Accountability and Funding Changes for Aged Care with 15% Wage Rise Announcement

Accountability and Funding Changes for Aged Care with 15% Wage Rise Announcement

Accountability and Funding Changes for Aged Care with 15% Wage Rise Announcement

Australia's upcoming Federal Budget is expected to provide a much-needed boost to the country's aged care workforce, however, the funding is sure to come with strings attached for providers. The Budget, set to be released by Treasurer Jim Chalmers in two weeks, is expected to include a 15% wage increase for aged care workers, who have been calling for greater transparency regarding funding allocation.

There has been significant pressure on aged care, along with other sectors, to demonstrate greater accountability for how they spend taxpayer money and deliver on care outcomes.

The Australian newspaper recently published a report on the Committee for Economic Development Australia (CEDA) report, titled ‘Disrupting Disadvantage,’ which found that over $60 billion in government funding for community services such as aged care, disability, and social support are not evaluated for their success.

With aged care now the fifth-largest area of government expenditure, it is widely expected that the May Budget will deliver additional funds for the sector, including details of the 15% wage increase. However, with the government facing a budget black hole, and calls to account for every dollar, it is likely that there will be increasing requirements for providers to report on how the funds are allocated.

Calls to tie aged care funding directly to care outcomes have previously failed to gain traction. However, with the budget also expected to spend big on disability, defence, and health, it seems that greater transparency and accountability will be all but guaranteed.

The ageing of Australia's population is increasing the demand for aged care, putting pressure on the industry to provide high-quality care to those in need. The COVID-19 pandemic highlighted the challenges faced by the sector, with a high number of aged care residents contracting the virus and many dying as a result. The pandemic also exposed the vulnerability of the aged care workforce, with many workers being underpaid, understaffed, and working across multiple sites, which resulted in the rapid spread of the virus.

The upcoming budget provides an opportunity for the government to address some of the issues facing the aged care sector, such as the workforce shortage, inadequate funding, and the need for greater transparency and accountability. It is important that the 15% wage increase is passed on directly to workers and not used to fund other areas, as the workforce is crucial to providing high-quality care to the elderly population.

As the government prepares to release the budget, it is crucial that the aged care sector is not overlooked. The sector is facing significant challenges, and it is essential that the government provides the necessary funding and support to ensure that the elderly population receives the high-quality care they deserve. The 15% wage increase is a positive step, but it is just one piece of the puzzle. It is hoped that the budget will deliver additional funds and measures to address the long-standing issues facing the sector and provide a better future for Australia's elderly population.


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