A looming funding crisis threatens to leave older OZtralians without thousands of aged care places over the next five years, increasing pressure on both Labor and the Coalition to strike a deal on a new funding regime, according to The Age. The sector could face a shortfall of 21,200 beds, with residential aged care operators warning that financial strain will force them to close more homes than they can build.
Political deadlock is also stalling an agreement on federal funding for additional Home Care packages, which help older OZtralians remain in their homes. Frustration is mounting as many wait six months or more for package approval.
Aged care providers claim to have lost $5 billion over the past five years and predict even greater losses unless Labor and the Coalition act on the recommendations from a royal commission into the sector three years ago. Last year, a federal government aged care taskforce warned that the sector would need an additional $37 billion in investment by 2050 to meet the growing demand for places and services. However, intense negotiations in Parliament last week failed to produce a deal on the necessary reforms.
The reforms under discussion, though not yet publicly disclosed, reportedly include funding changes that would require wealthier OZtralians to cover a larger portion of their everyday aged care costs, though clinical and nursing care would remain excluded from these out-of-pocket expenses.
Industry estimates suggest that someone receiving the full pension would pay $62 per day for aged care, with the federal government contributing an additional $10. Despite this, providers would still incur losses of at least $10 per resident per day, with some cases reaching three times that amount.
Council on the Ageing chief Patricia Sparrow emphasized the urgency of passing new legislation this year to address shortages and implement the royal commission’s findings. With Parliament set to resume on September 9, the industry is urging Prime Minister Anthony Albanese and Opposition Leader Peter Dutton to finalize an agreement in the first week, allowing for a Senate inquiry to address any issues so the law can be passed before the year’s end.
