Federal Budget update regarding Aged Care
No news is good news. For individuals accessing aged care, that might be the view of this year’s Federal Budget.
People accessing aged care services have avoided an increase in aged care fees, despite the government needing to find an additional $11.3 billion over the next four years to fund the 15% increase in award wages for 250,000 aged care workers.
However, with a new Aged Care Act planned to be introduced from 1 July 2024, any changes in client contributions for care services may have just been deferred to coincide with the commencement of the new Act. We wait to see what the government announces over the next year.
Key updates in this year's budget relevant to aged care include:
The Government has committed to funding the 15% award wage increase decided by the Fair Work Commission for many workers within the aged care industry. This increase will be funded through Government subsidies. Care providers will be monitored to ensure the additional revenue is passed onto aged care workers.
More Home Care Packages will become available, with a further 9,500 packages being made available in 2023-24. This may continue to help reduce waiting times for care at home.
Plans to simplify home care into a new single Support at Home program (combining the Commonwealth Home Support Program (CHSP) and Home Care Packages (HCP)) has been deferred a further year until 1 July 2025.
The design of the new regulatory framework for aged care continues, with a new Aged Care Act expected to roll out from 1 July 2024. The new Act will take a person-centred and rights-based approach focusing on aged care recipients rather than service providers.
Understanding all of this information and how it may or may not impact your financial decisions relating to your later life planning can be difficult. How are you supposed to make sense of it all?
The answer is Aged Care Personal Advice™. The value of aged care advice comes from working with someone who has the experience and expertise to make it easier for you – taking away the worry and uncertainty. We have the specialist skills and knowledge to guide you through the process and help you make the right financial decisions for your particular circumstances.
Contact us today if you'd like to discuss your aged care planning needs, or the needs of an older parent.
Disclaimer: The information in this article is general and does not take into account your particular circumstances. We recommend specific financial, tax and/or legal advice be sought before any action is taken. Aged Care Personal Advice is a registered business name of Aged Care Steps Pty Limited ABN 42 156 656 843, AFSL 486723.