Insufficient subsidy escalation figure: ACCPA
Aged care industry body ACCPA is calling for an urgent explanation from the Federal Government following a ‘hugely disappointing announcement’ that government grants to providers to care for and support older Australians will not will only increase by 1.7% in 2022-2023.
ACCPA Acting CEO Paul Sadler said the announcement is bad news for aged care providers who have overstretched their financial and organizational limits as they continued to provide care and a support during a global pandemic over the past two years.
“This figure is clearly insufficient, especially since we know that two-thirds of aged care facilities are currently operating at a deficit,” Sadler said.
“We have had positive engagement with the new government on the issues facing the sector, and the Prime Minister has named the aged care repair as [a] key priority, so we are perplexed by this news.
“We understand that the indexation figure was part of the budget prepared by the previous government, so we look forward to hearing the new government’s plan to address this issue in line with its commitment to implement the recommendations of the Royal Commission.
“The gap between escalation and cost increases is huge – with inflation at 5.1%, awarded salaries for most employee classifications increasing by 4.6%, plus an increase of 0.5 pension guarantee.
“This year’s gap adds to the gap from previous years and is further exacerbated by price changes due to come into effect in home care from July 1 and the ongoing costs of COVID-19.
“The inadequacy of escalation for elderly care is further illustrated by the fact that NDIS grants have been increased by 9% with an additional supplement to provider funding for COVID-19 costs.”