$11.1 billion in additional Govt funding – yet sector predicted to remain in deficit
New research from StewartBrown shows the increase in AN-ACC funding “should be” sufficient to cover the Fair Work Commission’s 15% pay rise for aged care staff on average, however some providers will have a greater benefit than others. Yet...
New research from StewartBrown shows the increase in AN-ACC funding “should be” sufficient to cover the Fair Work Commission’s 15% pay rise for aged care staff on average, however some providers will have a greater benefit than others.
Yet despite the additional $11.1 billion in Government funding, StewartBrown says the 5.75% increase in the minimum wage from 1 July 2023 “places increased financial burden on the Providers, and subsequently may result in an average projected deficit in the direct care result, which is not a financially sustainable position.”
StewartBrown projects that indexation and the 15% wage rise and 5.75% minimum wage increase for aged care staff will contribute to a $1.77 pbd direct care loss for residential aged care providers. This loss is a $7.17 decrease from the current $5.40 pdb surplus “and will deteriorate the current operating deficit,” StewartBrown says.
The sector needs to move towards “increased resident contributions” to meet the costs of supplying aged care services, StewartBrown says.
You can read the analysis here.
The SOURCE: Plan B is the answer to the funding shortfall in the sector.
