Budget Changes Narrative on Aged Care

Catholic Health Australia

Australia's not-for-profit Catholic aged care providers have welcomed the budget for delivering meaningful investment to aged care, sticking to key commitments and setting up future improvements.

Catholic Health Australia said the $11.3 billion to fund increased wages for aged care workers was the centrepiece of a positive budget.

"Tonight over 250,000 age care workers feel valued and respected, knowing that they will receive a much-deserved pay rise on 1 July," said CHA Aged Care Director Jason Kara.

"This changes the negative narrative that has been dominating the aged care sector. It's an excellent first step toward improving attraction and retention of aged care staff."

Key measures in the budget included:

• $827.2 million over five years in the delivery of aged care services and implementing the Royal Commission into Aged Care Quality and Safety, including $112 million on a new General Practice in Aged Care incentive payment • $309.9 million over five years to improve the regulation of the aged care sector, including enhancing the Star Ratings system and funding the Regulator's audit program • $536 million over two years to address the ongoing cost of COVID in aged care • $48.6 million to establish Aged Care Complaints Commissioner and the Inspector-General of Aged Care, recommendations from the Royal Commission to improve transparency and systemic issues within aged care • $312.6m for improving aged care ICT and better information for consumers

These financial wins for the sector were matched by a range of policy wins. The Support at Home reforms have been paused until 1 July 2025 in response to provider feedback that more time was required to co-design a quality system that properly consulted all stakeholders.

"The Albanese Government and Aged Care Minister Anika Wells have demonstrated a real willingness to listen and engage with all stakeholders which will greatly assist the delivery of real improvements for aged care residents and an ageing population," Mr Kara added.

"We welcome the opportunity to co-design the new Support at Home program with government and consumers. The extra year was critical to ensure that the new system would provide quality, sustainable services that support people to remain in their own home for longer."

"We also welcome the government pausing the international student visa restrictions due to commence on 1 July to 31 December for those students working in the aged care sector.

"If implemented as planned, the student visa restriction was likely to have a detrimental impact on the care provided to elderly Australians. Providers are working hard to recruit and train a quality care workforce ahead of the 200 minutes of care requirements in October this year. Placing further impediments to a workforce would have left residents short of these standards."

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