up the care staff required to look after greater numbers of older Australians, and to alleviate the financial stress on aged-care homes.

In its final report released in February the royal commission found that decisions by successive Australian governments had stripped out about $9.8bn a year in funding for aged care. The result was a system in neglect, it said.

The Australian understands the new funding package will focus on workforce measures to ensure aged-care workers are highly trained and better paid. And it is set to end the bed licence system that critics said hampered competition among nursing homes and allowed poor performing facilities to continue operating.

Opposition aged care services spokeswoman Clare O’Neil said the government had neglected aged care for years and an $18bn funding increase still wouldn’t cover all the royal commission’s recommendations.

“Aged-care experts and worker representatives have consistently stressed that extra funding committed to reduce the home-care wait list will be ineffective unless there is a clear and detailed plan to recruit and retain thousands more care workers,” Ms O’Neil said.

“Does the Prime Minister accept this involves much better remuneration for care workers? Will he back higher pay rates?”

Ian Henschke, from National Seniors, said the closed international borders complicated the workforce issues, as many workers have previously been sourced from overseas.