Aged care - Securing the future of aged care for Australians – paying full subsidy to former State and Territory Government aged care places

All non-government aged care providers – including those running facilities that were formerly owned by State or Territory governments – will now receive the same amount of Australian Government subsidy for their residential care places.

Page last updated: 08 May 2007

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Why is this important?

  • Historically the Australian Government has made lower payments to some aged care places that are provided by state and territory governments. This has continued even when these places were transferred to non-government hands.
  • This measure will ensure that all non-government providers including those now running ex-state and territory owned places receive the same levels of Australian Government subsidy for residential aged care places.

Who will benefit?

  • Non-government aged care providers who have acquired aged care places from state governments will benefit. Around 1,400 places now in non-government hands will be eligible to receive the full Australian Government subsidy.

What funding is the Government committing to the initiative?

  • The Government has committed $25.5 million over the next five years from 2006-07.

What have we done in the past?

  • Recognising that state government residential aged care services have access to their own source of capital funding, a reduced Australian Government subsidy has been paid for some places operated by state governments.
  • This reduced subsidy continued to be attached to the places even when the places were transferred to non-government providers.
  • The Australian Government announced in the 2004-05 Budget that it would provide an additional $2.2 billion over five years for aged care. Since then the Government has announced the provision of a further $1.6 billion over five years as part of the new aged care funding package called Securing the Future of Aged Care for Australians.

When will the initiative conclude?

  • The measure is ongoing.

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