Over 9,000 New Aged Care Places Allocated – But There is More to be Done
The 2011 Aged Care Approvals Round will provide older Australians with 9,657 new aged care places, including 7,933 residential care places and 1,724 community care places, worth an estimated $368 million a year.
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22 December 2011
Minister for Mental Health and Ageing, Mark Butler, today announced the results of the 2011 Aged Care Approvals Round (ACAR).
Older Australians will gain 9,657 new aged care places, including 7,933 residential care places and 1,724 community care places, worth an estimated $368 million a year.
In announcing the outcomes, Minister Butler noted that, of the more than 10,000 residential care places advertised across Australia, less than 8,000 have been allocated, reflecting the fact that many regions across the country were under-subscribed.
“While the allocation of more than 9,600 new aged care places across Australia is very welcome, this is the fourth ACAR round in a row in which residential care places have been underallocated. This means that not enough beds are being built today for the increasing number of older Australians tomorrow,” Mr Butler said.
“A number of regions across Australia were under-subscribed, and some regions received no applications for residential care places at all.”
In contrast, every community care place offered through the 2011 ACAR has been allocated, with the Department of Health and Ageing receiving applications for more than 24,000 community care places in response to the 1,698 community care places advertised.
“Applications for community care places far exceeded what was available, consistent with the preference of older Australians to remain living independently and in their own homes for as long possible,” Mr Butler said.
“The result of this year’s ACAR highlights the importance of the Gillard Government’s aged care reforms.”
“It is clear to me that there are continuing pressures on our aged care system and that they are only going to become more acute as Australia’s population continues to age. People aged 80 years and over currently make up around 4 per cent of the population, but this proportion is expected to increase to 8 per cent by 2051.
“Structural reform is needed to deliver a sustainable aged care system for the future.
“That is why the Gillard Government asked the Productivity Commission to conduct its recently completed inquiry into aged care.”
The Productivity Commission issued its Final Report, Caring for Older Australians, on 8 August 2011. The report includes proposals for extensive reform of Australia’s aged care system and presents an integrated reform package.
In developing its response to the Commission’s recommendations, the Government will be guided by four overarching principles:
- First, every older Australian has earned the right to be able to access quality care and support that is appropriate to their needs, when they need it;
- Secondly, older Australians deserve greater choice and control over their care arrangements than the system currently provides;
- Thirdly, funding arrangements for aged care need to be sustainable and fair, both for older Australians and for the broader community; and
- And finally, older Australians deserve to receive quality care from an appropriately skilled workforce.
The ACAR is the annual process through which new Australian Government-funded aged care places, capital grants and zero real interest loans are allocated. The 2011 Extra Service Approvals Round was also run in conjunction with the 2011 ACAR.
Highlights For 2011 ACAR:
- 7,933 new residential aged care places worth an estimated $333.8 million in annual recurrent funding;
- 1,724 new community aged care places worth an estimated $34.2 million in annual recurrent funding;
- Offers of $150 million in zero real interest loans which, through the provision of low cost finance, will assist providers to build aged care services in areas of need;
- $58.5 million in capital grants to assist providers with capital works including a $14.7 million grant to Mission Australia for the construction of a 60 place facility for older homeless people in Orange, NSW;
- Approval of Extra Service status in relation to 4,354 residential care places, providing more choice for consumers.
Further Information
More information on the 2011 Aged Care Approvals Round, zero real interest loans, capital grants and the results of the Extra Service Round are available at: www.health.gov.au/acar2011 (Aged Care Approvals Round) and www.health.gov.au/ess (Extra Service Approvals Round).
Decisions on aged care places, capital grants, loans, and Extra Service status are made independently by the Department of Health and Ageing. The process aims to allocate places to aged care providers that best meet the identified needs of local communities.
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