Aged care funding rise of 2.55% fails to cover wage and food cost increases
The federal government's 2.55 per cent funding increase for aged care falls short of wage increases that have risen 4.65 per cent.
The Albanese government announced a 2.55 per cent funding increase for residential aged care, up to $303.19 per person per day. Warrigal aged care CEO Jenni Hutchins says this would not even cover wage increases for workers in the sector, which have recently risen by 4.65 per cent or rising costs for food, fuel and laundry services.
Staffing costs have increased 4.75 per cent, and inflation is running around 4 per cent. Almost two-thirds of aged care providers are operating at a deficit.
Hutchins is calling on the government to reconsider the increase, saying the funding formula needs to address the real costs of delivering quality care to residents who are arriving frailer and with more complex medical needs.
- 2.55 per cent
- Funding increase
- $303.19 per person
- New daily rate
- 4.65 per cent
- Wage increase
- Almost two-thirds
- Providers in deficit
Why it mattersUnderfunded aged care means workers are stretched, costs stay hidden in deficits, and quality of care for older Australians is at risk.
AustraliaAged care homes across Australia are struggling to cover costs, which could affect staffing, care quality, and the sustainability of the sector.
✓ Claims checked against the source and corrected before publish. checked 9 d ago
