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Federal Government budget announcements for the aged care sector – what you need to know

07 June 2021

Heartland Bank News

On Tuesday 11th May 2021, the Federal Government announced their budget for 2021-2022.

Included in their announcement were some of the key initiatives for the aged care sector (some being in response to the Aged Care Royal Commission report released in March 2021 that recommended a number of improvements to aged care to increase the quality of service).

The initiatives included $17.7b being allocated over a 5-year term to reform the aged care system.

The $17.7b allocation includes:

  • $6.5b for an additional 80,000 Home Care Packages.
  • $3.9b to increase front line care for senior Australians living in residential aged care.
  • $3.2b to support providers to deliver better care and services through a new Government Basic Daily Fee supplement and continue increases in the homeless and viability supplements.
  • $630.2m to improve service delivery for vulnerable groups of senior Australians, including First Nations people, people who are experiencing homelessness or at risk, and people living in rural, regional and remote Australia.
  • $365.7m to better support senior Australians transitioning between aged and health care settings, and to improve medication management in residential care settings.
  • $231.9m to strengthen the Aged Care Quality and Safety Commission with additional resources.
  • $135.6m to provide additional financial support for registered nurses working for the same aged care provider over a 12-month period, and those working in rural and remote areas, or holding additional qualifications or training responsibilities.
  • $49.4m to enhance training for aged care workers, particularly in dementia care.
  • $21.1m to strengthen governance arrangements, including establishing a National Aged Care Advisory Council, Council of Elders and an Inspector-General of Aged Care.
  • $13.4m to create a local network of Department of Health staff to ensure national planning and policy is informed by local needs and build provider capacity.

What does this mean for Australians?

With a higher number of upskilled aged care workers, older Australians should see an overall improved quality of service received, and also have more control over what they need to receive the best care.

The aim is for aged care funding to become fairer and more transparent, providing for better outcomes overall for senior Australians and their families.

Fund aged care with a Heartland Reverse Mortgage

Did you know that Heartland’s Aged Care Option is one of the few specialist aged care reverse mortgage loan products available in Australia? If you or an elderly family member has limited available cash to pay for aged care fees, Heartland’s Aged Care Option could be an alternative to selling the home. Depending on the age of the borrower you could release as much as 50% of the home value to pay for upfront or ongoing costs. Get in touch to find out more, we are here to help you.

Information sourced from: https://www.health.gov.au/news/budget-delivers-177-b-for-once-in-a-generation-change-to-aged-care-in-australia

Information provided is accurate as of 7 June 2021 and maty change from time to time