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.”
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