Here’s exactly what the Voice could have bought older Australians

Key points:

• The Australian Electoral Commission has estimated the cost of the referendum to be approximately $450 million

• The Federal Government allocated $364 million dollars in the most recent Budget to deliver the referendum

• Australians overwhelmingly voted against the proposal to alter the Constitution and establish an Aboriginal and Torres Strait Islander Voice to Parliament

On October 14, 2023, the majority of Australian voters stated that they were against the proposed referendum to alter the Constitution, which would grant Aboriginal and Torres Strait Islanders a ‘Voice’ to Parliament that would provide recommendations on future policy.

The Voice results found that voters were overwhelmingly against the proposed amendment, which is currently tallied at a 60 – 40 margin, siding with the ‘No’ vote.

The Australian Electoral Commission or AEC, determined that the cost of the referendum stood at approximately $450 million dollars, with the Federal Government delivering roughly $364 million dollars towards the referendum itself. External funding for both the ‘Yes’ and ‘No’ campaigns was donated by private interest groups and figures.

Among ‘Yes’ voters, the resounding majority had stifled a long-standing call to recognise First Nations people in the Constitution and deliver a bastion of support for further policy amendments and proposals.

However, some have addressed the cost of the Voice vote, which is the 45th referendum in Australian history since Federation in 1901, with Independent Senator Lidia Thorpe claiming that the decision was a ‘waste of money’ and a ‘bad idea.’

The Federal Budget, which allocated hundreds of millions of dollars toward the referendum had allocated far less to deliver the Aged Care Act, which comes into effect July 1, 2024.

The Budget set aside $81.9 million dollars over the course of three years, from 2023 – ‘24 onward, to support the development and implementation of the new Act, in addition to funding for the discovery and design phases of the necessary information and computer technology system changes.

Similarly, $72.3 million was allocated in the 2023 – ‘24 Budget for continued work on the creation and roll-out of a new aged care regulatory framework that will support the new Act.

The Budget had also outlined the delay of the Support at Home program that will replace the Home Care Packages program, along with the Commonwealth home support programme, until July 1, 2025.

The referendum cost $364.6 million dollars — for a similar cost, the Budget was able to set aside the following for the aged care industry:

• $139.9 million to improve the Star rating system
• $166.8 million in 2023 – ‘24 for 9,500 additional Home Care Packages
• $12.9 million to develop, monitor and enforce new food and nutritional standards
• $15.7 million to establish the long anticipated single aged care assessment system
• $12.9 million for the enhanced functions of the Aged Care Quality and Safety Commission in its new role as the independent financial and prudential regulator
• $1.7 million for 2023 – ‘24 to appoint an interim First Nations Aged Care Commissioner
• $0.7 million in 2023 – ‘24 to establish the Aged Care Sustainability Taskforce, which will provide advice to the Government on the creation and maintenance of a high-quality and sustainable aged care system
• $0.1 million for an Independent Implementation Readiness Assessment of the aged care reforms

When factoring in external sources of funding, the $450 million dollars could have been allocated to the majority of aged care changes in the latest budget — including the $98.7 million for a new Market Adjustment Program to improve the viability of the residential aged care sector.

The referendum and its outcome have significant implications for taxpayers who are feeling the brunt of Australia’s cost of living crisis, which currently impacts the care, health and shelter of older people.

Older First Nations people comprise 1.5 percent of the total Australian population aged 50 and over, along with making up 16 percent of the total Indigenous population.

Data from the Australian Institute of Health and Welfare found that there was a notable difference in the age profile of First Nations people using aged care services, compared with non-Indigenous Australians.

While part of the reason is the broader age range at which First Nations Australians can access aged care services, it also reflects the lower life expectancy of First Nations Australians and the younger age at which services are needed. 

Do you agree or disagree with the outcome of the referendum or the referendum itself? Let the team at Talking Aged Care know your thoughts and subscribe to the newsletter for everything you need to know about aged care in Australia!