2008-2009 Aged Care Approvals (ACAR) round details

The Minister for Ageing Justine Elliot has described the 2008-2009 Aged Care Approvals Round (ACAR) applications as “healthy” and “competitive” with more than three times as many places sought in Victoria than places available. However, industry comments have highlighted the shortfalls in WA, NT, ACT and Tasmania.

“The figures speak for themselves. Nationally, the aged care sector has sought 12,857 places for 7,663 on offer. That is a 5,194 over-subscription,” Mrs Elliot said.

The Minister also rejected claims that there was a shortage of nursing home beds.

As of June 30, there were 2,830 nursing homes and hostels in Australia; 174,669 residential places; 46,475 community care places and 1,963 transition care places. There are 1,592 approved nursing home providers in Australia.

Over the next three years, the Rudd Labor Government would create more than 37,000 new aged care places. This builds on the 221,144 aged care beds and community care places already operational.

Mrs Elliot released the preliminary 2008-2009 ACAR data showing the response in NSW, Victoria, South Australia and Queensland was extremely positive.

Decisions on places are made independently by the Department of Health and Ageing. Assessments of the applications are underway and final decisions are expected by mid-year.

In relation to Tasmania and WA, the Australian Government has provided record Zero Real Interest Loans (ZRIL) to help nursing home providers. They are $16.070 million and $46.6 million for Tasmania and WA, respectively. Round Two of the ZRIL will target the NT.

However, press reports have highlighed the shortfall in bed applications in Tasmania, WA, and the ACT, and the complete lack of applications in the NT.

A story in The Australian, reported that “New government statistics show aged care providers in Western Australia, Tasmania, the Northern Territory and the ACT have chosen not to take up all the subsidised places put out to tender late last year, in the biggest protest yet against the Government’s funding formula for the sector.

Last year, the Health Department was unable to find takers for 735 of the 1,532 beds on offer across four states.

In WA and Tasmania, less than half the subsidised places available attracted bids, while no bids were received for the 24 places offered in the NT.

The annual process is key to Canberra’s planning to ensure enough beds of the right type are built to accommodate a rapidly ageing population.

It has long offered public funds to support the creation of new places by private, non-profit and state government nursing homes and hostels, but the number of bidders per bed has progressively fallen.

Minister for Ageing Justine Elliot seized on the figures in Victoria, NSW, Queensland and South Australia, which showed an oversubscription of the Government’s bed offer, as proof that Australia was not facing a beds shortage.

Aged Care Association Australia chief executive Rod Young said “the growing lack of interest in the subsidies showed just how inadequate they were.”