A long winter
Last Thursday was the winter solstice, the shortest day and longest night of the year. It represents a turning point, when the days begin to get longer and the mornings start to get lighter.
It has been a long winter for older Australians and their families, aged care workers and the dedicated providers who deliver services in partnership with government.
Earlier this month, the Minister for Aged Care, Hon Anika Wells, addressed the National Press Club in Canberra. She acknowledged that in 2017, $2.5 billion was cut from the sector, and that now, more than half of all aged care providers are making a loss. She also noted that the previous method of indexation of funding for the sector was based on an outdated factor that didn’t recognise the actual costs of providing services.
These are words that people involved in the aged care sector have waited years to hear.
The Government’s decision to agree to fund the 15 per cent increase to the minimum award rates for direct care workers is extremely welcome, as is the additional money for the new funding instrument. Better pay and increased hours are long overdue.
However, the biggest challenge is looming. It is a question that the Royal Commission failed to find consensus on. That is, how to make aged care equitable and sustainable into the future.
The significant increases announced in this year’s budget were almost entirely directed to funding the Fair Work Commission decision for aged care workers, with annual indexation accounting for only 2.6%.
With care minute targets becoming mandatory from October this year, it is clear that the current levels of funding will not cover the additional cost of meeting those targets, plunging providers further into deficit.
On 7 June, Minister Wells announced the formation of an Aged Care Taskforce, with members experienced in economics, finance, public policy, ageing and aged care, First Nations, consumer advocacy, and provider advocacy.
The taskforce will provide government with advice on funding arrangements for aged care to ensure that the aged care system is fair and equitable for all Australians.
They have only until 31 December 2023, just nine days after the summer solstice, to find the solution to the sustainability problem.
Minister Wells’ ambition for the sector is to be applauded. We are all looking forward to brighter days ahead.
Opinion piece by Darren Birbeck
Chief Executive Officer
Resthaven Incorporated