Post by Banjo on May 14, 2014 9:22:29 GMT 7
Mixed emotions in Budget response
Peak aged care bodies have claimed the federal Budget 2014 is “unlikely” to support the aged and community care industry to meet the needs of older Australians, after the Coalition’s first Budget which was delivered last night.
Leading Age Services Australia (LASA), a body for age service providers, alleges the measures announced last night will see many aged care providers bearing a disproportionate burden of ‘fixing the budget’, via the removal of the aged care payroll tax supplement.
Patrick Reid, LASA chief executive, says the $653 million cut (over four years) will directly erode capacity for providers to deliver frontline care services to older Australians.
“It is of considerable concern that the government has implemented this measure without consulting the industry regarding what we understand to be a significant impact,” Mr Reid says.
“While Treasurer Hockey says it is ‘now our turn to contribute, our turn to build’, as potentially the highest growth industry aged care providers say now is not the time to compromise its capacity to serve Australia’s most vulnerable.”
Despite this, LASA welcomes the announcement of the redirection of the $1.5 billion Workforce Supplement. The Supplement will now be allocated back into care via residential, homecare and relevant community programs.”
Another peak body for the industry, Aged & Community Services Australia (ACSA) also welcomes the announcement of retaining the Workforce Supplement, which it says funding will be fairly distributed rather than available only to those providers who had measures in place to access it under previous legislation.
Adjunct Professor John Kelly, ACSA chief executive, claims redirecting the funding to a 2.4% ongoing increase in aged care subsidies is welcome news in a Budget that has generally quarantined aged care from funding cuts and will help provide stability for the sector.
“Tying it to industrial arrangements meant workers employed by smaller providers were not able to tap into the funds.”
However, Adjunct Professor Kelly expresses disappointment with the cessation of the Housing Help for Seniors Program, removing $173 million over five years.
"Of real concern, however, is the reduction in real annual growth in the Home Support Programme to 3.5% from a level of 6% from 1 July 2018 and we will be taking this up with the government,” he says.
Adjunct Professor Kelly warns there are many challenges ahead which concern how aged care providers will provide consumer choice and fund the sector in a sustainable manner into the future.
The federal government will eliminate or cut a range of entitlements for older Australians, in what Treasurer Joe Hockey says is an attempt to make pensions "affordable and sustainable for decades to come".
Mr Hockey confirms that from 2017, pension payments will grow more slowly.
From September 2017 onwards, the age pension will no longer grow in line with average male weekly earnings — instead it will be indexed twice a year against inflation.
Kasy Chambers, Anglicare Australia executive director, describes this year’s Budget as “backward”.
“The government set the scene for a tough budget that really looked to the future, but many of the cuts to welfare and services are a return to the past,” Ms Chambers says.
It’s not only aged care that has taken a hit, with Ms Chambers adding that requiring every patient to pay to see a doctor will not stop those who overuse the system; it will instead discourage those who need to take their health more seriously.
“Unfortunately the government chose to reinforce too many of these inequities, rather than to take them on. It’s a budget without hope – leaving many vulnerable Australians behind.”
BRIEF BUDGET BREAKDOWN
AGED CARE
$652 million has been saved over the next four years by scrapping Payroll Tax Supplement payments to eligible aged care providers from 1 January 2015.
Cessation of the Housing Help for Seniors Program, removing $173 million over five years.
The government will save $1.7 billion over six years from 1 July 2018 by slowing the growth in the Commonwealth Home Support Program.
HEALTH
The government will save $1.7 billion over five years by pausing the Medicare benefits schedule for two years from this July.
From July 2015, the government will introduce a $7 co-payment for visits to the GP and some screening services.
Australians will also pay an extra $5 towards the cost of each Pharmaceutical Benefits Scheme prescription from July 2015. Concession card holders will pay an extra 80 cents.
OLDER AUSTRALIANS
Pension age lifted to 70 by 2035, affecting Australians born after 1958.
Pensioners will be affected by a $7 co-payment to go see the GP. This will be waived after 10 visits per year for concession card holders.
The Seniors Health Card will be harder to qualify for, with the untaxed superannuation of new applicants now counting toward the income test.
The Mature Age Worker Tax Offset will be abolished, saving $750 million, although a new scheme, entitled Restart, will encourage companies to hire older workers by offering bonuses of up to $10,000 for the hiring of over 50s.
www.agedcareguide.com.au/news/2014/05/14/mixed-emotions-in-budget-response/?utm_medium=email&utm_campaign=DPS%20News%20-%208%20-%2014%20May%202014&utm_content=DPS%20News%20-%208%20-%2014%20May%202014%20CID_db0960dfb0ead77674f2bd229acb60cb&utm_source=email&utm_term=MixedemotionsinBudgetresponse
Peak aged care bodies have claimed the federal Budget 2014 is “unlikely” to support the aged and community care industry to meet the needs of older Australians, after the Coalition’s first Budget which was delivered last night.
Leading Age Services Australia (LASA), a body for age service providers, alleges the measures announced last night will see many aged care providers bearing a disproportionate burden of ‘fixing the budget’, via the removal of the aged care payroll tax supplement.
Patrick Reid, LASA chief executive, says the $653 million cut (over four years) will directly erode capacity for providers to deliver frontline care services to older Australians.
“It is of considerable concern that the government has implemented this measure without consulting the industry regarding what we understand to be a significant impact,” Mr Reid says.
“While Treasurer Hockey says it is ‘now our turn to contribute, our turn to build’, as potentially the highest growth industry aged care providers say now is not the time to compromise its capacity to serve Australia’s most vulnerable.”
Despite this, LASA welcomes the announcement of the redirection of the $1.5 billion Workforce Supplement. The Supplement will now be allocated back into care via residential, homecare and relevant community programs.”
Another peak body for the industry, Aged & Community Services Australia (ACSA) also welcomes the announcement of retaining the Workforce Supplement, which it says funding will be fairly distributed rather than available only to those providers who had measures in place to access it under previous legislation.
Adjunct Professor John Kelly, ACSA chief executive, claims redirecting the funding to a 2.4% ongoing increase in aged care subsidies is welcome news in a Budget that has generally quarantined aged care from funding cuts and will help provide stability for the sector.
“Tying it to industrial arrangements meant workers employed by smaller providers were not able to tap into the funds.”
However, Adjunct Professor Kelly expresses disappointment with the cessation of the Housing Help for Seniors Program, removing $173 million over five years.
"Of real concern, however, is the reduction in real annual growth in the Home Support Programme to 3.5% from a level of 6% from 1 July 2018 and we will be taking this up with the government,” he says.
Adjunct Professor Kelly warns there are many challenges ahead which concern how aged care providers will provide consumer choice and fund the sector in a sustainable manner into the future.
The federal government will eliminate or cut a range of entitlements for older Australians, in what Treasurer Joe Hockey says is an attempt to make pensions "affordable and sustainable for decades to come".
Mr Hockey confirms that from 2017, pension payments will grow more slowly.
From September 2017 onwards, the age pension will no longer grow in line with average male weekly earnings — instead it will be indexed twice a year against inflation.
Kasy Chambers, Anglicare Australia executive director, describes this year’s Budget as “backward”.
“The government set the scene for a tough budget that really looked to the future, but many of the cuts to welfare and services are a return to the past,” Ms Chambers says.
It’s not only aged care that has taken a hit, with Ms Chambers adding that requiring every patient to pay to see a doctor will not stop those who overuse the system; it will instead discourage those who need to take their health more seriously.
“Unfortunately the government chose to reinforce too many of these inequities, rather than to take them on. It’s a budget without hope – leaving many vulnerable Australians behind.”
BRIEF BUDGET BREAKDOWN
AGED CARE
$652 million has been saved over the next four years by scrapping Payroll Tax Supplement payments to eligible aged care providers from 1 January 2015.
Cessation of the Housing Help for Seniors Program, removing $173 million over five years.
The government will save $1.7 billion over six years from 1 July 2018 by slowing the growth in the Commonwealth Home Support Program.
HEALTH
The government will save $1.7 billion over five years by pausing the Medicare benefits schedule for two years from this July.
From July 2015, the government will introduce a $7 co-payment for visits to the GP and some screening services.
Australians will also pay an extra $5 towards the cost of each Pharmaceutical Benefits Scheme prescription from July 2015. Concession card holders will pay an extra 80 cents.
OLDER AUSTRALIANS
Pension age lifted to 70 by 2035, affecting Australians born after 1958.
Pensioners will be affected by a $7 co-payment to go see the GP. This will be waived after 10 visits per year for concession card holders.
The Seniors Health Card will be harder to qualify for, with the untaxed superannuation of new applicants now counting toward the income test.
The Mature Age Worker Tax Offset will be abolished, saving $750 million, although a new scheme, entitled Restart, will encourage companies to hire older workers by offering bonuses of up to $10,000 for the hiring of over 50s.
www.agedcareguide.com.au/news/2014/05/14/mixed-emotions-in-budget-response/?utm_medium=email&utm_campaign=DPS%20News%20-%208%20-%2014%20May%202014&utm_content=DPS%20News%20-%208%20-%2014%20May%202014%20CID_db0960dfb0ead77674f2bd229acb60cb&utm_source=email&utm_term=MixedemotionsinBudgetresponse