Boost to aged care of $10bn

ACTION to halt a shortage of aged care workers, support for the elderly to stay in their own homes and more resources for residential facilities will feature in a more than $10bn overhaul of the sector.

Described by Health Minister Greg Hunt as the “largest package in Australia’s history” for aged care, the 2021-22 budget will seek to fund a dramatic improvement in living standards and quality of life for older Australians.

More funding for home care packages and a rise in the daily fee paid on a per-bed basis to aged care providers, which were both recommended by the Aged Care Royal Commission, are expected to be included in the investment over the next four years.

But Mr Hunt said the government would not revisit the current “user pays” settings for aged care, despite some economists suggesting older Australians should use their house or superannuation to fund more of their care needs.

“There are no plans to change that (user pays) component,” Mr Hunt said.

As part of the budget Mr Hunt confirmed the government would “respond in full” to the recommendations in the final report from the Aged Care Royal Commission.

Treasurer Josh Frydenberg said the aged care spend was a “very significant commitment designed to deal with what the royal commission has found to strengthen our system and ensure that older Australians can retire, can live with dignity, respect and with safety”.

It is expected the budget will address the high demand for in-home care, with the royal commission finding an overwhelming desire among the elderly to stay in their own houses for as long as possible.

Labor’s aged care spokesman Mark Butler said the recommendations in the royal commission report cost “way more” than $10bn over the forward estimates.