Governments ignore true cost of aged care
Neither federal nor state governments are doing enough to meet the growing needs of Australia’s ageing population, according to aged care body, Leading Age Services Australia (LASA) Victoria.
Trevor Carr, LASA Victoria chief executive, says the release of both the federal and Victorian state Budgets reveals a lack of investment in the sector.
Trevor Carr, LASA Victoria chief executive, says the release of both the federal and Victorian state Budgets reveals a lack of investment in the sector.
“Last week, the Andrews’ government invested no new money into Victorian aged care and this week, the Abbott government is providing only a nominal investment of $73 million into home care service delivery,” Mr Carr says.
“In the next 15 years, Victoria’s over 70 population will grow to 14% and well over one million people,” he adds.
Regional Victoria’s percentage of people aged over 70 years is also growing more quickly than the state.
Mr Carr describes the $73 million investment into home care service delivery as a “drop in the ocean” when you consider the investment required to meet service demand over the next 10 years.
The decision to abolish the payroll tax supplement announced in the 2014-15 federal Budget has stripped $653 million to 2016-17, out of aged care investment, and an unquantified amount into the future, Mr Carr claims.
“The removal of the payroll tax supplement is creating inequity in Australia’s aged care industry where, nationally, 63% of the sector are exempt,” he says.
“This is providing a disincentive for private aged care investment and is not providing competitive neutrality within the aged care sector.”
Mr Carr welcomes private market provision of accreditation, but says there is still not enough incentives in both the state and federal Budgets to encourage aged care investment.
“Victoria requires an estimated $9 billion of capital investment to provide more than 35,000 residential aged care places in the next 15 years,” he says.
“Governments’ capital investment into aged care over the past five years has been dismal with only $123 million invested; the 2015-16 state and federal Budgets continue to ignore the reality of the investment required to provide our seniors with the quality age care facilities they deserve.”
LASA Victoria plans to continue work with state and federal governments to highlight the needs of the aged care industry and promote good outcomes.
