Labor to tackle two of budget’s biggest headaches – aged care and NDIS – in one go
Health Secretary Mark Butler will unveil fixes to the country’s struggling aged care system, as well as overhauling the $50 billion National Disability Insurance Scheme, in his pre-budget speech on two of the government’s fastest-growing cost pressures.
Labor will spend an extra $1 billion in next month’s budget to cover the costs of home care for older people who need help showering, dressing and managing incontinence; These services became available at an out-of-pocket charge when Labour’s new aged care system came into force last November.
The move for around 350,000 older Australians to benefit from home care packages, whether full-time retirees or self-funded retirees, follows a raft of complaints about people giving up showers or staying home due to rising costs.
The policy reversal is expected to be among a handful of elder care changes Butler will announce in his keynote address at the National Press Club on Wednesday. The speech will also reveal Labour’s plans to slow growth in the NDIS, including increasing services outside the scheme so fewer people rely on it.
The aged care system is predicted to cost more than $40 billion this year, while the NDIS bill is expected to reach $50 billion; That would put both among the five fastest-growing items in the federal budget and present an immediate challenge for Butler, who is responsible for both those areas and the health care system.
As well as unforeseen growth in the NDIS, the government is also grappling with general integrity issues: the Australian Criminal Intelligence Commission this month presented a submission to parliament saying organized crime and professional fraud syndicates had infiltrated the system.
The agency found NDIS funds were used for large cash withdrawals and asset purchases, with cash incentives or “commissions” offered to participants or their families, some of whom were unaware or coerced through intimidation or threats of violence.
The key challenge for aged care is rising demand, as Australia’s aging population faces long waiting lists for home care, nursing home bed shortages and workforce constraints.
More aged care changes coming to budget
Butler and Aged Care Minister Sam Rae launched a new aged care system in November to cope with the influx of Baby Boomers, expanding home care services and increasing user payments for those who can afford it. But teething problems, high costs and resource issues make it difficult to launch.
Rae said on Tuesday the government did not want people to be left without essential care because of cost, so Labor had listened to feedback and changed its policy to cover showering, dressing and incontinence care.
These services will be moved to the “clinical care” category of home care packages, meaning they will be fully funded. Previously, contributions were made between 5 percent and 80 percent, depending on the person’s financial situation.
“When the Aged Care Act started, we said we would continue to monitor how reforms were happening and fix what needed to be fixed. This is exactly that. As our population ages, we will continue to work to make sure the system is strong enough and fair enough,” Rae said.
NDIS overhaul increases fear and caution
Additional aged care changes will be announced on Wednesday alongside Labour’s wider plans for an NDIS overhaul, which will form the centerpiece of the government’s budget savings plan.
While the scheme is still growing at 10 per cent a year, Labor argues major changes are needed to put the NDIS on a more sustainable footing and maintain its social licence.
Major not-for-profit NDIS providers have welcomed the change and backed reforms that will return the program to its original purpose of providing individual support to people with the most severe disabilities.
However, many participants and families using the program are concerned that support for Labour’s budget-saving efforts will dry up, particularly as robust disability services outside the program are not yet available.
The Greens said on Tuesday they would fight against any cuts, while advocacy group Disabled People Australia launched a national campaign to warn people risk losing the support that enables them to live full and inclusive lives.
“I get about 25 to 30 hours of support each week. This support is not a luxury. It’s what allows me to work, spend time with my family and stay out of the hospital,” said Jeramy Hope, the group’s president.
“There are pressures in the NDIS and they are real. But they come from bureaucracy, delays and poor decision-making, not from people getting the support they need to live. The NDIS works. I am living proof of that.”
State treasurers briefed on Butler’s changes Tuesday reserved comment on the federal government’s plans until they are made public.
“We’re looking to see what additional role we can play, but it needs to be within our resources and we look forward to further discussions once the Commonwealth makes its announcements tomorrow,” NSW Finance Minister Daniel Mookhey said.
But Queensland was more critical. It is the only state government that has not yet signed Thriving Kids, the new disability plan for autistic children and those with developmental delays.
“[The Commonwealth] The state’s disability services minister, Amanda Camm, said “the most vulnerable children cannot be allowed to be abandoned without the long-term support they need, just to meet their budgets.”
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Natassia Chrysanthos is a Federal Political Correspondent. He has previously reported on immigration, health, social issues and the NDIS from Parliament House in Canberra.Connect with: X or email.
