Budget 2021: Start of the end of elderly ‘neglect’

Almost half of the Morrison government’s record $17.7bn cash splash on rectifying the aged care system is aimed at allowing elderly Australians to age at home if they choose.

Health Minister Greg Hunt. Picture: Getty Images

Almost half of the Morrison government’s record $17.7bn cash splash on rectifying an aged care system “besieged by neglect” is aimed at allowing elderly Australians to age at home if they choose.

“Home care” forms the first pillar of the government’s landmark reform plan, receiving $7.5bn over five years, which will go towards helping clear a queue of more than 100,000 elderly Australians waiting to receive a homecare package.

The funds will also go towards increasing support for carers and making it easier for senior Australians, particularly those living in regional and rural locations, to navigate the aged care system.

An additional 80,000 homecare packages will be created from a $6.5bn investment aimed at ensuring the needs of older Australians are met. This cash injection will mean 275,600 packages are available to senior Australians by June 2023.

The royal commission’s final report, publicly released in March, made 148 recommendations warning of the need to streamline homecare packages and train more carers. As of last June 30, 102,081 older people were still waiting for homecare packages.

Treasurer Josh Frydenberg told The Australian the full supplement of required homecare packages had not been announced due to the inability of the sector to keep up with increased demand

“Forty thousand of those homecare packages will start from July 1 and the other 40,000 from July 1 next year. They’re predominantly level 3 and level 4 packages, which are the more expensive packages, the demand, as you say, is slightly higher than 80,000 but workforce is a real issue here.”

Mr Frydenberg said the government would also invest in training and upskilling aged care workers, as well as introducing retention bonuses for nurses to ensure the workforce of 366,000 could meet the growth in demand.

“We’re working very hard on getting flexibility of movement through NDIS workers, aged care workers; veterans care workers, because this is going to be a critical need across the economy,” he said. “We have to proceed in a way that is based on what the workforce can achieve.”

The government hopes to attract 18,000 new staff to the homecare workforce as part of a $652.1m investment, which will also upskill sector staff.

Seniors receiving in-home and residential aged care will also be supported by 6000 new personal care workers, with additional surge workforce capacity created in regional and remote locations.

Finance Minister Simon Birmingham told The Australian the government was confident the funding boost would cover those waiting for care because the acceptance rate for packages wasn’t quite 100 per cent.

“As we work through offering those two lots of 40,000 (homecare packages) there is an expectation we would and should meet demand … expressed in the waiting list,” he said. “But obviously the government equally outlines … commitments to new a homecare program from 2023, which is part of the timing and sequencing put down by the royal commission.”

The 80,000 packages add to the 50,000 made available in October following the release of the royal commission’s interim report.

The Aged Care Quality and Safety Commission will receive $55.1m to specifically monitor quality of care among those Australians served by the new homecare packages. The Serious Incident Response Scheme, designed to report ­instances of abuse and psychological harm at nursing homes, will be expanded to cover those receiving at-home care from July next year at a cost of $14m.