Australian Government response to Senate Standing Committee on Finance and Public Administration Report: Residential and Community Aged Care in Australia

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The Australian Government welcomes the report of the Senate Standing Committee on Finance and Public Administration on Residential and Community Aged Care in Australia. The Government is committed to the long-term viability of Australia’s aged care sector and the protection of the nation’s frail and elderly. Through the Council of Australian Governments it has reformed roles and responsibilities within the federation to take full policy and funding responsibility for aged care. This will allow the Government to build a national aged care system to provide better support for older Australians. The reforms will also support the integration of the aged care system with Local Hospital Networks through the Government’s National Health and Hospitals Network.

Over the next four years, increased funding from the Australian Government will bring direct financial support for aged and community care providers who care for older Australians to a record level of $47.8 billion, including $10.8 billion in 2010-11.

The Australian Government will invest more than $900 million over the next four years to deliver:

• a national aged care system
• more highly qualified aged care workers;
• more aged care places;
• more health care services; and
• greater protections for older Australians receiving care.

This investment builds on:

• the Australian Government’s commitment to maintain the Conditional Adjustment Payment in the forward estimates – worth $2.3 billion over the next four years;
• the $15 million provided in the last budget to increase the viability supplement for rural and remote residential aged care providers; and
• the $728 million flowing to aged care providers as a result of the Australian Government’s pension reforms.

The Australian Government has also asked the Productivity Commission to conduct the most comprehensive inquiry into aged care for decades. The Commission is due to report by the end of June 2011. The recommendations of the Commission and the recommendations of the Henry Review of taxation, together with the recommendations contained in the Senate’s report, will provide vital input into future policy deliberations.

The Prime Minister has made it clear that further reform of the aged care sector will be a second term priority for the Gillard Government. Top of page

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