This year’s Federal Budget has left aged care in limbo, according to the peak body for Australia’s not-for-profit aged care service providers.
Aged and Community Services Australia (ACSA) Acting CEO Pat Sparrow said funding for critical aged care services remained unchanged despite appeals for modest increases in subsidies in the midst of rising costs and greater demand.

“While ACSA acknowledges the constraints on the Federal Budget at a particularly challenging time, the industry is putting the Government on notice that 2012 must be the aged care budget,” Ms Sparrow said.

“This year’s bid for funding sought to maintain services’ viability and some level of growth in the lead up to implementation of reforms proposed by the Productivity Commission,” she said.

ACSA said its claim for $330 million, comprising a 1.75 per cent care subsidy for residential and community care and a $10 daily increase in accommodation charges for high-care residents, is a small price to ensure vital aged care services.

However, no new funding means those providers will continue to struggle to deliver optimum services to frail older Australians and will again be hampered in plans to meet increasing consumer demand.

“A possible increase in aged care workers’ salaries following last week’s Fair Work Australia decision, also threatens to further undermine the sector if it is not funded to pay higher wages,” Ms Sparrow said.

“Only 40 per cent of aged care providers are operating in the black, hours of community care are continuing to fall and aged care facilities are not being built.

“There can be no doubt that aged care must feature as a major component of next year’s Budget so that older Australians can be assured of a system able to meet their needs and the reforms proceeding in accordance with the Government’s commitment to aged care as a second term priority.”

Ms Sparrow said the good news was the continuation of the increased viability supplement for residential care, extended to homes under extreme pressure, totalling $16 million, and aged care being identified as a high priority under new workforce initiatives to address skills shortages and training.