Australian Government response to Senate Standing Committee on Finance and Public Administration Report: Residential and Community Aged Care in Australia
Response to Recomendations 11 to 20
Recommendation 11
The committee recommends that the Department of Health and Ageing implement measures, including additional funding, to assist smaller providers to meet the requirements of the compliance framework.Response
The Australian Government supports in principle Recommendation 11 of the Committee.
A viability supplement is paid to eligible residential aged care providers, including smaller providers, in regional, rural and remote areas to assist with the additional costs of providing care in these areas. In the 2009-10 Budget, the Australian Government provided an additional $14.8 million for this supplement, over two years, to increase the average level of the viability supplement for eligible aged care homes by 40 per cent. In the 2010-11 Budget, the Australian Government provided an additional $10.1 million for this supplement, over four years, to increase the average level of the viability supplement for eligible providers of community care packages by 40 per cent.
The Australian Government also subsidises the costs of accreditation for small aged care homes.
Recommendation 12
The committee recommends that the issue of professional nursing and other aged care staffing requirements be considered in the overarching review of the aged care sector.Response
The Australian Government supports in principle Recommendation 12 of the Committee.
The Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will examine the future workforce requirements of the aged care sector. The Commission is due to report by the end of June 2011.
The Australian Government has also established an Aged Care Workforce Committee to assist the Department of Health and Ageing in formulating advice to the Minister on how best to meet Australian Government policy objectives in key areas relating to the aged care workforce.
The Australian Government will commit more than $310 million over the next four years to support the aged care workforce and to support aged care workers while they undertake education and training.
New measures in the 2010-11 Budget worth $103 million over four years will enable The Australian Government to:
- Support and encourage aged care workers to upskill by introducing an Aged Care Education and Training Incentive Payments scheme, which will provide payments of up to $5,000 to support up to 50,000 aged care workers over the next four years while they undertake training and further education ($59.9 million).
- Provide an additional 600 fully funded enrolled nurse training places and 300 undergraduate nursing scholarships ($21 million).
- Build on its reforms that recognise the important role of nurse practitioners, through an $18.7 million investment to establish different models of practice to utilise nurse practitioners in aged care ($18.7 million).
- Work to document a national scope of practice and competency framework for personal carer workers and assistants in nursing ($3.7 million).
- The Australian Government will also shift the focus of its existing workforce programs ($211.2 million) to improve clinical care. This will include:
- Introducing Teaching Nursing Homes to strengthen the links between the aged care sector, research and training institutions and support the sector’s engagement with Local Hospital Networks.
- For the first time, providing financial incentives for aged care providers to make available up to 400 nursing graduate placements to ensure new graduates benefit from experienced clinical support and mentoring.
- Up to 640 clinical training placements to enable improved clinical training and supervision in the sector.
- 40 aged care nurse practitioner scholarships to build on the Australian Government’s MBS and PBS reforms for nurse practitioners.
- Ongoing provision of undergraduate and postgraduate training and scholarships to grow the nursing workforce (2,520 places )
- Support for up to 2,600 enrolled nurse training places.
- Continuing to support the skill base of personal care workers through the provision of 18,600 Certificate III and IV qualifications and 7,000 short courses.
In addition, through the National Health and Hospitals Network — Workforce — research into aged care staffing levels measure in the 2010-11 Budget, the Australian Government will provide $0.5 million over two years to conduct research into aged care staffing levels. Research will examine the relationship between staffing and the quality of care, supervision and support for residents with particular types of care needs.
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Recommendation 13
The committee recommends that the Department of Health and Ageing, in association with the suggested taskforce, review aged care staffing challenges and identify methods of address, with particular focus on staffing requirements in rural and remote areas.Response
The Australian Government supports in principle Recommendation 13 of the Committee.
The Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will examine the future workforce requirements of the aged care sector. The Commission is due to report by the end of June 2011.
The Australian Government has also established an Aged Care Workforce Committee to assist the Department of Health and Ageing in formulating advice to the Minister on how best to meet Australian Government policy objectives in key areas relating to the aged care workforce.
In addition, through the National Health and Hospitals Network — Workforce — research into aged care staffing levels measure in the 2010-11 Budget, the Australian Government will provide $0.5 million over two years to conduct research into aged care staffing levels. Research will examine the relationship between staffing and the quality of care, supervision and support for residents with particular types of care needs.
Recommendation 14
The committee recommends that the taskforce undertake a review of the indexation formula used for the aged care sector in order to identify its adequacy in relation to costs faced by the sector and to identify modifications to the formula if required.The committee further recommends that consideration be given to an independent mechanism to continually assess the indexation formula.
Response
The Australian Government notes Recommendation 14 of the Committee.
The Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission has been asked to examine options that are financially sustainable for Government and individuals with appropriate levels of private contributions, with transparent financing for services, that reflect the cost of care and provide sufficient revenue to meet quality standards, provide an appropriately skilled and adequately remunerated workforce, and earn a return that will attract the investment, including capital investment, needed to meet future demand.
Recommendation 15
The committee recommends that the all-encompassing review specifically consider the provision of aged care services in rural and remote areas and the effectiveness of the current viability supplement to support service provision.Response
The Australian Government supports in principle Recommendation 15 of the Committee.
In the 2009-10 Budget, the Australian Government provided an additional $14.8 million for this supplement, over two years, to increase the average level of the viability supplement for eligible aged care homes by 40 per cent. In the 2010-11 Budget, the Australian Government provided an additional $10.1 million for this supplement, over four years, to increase the average level of the viability supplement for eligible providers of community care packages by 40 per cent.
The Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will address the interests of special needs groups, including people living in rural and remote areas. The Commission is due to report by the end of June 2011.
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Recommendation 16
The committee recommends that the Commonwealth and Norfolk Island Government initiate discussions in relation to a proposal to develop homecare services on Norfolk Island.Response
The Australian Government supports in principle Recommendation 16 of the Committee.
The Australian Government is committed to working with the Norfolk Island Government to explore the possible need for further reforms to improve services available to people on Norfolk Island.
Recommendation 17
The committee recommends that the all-encompassing review specifically consider and address the expectations and needs of persons from non-English speaking backgrounds.Response
The Australian Government supports in principle Recommendation 17 of the Committee.
The Australian Government has made an election commitment to strengthen support for the delivery of culturally appropriate care to older people from culturally and linguistically diverse backgrounds living in residential aged care facilities. The Government will invest $5 million to provide improved access to translation services and cultural awareness training for aged care staff.
The Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will address the interests of special needs groups, including culturally and linguistically diverse communities. The Commission is due to report by the end of June 2011.
The Australian Government’s Ageing Consultative Committee has also identified this issue as one requiring its further attention.
Recommendation 18
The committee recommends that the Department of Health and Ageing conduct a review into the implications of 'elderly homeless' incorporated as a special needs category under the Aged Care Act 1997.Response
The Australian Government supports in principle Recommendation 18 of the Committee.
On 20 May 2009, the then Minister for Ageing, the Hon Justine Elliot, announced the amendment of the Aged Care Act 1997 to include homeless older people as a ‘special needs’ group to formally recognise their unique requirements. This was one of several measures to improve the care and support for older homeless Australians announced in response to the December 2008 White Paper on Homelessness, The Road Home.
Recommendation 19
The committee recommends that the suggested all-encompassing aged care review specifically consider and address the expectations and needs of the homeless and other socio-economically disadvantaged persons.Response
The Australian Government supports in principle Recommendation 19 of the Committee.
On 20 May 2009, the then Minister for Ageing, the Hon Justine Elliot, announced the amendment of the Aged Care Act 1997 to include homeless older people as a ‘special needs’ group to formally recognise their unique requirements. This was one of several measures to improve the care and support for older homeless Australians announced in response to the December 2008 White Paper on Homelessness, The Road Home.
The Australian Government also committed to a continuation of the Assistance with Care and Housing for the Aged program and to make capital grants available for at least one aged care home for older people who are homeless or at risk of being homeless each year for the next four years.
In addition, the Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will address the interests of special needs groups, including those who are homeless or at risk of being homeless. The Commission is due to report by the end of June 2011.
Recommendation 20
The committee recommends that the suggested all-encompassing aged care review specifically consider and address the expectations and needs of elderly Indigenous Australians and their communities.Response
The Australian Government supports in principle Recommendation 20 of the Committee.
On 11 November 2008, the then Minister for Ageing, the Hon Justine Elliot, detailed the next stage of the Australian Government’s $46 million Indigenous Aged Care Plan. The plan is about taking practical and commonsense measures to improve the care and welfare of older indigenous Australians. The Australian Government will work with Indigenous communities to improve their facilities and care, and find the right balance between cultural sensitivity and ensuring the health and welfare of older and frail Indigenous people.
In addition, the Australian Government has commissioned the Productivity Commission to conduct a public inquiry into Australia’s aged care needs over the coming decades. In undertaking the inquiry, the Commission will develop options for further structural reform of the aged care system so it can meet the challenges facing it in coming decades. In particular, the Commission will address the interests of special needs groups, including Aboriginal and Torres Strait Islander people. The Commission is due to report by the end of June 2011. Top of Page