What does the 22-23 October Federal Budget mean for Home Care? 

News outlets and water-cooler topics around Australia are buzzing about the recently announced Federal Budget. Whilst the headline item of $3.9 billion for aged care sounds good, the vast majority of this is directed to residential aged care. Unfortunately, it’s ‘slim pickings’ for home care.

Essentially, the Budget only directly relates to home care in three ways:

  • $23.1 million to the progression of in-home aged care reforms, including additional consultation, a large-scale trial of a new assessment tool, and the establishment of a Service List Advisory Body.
  • Commonwealth Home Support Program will be extended until 30 June 2024.
  • Home care administration and management fees will be capped and exit fees will be abolished.
The Word Budget Close Up On A Typewriter

“At LPA, we support every initiative that improves the quality of care and quality of life for older Australians.  The most important measure that the Government can do for older Australians receiving home care, is ensuring we have a viable and sustainable home care sector”.

LPA

Indirect funds for home care include more than half a billion dollars towards the implementation of aged care reform over the next four years. $1.4 billion has been allocated to other measures including continued funding of COVID-19, the implementation of an Aged Care Complaints Commissioner and Inspector-General of Aged Care, as well as the preparations of the major reforms to home care.

“This can be seen as an interim budget” says Michelle Grattan (The Conversation, 26/10/22).  At best, the October 2023 Federal Budget is pregnant with hope that the May 2023 Federal Budget will bring fair funding arrangements to the home care sector.  At worst, it seems like the home care sector is yet again a ‘poor cousin’ to residential aged care sector.

The Government has announced several proposed measures that are designed to benefit older Australians:

  • limit the amount home care recipients can be charged in administration and management fees
  • redesign in-home aged care to meet the changing needs of older Australians
  • increase access to culturally safe care for First Nations Elders and older Australians from diverse communities
  • introduce stronger regulation and independent oversight to protect older Australians from neglectful practices.
  • empower older Australians to make informed choices
  • provide tailored support for older people with disability
  • fair pricing and funding arrangements for in-home and residential aged care
  • greater transparency measures to create an open market where providers compete on quality of care
  • establishing independent oversight to hold providers accountable

(health.gov.au) 

Our Take:

At LPA, we support every initiative that improves the quality of care and quality of life for older Australians.  The most important measure that the Government can do for older Australians receiving home care, is ensuring we have a viable and sustainable home care sector. Currently, the funding arrangements simply do not reflect the cost of providing care and services. We sincerely hope that the May 2023 Federal Budget, reflects fair funding arrangements for home care providers. This needs to include funding the additional compliance costs set out in the Government’s proposed measures, as well as the increased cost of delivering care and services with surging inflation and ongoing workforce shortages.

We also hope that the May 2023 Federal Budget for In-Home Aged Care is aligned to the expectations of the new Aged Care Quality Standards.  The current Aged Care Quality Standards are akin to living ‘beyond our means’ where the level of funding is not commensurate with the required standard of care and services. The new Aged Care Quality Standards must be fully funded if we are to provide high quality In-Home Aged Care.

We all feel the incredible pressures that our industry has faced with workforce shortages, COVID-19, increased demand and funding shortages. We are hopeful that the Australian Government will work with providers to improve the provision of care for older Australians.