A cleaner future for all Australians

Aged care residents and aged care providers will receive fair and generous financial assistance to ease the transition to a clean energy future under the Federal Labor government’s plan to cut carbon pollution.

Minister for Health and Ageing, Mark Butler, spoke to ABC radio yesterday (Wednesday, 13 July 2011), suggesting the plan to cut carbon pollution would build clean energy for future Australians.

“We are putting in place assistance measures to ensure all Australians are better off as the country moves towards a cleaner future,” Mr Butler says.

Under the Government’s Household Assistance Package, the vast majority of Australians living in aged care facilities will receive financial support to assist with costs resulting from the introduction of a carbon price, either through a new Clean Energy Supplement or tax cuts.

More than 2,700 aged care providers across Australia will also receive financial support to assist with the impact of a carbon price through changes to the basic daily fee arrangements. This will enable providers to charge residents a slightly higher percentage of the maximum base rate of the pension.

The fee that providers can charge residents will be increased by about 1% of the maximum rate of the pension (roughly 84 to 85%), from 1 July next year.

“These arrangements will ensure assistance is shared fairly between aged care residents and the aged care home,” Mr Butler says.

About 50% of assistance paid through the pension will flow to the provider and the remaining amount will go to the resident to help with their other costs.

“Residents who don’t receive assistance through their pension, senior’s health card or tax cuts will also be protected from fee increases. The government will provide an additional supplement to aged care providers in respect of these residents,” Mr Butler says.

Under the new assistance measures aged care facilities will receive an additional $126.8 million over five years to assist with the impact of the introduction of a carbon price.

Are you in favour of the carbon tax and what are your thoughts on the effect it will have on the aged care industry? Let us know what you think by commenting in the box below.