On the evening of May 14th 2024, the Hon Dr Jim Chalmers MP handed down the Albanese Government’s budget strategy ‘for the here and now, and for the decades to come.’ The Treasurer framed the plan as a ‘responsible budget... framed in fraught and fragile global conditions’ which operates to address key pressures and manage uncertainties brought by increased costs of living and subdued economic growth.

The Budget confirms the delay of the introduction of the new Aged Care Act to 1 July 2025, however, delivers a continuing commitment of the Albanese Government to place the needs of older Australians ‘at the centre of aged care,’ and invest in the further augmented regulation and quality of care.

Acknowledging the ‘growing pressures’ in the NDIS landscape and the momentum of the recent National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024, the Budget also aims to ‘moderate’ expected NDIS expenditure growth by prioritising reform efforts towards ‘access, plans and budget settings, and quality and safety.’

We provide a high-level overview of the key take-outs for Human Services from the Albanese Government’s Budget speech, the Budget 2024-25 Papers and the National Cabinet’s media statements.

Aged care

• The Albanese Government has announced it will be providing $2.2 billion to support reforms in the aged care sector, including those recommended following the Royal Commission into Aged Care Quality and Safety. Over half of this will go towards implementing new technology and ‘digital systems’ to support both the enactment of the new Aged Care Act and ‘a contemporary IT system’. $11.8 million will be distributed over the next three years to facilitate the implementation of the new legislative framework, with the Government signalling a focus on ‘governance activities, program management and extension of the Aged Care Approvals Round.’
• Addressing the rising desire of ‘ageing in place,’ $531 million will be provided to support the provision of 24,000 home care packages in 2024-25, with a further $174.5 million invested in equipment and software to support the staged roll-out of the new Support at Home Program from 1 July 2025.
• Although largely reserving considerations of the sector’s funding model for its comprehensive response to the final report of the Aged Care Taskforce, the Government committed $4.1 million over the next three years for preliminary ICT preparation in configuring the new ‘Basic Care Tariffs’ in and a further $7.8 million to assist thin market providers in accommodating the new AN-ACC funding model
• The Government has given effect to its continuing commitment to support the Fair Work Value Case, with a further increase in funding to be provided by the Australian Government as part of the $65.6 million dedicated to ‘collecting more reliable data’ and improving ‘the outcomes for people receiving aged care services through existing aged care workforce programs’ over four years from 2024-25.
• A further $21.6 million will be provided for the Home Care Workforce Support Program for an additional three years to incentivise and support aged care workers in rural and remote regions.
• $10.8 million will be invested into the Palliative Aged Care Outcomes Program and the Program of Experience in the Palliative Approach Program to facilitate the continued provision of palliative care by aged care workers.
• In anticipation of the new regulatory scheme to be enforced under the new Aged Care Act, the Aged Care Quality and Safety Commission was a focus in the 2024-25 budget, with the Albanese Government investing close to $111 million to strengthen its ‘regulatory capability’.
• Funding in the amount of $30.4 million will continue to support the delivery of the Specialist Dementia Care Program.
• The Albanese Government aims to further support sustainability of cost-efficiency of the sector through redistribution of unspent funds originally provided under the Commonwealth Home Support Programme towards other sub-programs within the service catalogue.

Disability

• $468.7 million has been committed to ‘get the NDIS back on track’ in response to the recent proposed legislation, with fairness and sustainability centred at the forefront of the Government’s commitments.
• $20 million will foster preliminary consultation for co-designed reform of the NDIS architecture over the next two years, with a further $213.8 million operating to mitigate fraud and support the Government’s intention to transition to a ‘broader ecosystem of supports.’ The design and funding of foundational supports outside of the NDIS, jointly committed to by the National Cabinet, will operate to ‘restore the original intent’ of the regime to aid permanent and significant disability.
• $129.8 million will fund the institution of a NDIS Implementation Advisory Committee and NDIS Implementation Working Group, adopting the recommendations of the Independent Review into the NDIS, to oversee and coordinate strengthened governance arrangements.
• $45.5 million will fund the establishment of a NDIS Evidence Advisory Committee, as recommended by the Independent Review into the NDIS, which will independently advise on targeted funding of supports that are ‘beneficial, safe, evidence-based and cost effective.’
• $227.6 million will be invested into the establishment of a new disability employment program by 1 July 2025 to replace the ‘Disability Employment Services’ program, with volunteers and individuals with less than eight weekly hours of work capacity introduced into the regime. $23.3 million has been allocated to the creation of a ‘Disability Employment Centre of Excellence’ to support the new program by providing employer education and fostering greater and more sustainable vocational opportunities for participants.
• $5.3 million will be given to support the initial assessment of potential NDIS pricing function reforms through collaboration between the Independent Health and Aged Care Pricing Authority, the Department of Social Services and the NDIA.
• $160.7 million has been committed over four years to boost technological upgrade of the NDIS Quality and Safeguards Commission to support regulatory efforts and minimise fraud, with a further $83.9 million pledged to enhance ‘fraud detecting information technology systems’ of the NDIA.

Healthcare

$2.8 billion will be invested into ‘strengthening’ Medicare as part of the Albanese Government’s commitment to strengthen the healthcare system for all Australians. The response includes a significant focus in this financial year’s budget on the earlier discharge from hospital of older Australians. The Government has distributed funding in this space as follows:

• $610.4 million from 2024-2025 over four years will fund initiatives designed to address the adversities faced by long stay older patients in hospitals.
• $190 million from 2025-26 over three years will fund the reform of the Commonwealth’s Transition Care Programme to continue to offer older Australians up to 12 weeks of short-term care upon discharge from hospital.
• $56.8 million from 2023-24 over five years will fund the expansion of the Acute to Residential Care Transition Service dementia program for improved transition of older long stay hospital patients with a dementia diagnosis from hospital to residential aged care facilities.
• $24.9 million from 2024-25 over two years will fund the Comprehensive Palliative Care in Aged Care program to continue to develop the provision of palliative care in residential aged care facilities.
• Funding for earlier hospital discharge will form part of the $1.2 billion dedicated to ‘improving access to essential services, modernising Australia’s digital health infrastructure and ensuring the integrity and compliance of Medicare.’
• $631.1 million has also been committed to supporting the ongoing access of Australia to vaccines. As part of this, $0.9 million will fund the provision by pharmacists of free influenza and National Immunisation Program vaccines in both residential aged care homes and residential disability services.