ACST expresses mixed feelings on aged care federal funding announcement

The peak body representing the State’s aged care providers, Aged and Community Services
Tasmania (ACST), today expressed mixed feelings over the latest policy announcement from the
Minister for Ageing, Mark Butler regarding the implementation of the Aged Care Workforce
Compact.

Under the Living Longer, Living Better aged care reform package announced in 2012, the Federal
Government is aiming to redirect $1.2 billion in aged care subsidies into wage increases for
Australia’s aged care workforce.

ACST CEO Darren Mathewson said while wage increases were a key component of meaningful
aged care reform, there was still the need for an injection of new funding.

“We are particularly concerned about the capacity of small community rural and regional aged care
providers to satisfy the requirements to access this funding and hope the Government is prepared
to assist this group,” he said.

“In addition, this package creates an obligation on aged care providers to fund up to a further $3 in
wages for each $1 on offer from the Government, plus implement new industrial provisions which
will have both a financial and administrative impact.

“The Government must ensure that the whole sector can access these much needed funds and
that all aged care workers receive this wage increase, particularly those in most need.

“Sooner or later, either this Government or the next will need to bite the bullet and provide new, not
redirected, funding for aged care wage increases.”

Mr Mathewson added that with this announcement, the Government was making a range of
assumptions about capacity and viability that did not recognise the diversity in the Tasmanian
sector and the struggle for the State’s regional service providers.

“We will, however, work closely with Federal Government representatives to make sure
Tasmania’s aged care workforce benefits from these changes and will continue our workforce
development activities that have seen significant investment in education, training, recruitment and
retention over recent years,” he said.
Aged and Community Services Tasmania