Treasurer Josh Frydenberg reflected on the economic impact of COVID-19, which has resulted in the most severe global economic crisis since the Great Depression.

“In 2020 Australians have been tested like never before.”

Treasurer Josh Frydenberg

The aged care budget is set to increase from $23.9B in 2020-21 to $27.1B by 2023-24, however, the announcements made last night will do little to assist the thousands of ageing Australians waiting to access a home care package. The Treasurer committed to deliver a comprehensive response, following the final report of the Aged Care Royal Commission in February 2021, which will include 'significant additional investment' in the aged care sector.

Here are the key take-outs:

Home Care and CHSP

• $1.6B over four years for an additional 23,000 home care packages, taking the total number of packages to 185,000 by 2021- more than three times the number of packages on offer than when the Liberal-National Coalition came to government in 2013
• an increase of home care packages across all levels: 5,000 level 1 packages; 8,000 at level 2 and level 3 and 2,000 at level 4

Residential aged care

• $245M to extend the COVID-19 Supporting Resident Care Supplement, supporting providers to meet the additional costs of responding to COVID-19, including infection control training
• $205M for the Workforce Retention Bonus
• $103M to extend the Aged Care COVID-19 Preparedness Measure, supporting providers experiencing a COVID-19 outbreak
• $92M increase to the Supporting Aged Care Workers in COVID-19 Grant Opportunity for aged care providers in designated COVID-19 hotspots
• $29.8M to support the Serious Incident Response Scheme
• $35.6M for continuation of the Business Improvement Fund to support residential aged care facilities experiencing financial difficulty
• further investment to improve the skills of the aged care workforce and provide additional dementia training and support.

Disability

• $3.9B in NDIS funding to provide 'life changing support' to 400,000 people living with disability
• an additional $798M over four years to the National Disability Insurance Agency and NDIS Quality and Safeguards Commission
• $10.6M to establish a network of care co-ordinators to assist younger people in residential aged care seek 'more age-appropriate accommodation and supports' with the aim that no young person will be living in aged care by 2025.

Healthcare

• $1.1B for the National Partnership Agreement on COVID-19 Response – providing further funding for states and territories in managing the public health response to COVID-19 and extending the COVID-19 viability guarantee for eligible private hospitals to supplement public hospital capacity, including workforce, beds and equipment
• $711M for temporary Medicare Benefits Schedule pathology items that facilitate the detection of COVID-19, including testing for asymptomatic aged care workers
• $170M for dedicated respiratory clinics to manage and diagnose COVID-19 cases, to alleviate the pressure on hospitals 
• $111M for the extension of temporary COVID-19 telehealth services
• Mental health and suicide prevention designated a 'national priority' with the number of Medicare funded mental health services set to double through the Better Access Initiative. The Treasurer flagged further announcements in coming weeks, with the release of the Productivity Commission's Mental Health final report and the interim report into suicide prevention.

Whilst the announcement of additional home care packages has been welcomed by many in the sector, as the Treasurer himself has conceded, 'we know there is still more to be done'. The aged care peak bodies broadly regard the Budget measures to be a good start, but note there is still a long way to go. In the meantime, the sector will continue to await the government's response to the Royal Commission's final report in the hope of structural reform that goes beyond simply change at the margins.

If you have any queries arising out of this update, please do not hesitate to get in touch.