ACCPA releases aged care recommendations in pre-budget submission

Sustainable funding, easing the workforce crisis and innovation are at the heart of ACCPA’s 10 recommendations in its pre-budget submission.

“We need to make sure our system is ready to not only support older people now, but also in the future. We can’t do that unless we address key issues around workforce, funding and innovation,” ACCPA CEO Tom Symondson said.

“Aged care has been chronically underfunded for decades and we can’t keep going like this. The time is now. With the release of the Aged Care Taskforce’s report last week, we can finally have some confidence for the future of our sector.”

“Those recommendations will take time to bear fruit, and it is incumbent on the government to continue to grow funding to the sector in the meantime or aged care will slip through the cracks before reform can be implemented.”

“Half of residential providers are losing money on each and every resident and home care is trending dangerously down. This is unsustainable now, let alone in the future with demand for care set to spiral as the Australian population continues to age rapidly,” said ACCPA CEO Tom Symondson.

ACCPA is calling for funding changes aimed at providing long-term solutions including an increased role for consumer contributions towards aged care services, something strongly recommended by the taskforce report, for those who have the means to do so, while supporting and protecting those most in need.

Under the recommendations, the Government would remain the primary funder of aged care. But people receiving aged care services, if they can afford it, would contribute more towards the cost of those things, such as accommodation and daily services, that they have typically paid for throughout their lives.

“Currently, aged care providers receive far less to provide accommodation and daily services such as food and cleaning than those services cost. That has led to the huge losses we now see in the sector, the lack of new and refurbished facilities across the country, and the increased threat of closures.“

“Despite significant investments from government in recent years, the sector is still struggling to keep its head above water. We need a system that supports access for every older person. Everyone should have access to high-quality aged care, regardless of their location, level of need, or financial means. But that means we have to invest,” Mr Symondson said.

“Older Australians should have the choice to age confidently wherever they want to live and be able to access whatever services and supports they need.”

The continuing workforce crisis in Aged Care is another major priority in ACCPA’s pre-budget submission.

In 2022, the Committee for Economic Development (CEDA) found the annual staff shortage in aged care had doubled in less than a year – escalating from 17,000 to 35,000.

“Workforce solutions require more than just filling a job. It’s about the person, their family and the communities they and the aged care provider’s support.”

“We’re advocating for better access to education, improved access to housing for care staff, easier migration routes for overseas workers, and direct funding of targeted aged care workforce programs,” Mr Symondson said.

ACCPA welcomed last week’s Fair Work Commission decision to award further wage rises to direct care workers, but acknowledged the disappointment facing many other workers, who will receive substantially smaller increases.

“We fully expect the Government to honour its pre-election commitment to fully fund these increases, just as it did for last year’s 15% pay rises for direct care workers,” Mr Symondson said.

ACCPA is also calling for $990 million over three years to encourage innovation, support and enable technology transformation of aged care providers to enhance quality care, create efficiencies and support continuous improvements.

“Aged care in Australia is at a crossroads, but keeping up to date with developments, including new technology, will be a key to future success in this digital age of change.”

“The use of cutting-edge digital technology for data collection and analysis, can support aged care providers to continue their journey on quality and sustainability, as well as easing the administrative burden.”

ACCPA Pre-Budget 2024-25 Submission – January 2024 – ACCPA
R1: Fund quality and sustainable aged care services*
R2: Implement independent pricing determinations for aged care
R3: Support increased demand for home care and the transition to the new Support at Home Program
R4: Improve access to oral health care for older Australians
R5: Address and alleviate additional cost pressures on aged care from State-based taxes
R6: Boost the aged care workforce (and others in the health sector and care and support economy) across regional Australia through incentives and housing options
R7: Support aged care providers to access and retain migrant workforce
R8: Support quality of care for older Australians through innovation and technology transformation
R9: Choice for older Australians to age confidently wherever they want to live, and for whatever life and care needs they may have
R10: Productive care and suppport services supported by effective regulation and transparency

Media contact: Peter O’Dempsey 0499 106 957 or