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Budget cuts to aged care deeper than expected: LASA

A closer look at the Budget cuts to aged care have revealed an additional $350 million will be removed from care services than the Government has projected, Leading Age Services Australia (LASA) has said.

The body said, as a result, the sector can expect more than $2 billion in cuts over the next four years.

The analysis by Ansell Strategic, commissioned by LASA for its members, found that the changes to the Aged Care Funding Instrument (ACFI) will see cuts of almost $350 million more than initially thought.

LASA spokesperson Beth Cameron said coupled with the reduction of $607 million announced last December, aged-care providers will have to find about $2 billion from other sources to make up the shortfall and remain viable.

Cameron said: “The detrimental impact of these changes will not only affect providers, but people whose high care needs are being reclassified by a Government that clearly sees them as a financial burden.

“While LASA welcomed the expansion of the rural viability supplement to allow more providers to receive the financial support they need, it is nothing more than a token that will be overshadowed by the severe cuts over the next year.”

Click below to hear more from Cameron.

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3 comments

  1. I feel our old people are getting ripped off !!!!

    How can staff give the required care?? These people have paid taxes all their lives but now many cannot even vote so don’t have a voice. I attend conferences where it is stressed “We care for elderly” I ask both side of government DO YOU REALLY CARE. I don’t think so.
    I am a D O N who is trying to provide staff to give good care, to comply with all the regulations & Accreditation, pay nurse a fair wage with less resources.
    PLEASE REMEMBER we all could all end up in care one day & we will want the best for ourselves.

  2. anton hutchinson

    How long can this go on? What is the Governments agenda here? It appears there are bodies hell bent on destroying the residential aged care industry that has been scutinised to distraction! Scrutiny and ACFI drag backs, higher care residents, relatives with unreal expectations etc and now a disgusting slash of funding. The Government accepts that there is a need for care, they know residents are coming in with complex conditions that need a high level of staff cover..yet they dont care.

    Worse than that they completely wasted the money saved from the dementia subsidy withdrawal by duplicating a service (DBMAS) already doing a great job AND huge increases in the most expensive alternative of Home care. Home care averages about three hours per week and yet they still attract the dementia supplement! Ridiculous! Only about 30% of Home Care funding is directed at the resident! Outrageous!!
    There is just no way a high care dementia person living at home can be safely cared for in only a couple of hours per week and the hospital waiting list shows just that. Hundreds of ACAT assessed people are bed locking acute beds because they dont want to go into aged care, so why not go home? Yep, they cant be properly cared for at home.
    Shame Government and Minister Ley. Who the Hell is going to be supplying the number care places in 2030 that we are constantly told about?

  3. We’re a small facility 95 beds that provides services to the poor and disadvantaged. Our decrease will be just over a million dollars. With the change starting in July we have no means to replace the $80k per month that we will be losing. Seems the government will be providing aged care services to the homeless as no one will be able to keep their doors open. To provide services.