Cessation of aged care’s Pre-Entry Leave subsidy

The federal government’s decision to scrap the Pre-Entry Leave subsidy in residential care is a disappointing blow to the aged care sector, according to a peak industry body.

Adjunct Professor John Kelly, Aged & Community Services Australia chief executive, claims the decision, which was included in Mid-year Economic and Fiscal Outlook (MYEFO), goes against the concept of looking after consumers.

“Providers who wear the cost will have less money for care and services,” Professor Kelly says.

“It is not fair if the cost is passed to the consumer as the subsidy was introduced to bring a sense of orderliness to what is often a difficult and distressing time,” he adds.

The subsidy meant that families and consumers did not have to make an instant decision about care, according to Professor Kelly.

The federal government reduced the basic subsidy to providers in December last year to 30% of the full amount of basic subsidy.

“At the time, the government also removed the accommodation supplement, concessional resident supplement, charge exempt resident supplement, accommodation charge top up supplement, transitional supplement, transitional accommodation supplement and/or hardship supplement (whichever is applicable) on behalf of the care recipient for the period of pre-entry leave,” he says.

“The government should re-look at the reason the subsidy was introduced. It was so consumers were not rushed or forced into making a decision about care. It really will have a big impact. This is not the way to look after older Australians.”