The interim aged care royal commission report makes clear that a dramatic increase in funding is going to be needed to give Australia an aged care system that doesn’t make us ashamed. But it’s also clear such an increase isn’t going to be enough. The aged care crisis — and nothing short of that term is sufficient — is a frighteningly complex policy problem and one that’s not going to be fixed quickly.
If you haven’t read the foreword to the commission’s interim report, go and do so right now. It’s harrowing and shameful. It’s unsurprising the government was taken aback by the scale of neglect, abuse and mistreatment that is being meted out to elderly Australians, and the blunt language the report — bearing the imprint of the late Richard Tracey — uses to convey it.
Nor does the report shy from noting (as Joseph Ibrahim points out) that so many of these problems are well known and yet have been allowed to continue. The only appropriate response is deep anger at a problem that is in no way new.
Left isolated and powerless in this hidden-from-view system are older people and their families. ‘This is not a life.’ ‘This is not my home.’ ‘Don’t let this happen to anyone else.’ ‘Left in her own faeces, and still no one came.’ ‘Mum doesn’t feel safe.’ This cruel and harmful system must be changed. We owe it to our parents, our grandparents, our partners, our friends. We owe it to strangers. We owe it to future generations. Older people deserve so much more.
It’s clear that a dramatic expansion in funding for home care packages is urgently needed, and will most likely be announced by the government next month: the push to increase funding to enable Australians to age in their homes rather than move into residential care is more than a decade old and home care funding has increased more than 40% since 2013, but with senior Australians waiting more than a year for the highest level of care packages, it is manifestly not enough.
In fact funding across the entire sector has significantly increased, despite the government cracking down on the rorting of the Aged Care Funding Instrument: in the last five years, Commonwealth funding on all aged care has grown around 43%, and yet the sector is still a national scandal. Worse, as this year’s annual report on aged care funding shows, the financial performance of both residential and home care providers suffered a “sizeable” decline in 2017-18 (likely as a result of the government ACFI crackdown).
The problem with pumping more urgently needed money into the sector is where the workforce will come from. More than a quarter of a million people currently work in residential care facilities, and their numbers grew 26% in the five years to August — one of the fastest growing subsectors in the entire economy, faster even than the broader health and social care sector. Similar growth over the next five years will require another seventy thousand aged care workers. Longer-term, that will accelerate, given aged care funding is forecast to nearly double to 1.7% of GDP in the 2050s.
There’s now an Aged Care Workforce Industry Council that is supposed to oversee the implementation of an Aged Care Workforce Strategy, but that only set up shop a few months ago. The workforce relies more heavily on migrant workers than other industries, with 37% of workers born overseas (including around 50% of personal care assistants) and the government recently introduced looser visa requirements for the aged care sector. Improved quality of care in residential aged care will likely require a significant expansion of a heavily migrant workforce.
The problem for a rapid growth of home care packages is that it will attract rorters and criminals. The experience of sectors that have seen the expansion of government funding, such as childcare, vocational education and the NDIS, is that crooks have been lured in by the prospect of large increases in funding in a sector without the capacity to immediately use it, creating opportunities for unscrupulous “service providers”. Rorters have migrated from childcare to disability services as regulators have cracked down or consumers have wised up, and there’s no reason to think an expansion of home care won’t see the same migration — indeed, there are already horror stories of elderly people being fleeced by home care providers. The home care sector also faces allegations of widespread tax dodging.
Pumping hundreds of millions of dollars of additional funding into home care — while crucial — is likely to also see more rorts and rip-offs, particularly given the “customers” and “clients” are vulnerable older Australians. This isn’t an easy problem to fix. And it will take a long time.
Are we seeing the beginning of change in a broken industry? Will the royal commission really make a difference? Let us know your thoughts at boss@crikey.com.au. Please include your full name if you would like to be considered for publication.
The response will be – more regulation more, red tape leading to more compliance time to comply with government regulations – leading to less service time being delivered which is original main reason for the present situation – all these Inquiries, commissions neglect to look at the fundamentals for the service deterioration. By not looking at the fundamental reason , public service governmental incompetence. The correlation is nearly a mathematical formula. Funding+ volume of compliance is inversely proportional to Aged Careoutcomes. Aged care outcome ∞ 1/Funds+regulations
Aren’t the vast majority of aged care services provided by private industry these days, rather than the public service? How do associated problems get to be laid at the public service’s feet?
It’s privatisation of public services, lack of adequate regulations and significant underfunding of aged care that has caused this crisis …
Pull the other one Desmond – what a pile of frog poop.
You are reading the wrong online news again, go back to Sky.
Well there is a grain of truth to your reasoning Desmond, that being that successive LNP governments have forced incompetence onto the relevant public service departments with relentless “efficiency dividends” and partisan leadership. That is the treasonous IPA strategy to endlessly discredit the public service and undermine our confidence in government.
You don’t quite admit that though….
“public service governmental incompetence”
Just rubbish. This is all outsourced, all of it private sector or charities. Couldn’t be further from the truth.
What you call red tape and regulation is an effort by the Taxing Authority to ensure those it entrusts taxpayer funds to deliver what is intended and not simply rorted. The Commonwealth Govt is principally a source of funds to others it engages to act as agents on its behalf. It can be State Govts., Not for Profits or outright Corporates, some deliver and others don’t, you need to discriminate, blanket from the hip targeting doesn’t help anybody.
There needs to be a critical rethink of the “packages” system of care for both aged and ndis recipients. They are so prone to rorts and middle management wealth creation. How do you get the real needs of recipients met without creating a greedy wealth grabbing business between them and the government money. The not for profits who try to do it properly are being competed against by those who dont care about the quality of the services provided. And those working providing the hands on care need better training and better pay for quality service ie training pathways and career prospects not short term casual work. Considering the current governments inability to deal with other social problems their ability to sort this out effectively is grim.
“How do you get the real needs of recipients met without creating a greedy wealth grabbing busines”
Perhaps we could get the government deliver these services.
Obviously the lot of you haven’t a clue about aged care services or been involved with someone actually working in the sector. Hardly any country aged care facilities have made or make any money at all. NDIS is a total waste of moneyed will have to be restricted the country cannot afford it and the wrong people get it . A pilot program in South Australia for children budgeted for 10,000 children with autism but ended up with 40,000. The productivity commission last week pulled a figure out of the hat and said 128 billion is the cost of untreated mental health. The country seems to be made up of nutters and invalids- reading some of the comments doesn’t surprise me.
The government shouldn’t be responsible for the aged – families should be. After all the aged were responsible for them when they were growing up. It’s the families who want to outsource their responsibilities then end up whinging mum & dad are not well looked after by strangers. Well they are not well looked after by relatives either.
Ah yes the whole worlds go e mad except thee and even and I’m not so sure about thee either.
Reading your piece it strikes me you are speaking from a pulpit of Moral Authority not a reality of ever having the responsibility of care for either disability or age. I have had both and can assure you support is needed and professionally trained support at that, not just the neighbour dropping in. Ever thought what is to happen to you personally when it’s your turn ?
no morality involved – simple economics – the nation cannot simply afford funding more and more well meaning poorly Canberra administered
NDIS
Aged Care
Carers allowances and carers pensions
Centrelink
Prescriptions Benefits schemes
the remnant of the aged pension scheme
Department of Veterans prescription schemes
Department of Veterans Home remodelling scheme
Aboriginal schemes –
Additional closing the Gap schemes
the 30 odd Commonwealth Commissions [some of which we never hear about]
There isn’t the sheer numbers of the remaining population that can continue fund these giveaways
What your list says Desmond is that none of those services affects me so not having them will make no difference to me.
Service provision, whether it be aged care, NDIS or Refugees, and the “for profit agenda” has meant it has’ too often, become a cash cow for the pyramid selling of labor. Where for every dollar spent perhaps less than 10 % is actually delivered to the person in direct service.
Quite correct Bernard : ” This cruel and harmful system must be changed.” !! Utterly !! BAN PRIVATISATION !!
If only it were that simple. Many haven’t forgotten the awful revelations in the 70’s of Victorian psych and disability state institutions.
A dramatic increase in funding is required … this is not a matter of managent competence or policy … the crises comes from a critical and significant lack of resources including adequate staff numbers, qualifications and training all of which cost more … as well as considerably more funding better regulations are required, particularly regarding staff/client ratios …
This comes as a smug government committed to the IPA inspired ideology of minimum government cynically and deliberately underfunds not only aged care but public hospitals and healthcare and disability services as well …
Critically bad public services are the result of the Morrison government’s obsession with a propaganda “victory” over the creation of a budget “surplus” … meanwhile healthcare, aged care and disability services are in crises and so the quality of life of ordinary Australians is considerably diminished …