Ageing Minister says Budget is meeting challenges of the 21st Century
Minister for Ageing, Justine Elliot said the Australian Government would provide $2 billion over the next four years through the Conditional Adjustment Payment (CAP) for providers to care for elderly Australians, above and beyond usual aged care subsidies.
Mrs Elliot said the increase in the CAP brings total Commonwealth investment in residential aged care subsidies to $28.6 billion over the next four years.
“The increase in the level of Conditional Adjustment Payment(CAP) from 7% to 8.75% of the basic aged care subsidy means an additional $407.6 million over four years for investment in the aged care sector,” Mrs Elliot said.
She also announced that the Department of Health and Ageing would undertake a review with other Government departments on the ongoing need for and level of the Conditional Adjustment Payment which was promised by the Howard Government but which they failed to get done.
The inter-departmental review of the ongoing need for and level of the CAP payment, to be completed by October this year, will draw on existing information and data and on public submissions which will be received for four weeks in July.
The review will examine:
- the extent to which the medium term financial assistance provided by the CAP has been effective in encouraging efficiency through improved management practices, including the effectiveness of the three conditions in achieving the objectives of the CAP; and
- the need for and level of any further medium term financial assistance to encourage providers to become more efficient through improved management practices.
