Is this a Budget with ‘heart’?

Council on the Ageing chief executive, Ian Yates, is not surprised the federal government delivered on its commitment to aged care reform; however, he would have liked to see measures “go further”, as the Budget 2012-13 was announced last night. “Nevertheless, it is a significant start for the aged care sector,” he says.

“Nevertheless, it is a significant start for the aged care sector; particularly in the government’s efforts in kick-starting the commitment to increased wages in the sector,” Mr Yates tells DPS News, adding he was most pleased to see aged care reform occurring in a “financially difficult” year.

The federal government has pumped just over $800 million of new money into aged care and dental as the centrepieces of the health budget. Labor leaked most of its spending initiatives in the weeks before the federal budget last night (Tuesday, 8 May 2012).

Pictured is Treasurer Wayne Swan revealing the federal government’s Budget 2012-13.

The aged care package, announced last month, is being billed as a $3.7 billion initiative. The budget papers reveal most of the new spending in aged care is redirected funding from existing aged-care programs, with just $577 million new commonwealth money and $561m of funding for the package will come from the elderly people receiving the care as a result of new means testing arrangements.

The aged-care reform package will see 40,000 extra in-home care places offered, increase government aged care accommodation subsidies for aged care from $32 to $50 a day and see a means test increase the amount some people pay for their care.

Key funding initiatives announced:

$26 million employment program to help eligible job seekers aged 55 years and over find work. Program will provide job preparation assistance and up to $500 per participant for items and services they need to prepare for work.
$10 million to fund $1,000 jobs bonuses for employers who recruit and retain a mature age job seeker for three months.
$880 million over five years for home care packages for older Australians.
$660 million over five years for residential aged care.
More than $700 million for specific aged care services, including palliative care, and dementia care.

Superannuation:

Historic step of boosting the superannuation guarantee from 9% to 12%, to provide a more secure retirement for 8.4 million Australians.
From 1 July 2012, workers with income up to $37,000 will receive a boost of up to $500 to their superannuation savings.
Reduction of higher tax concession for contributions of very high income earners. From 1 July 2012, individuals with income greater than $300,000 will have the tax concession on their contributions reduced from 30% to 15% (excluding the Medicare levy).

Aged and Community Services Australia (ACSA) welcomes the budget 2012-13, stating while it did not contain any “unexpected surprises” for the aged care sector, it did confirm the disability, dental and aged care measures already annoucned on 20 April in the pre-budget release of the Living Longer, Living Better aged care reform package.

“ACSA was particualrly pleased with the emphasis in the Living Longer, Living Better reform package on supporting people in their own homes and greater equity in the way people fund their aged care support and accommodation, while ensuring access by those with lesser means,” Professor John Kelly, ACSA chief executive, says.

“We remain disappointed, however, that the government’s aged care reform package did not, at least, give in principle support for an entitlement to aged care based on assessed need fo rending the current rationing of services. These are essential if older people and their families are to have access to care and support when they need it.”

ACSA president, Rob Hankins, adds the challenge for the sector now is to “keep the government on track”.

“We need to work with it on the detail and make sure the reforms deliver a better deal for older Australians,” he says.

UnitingCare Australia says last night’s outcome is “fiscally responsible and fair overall”.

National director, Lin Hatfield Dodds, states the investment in aged care reform, rolling out the National Disability Insurance Scheme and better access to dental services for low income and disadvantaged Australians were particularly welcomed initiatives.

Louise Tarrant, national secretary of United Voice says overall the measures announced will provide “real help” to workers and their families.

“This is a budget with real heart and is historic in its commitment to major aged care reform. In particular, United Voice members welcome the Labor Government’s commitment to addressing critical workforce issues as the centrepiece of reform.

“The $1.6b package to lift wages and provide training is welcome acknowledgement of the central role of workers in delivering quality aged care. This is a relief for nearly 300,000 workers and the families who rely on their care,” she says.

However, General Practice Network (AGPN) chair, Dr Emil Djakic, has lashed out at the federal government, claiming the general practice and primary health care sector has been given the “poor cousin” treatment as the budget “limited the potential” for developing Australia’s Medicare Local program.

“AGPN welcomes the community care slant that’s been given to the aged care reforms, but [last night] was a missed opportunity for primary health care. We need the same commitment to community-based care for health programs,” Dr Djakic says.

“In light of the Government’s commitment to deliver a surplus, cutbacks were definitely on the cards tonight and health was not spared.”

Do you believe enough funding was given to the aged care sector? Share your thoughts on the federal budget 2012-13 by commenting in the box below.