What's Happening?
Ageing Australia, a peak body in the aged care sector, has put forward 11 recommendations aimed at enhancing the funding and workforce capabilities of the aged care sector in anticipation of the upcoming
federal budget. These recommendations are designed to address the growing needs of Australia's ageing population, which is expected to reach 2.3 million individuals over the age of 70 by 2044. Key proposals include increasing the accommodation supplement to enable residential aged care providers to invest in modern facilities, setting a price floor for the Maximum Permissible Interest Rate to encourage investment, and expanding the Aged Care Capital Assistance Program. Additionally, the organization suggests establishing a national Essential Skills Visa to facilitate the recruitment of overseas aged care workers and removing Labour Market Testing for critical roles. Tom Symondson, CEO of Ageing Australia, emphasized the urgency of these measures, highlighting the need to build 10,000 beds annually over the next decade to meet demand.
Why It's Important?
The recommendations by Ageing Australia are crucial as they address the dual challenges of funding and workforce shortages in the aged care sector. With the ageing population set to increase significantly, the sector faces a potential shortfall of 400,000 workers by 2050. Without immediate investment and policy changes, the sector may struggle to provide adequate care, leading to increased pressure on hospitals and other healthcare facilities. The proposed measures aim to ensure that older Australians can access quality care when needed, thereby safeguarding their well-being and reducing the burden on the healthcare system. By facilitating investment in infrastructure and workforce development, these recommendations could enhance the sector's capacity to meet future demands.
What's Next?
If the recommendations are adopted, the aged care sector could see significant changes in funding and workforce policies. The federal government will need to consider these proposals in the upcoming budget discussions. Stakeholders, including aged care providers and community groups, are likely to engage in advocacy efforts to support these changes. The implementation of a national Essential Skills Visa and adjustments to funding models could attract international workers and stimulate investment in aged care facilities. These developments would require coordinated efforts between government agencies, industry leaders, and community organizations to ensure successful execution and long-term sustainability.
