Mini-Budget 2022. What happened for aged care?

Once again, older Australians have been granted a reprieve from any increases in aged care fees.

Aged care providers continue to face financial challenges and workforce shortages are particularly challenging. The mini-Budget handed down by Government on 25 October, introduced an additional $3.9 billion funding towards specific aged care related initiatives. Most of these initiatives have previously been announced and they reconfirm the Government's commitment to improving aged care.

The current Government remains committed to most of the five-year plan announced by the previous government in the 2021 Federal Budget, so no surprises in tonight’s  mini-Budget.  

A new Aged Care Act is being written, with a greater focus on person-centred care. It is expected to be introduced in 2023.

What was announced (or reconfirmed) in tonight's mini-Budget?

  • Care minutes and registered nurses – average care minutes will increase in two stages, with 200 care minutes per resident per day (including 40 nursing minutes) from 1 October 2023 and increasing to 215 care minutes (including 44 nursing minutes) from 1 October 2024. From 1 July 2023 all residential care services will need to have a registered nurse on site at all times, unless an exemption has been granted. These increases in staff costs, will be supported with additional $2.5 billion of government funding.

  • Better food – Maggie Beer has campaigned for, and trained aged care catering staff on how to provide, better and more nutritional food. The Maggie Beer Foundation will be granted $5 million to support these activities.

  • National registration scheme – national registration for personal care workers will be established, including a code of conduct, better employment pathways, ongoing training and English proficiency training.

  • Capping home care fees – administration and management fees on home care packages are proposed to be capped, with exit fees abolished, to ensure more of the home care package is available to fund direct care services.

  • In-home care services – the government remains committed to merging the Commonwealth Home Support Program and Home Care Packages into a single in-home care program, but this has been deferred by a further year to 1 July 2024 to allow further consultation.

  • New complaints process – a dedicated Aged Care Complaints Commissioner will be re-established (previously combined into the Quality and Safety Commission) and a new independent Inspector-General of Aged Care will be established to target systemic administration and governance issues with an aim to improve outcomes for clients.

One unknown factor is the impact of the aged care worker wage claim currently before the Fair Work Commission. This is expected to increase wages for the 300,000 aged care workers but the quantum of the increase is unknown.

The Government remains committed to fully funding the wage increases, but has not indicated how this will be funded or whether any of this cost will be reflected in changes to client fees. The results of this wage claim are expected in the coming months.

If you have any further questions on the mini-budget and how it affects aged care, we are here to help you – just get in touch with us!

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