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Increased funding rates for aged care homes.

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Media Release Bronwyn Bishop Minister for Aged Care

Sunday 1 July 2001

INCREASED FUNDING RATES FOR AGED CARE HOMES Federal Minister for Aged Care Bronwyn Bishop today announced that the rates of payment of all residential care, community care and flexible care subsidies and supplements would be increased from 1 July 2001 in line with normal annual indexation arrangements.

Mrs Bishop said this year the rates of payment for subsidies and supplements will increase by 2.3 per cent.

"This amounts to some $102 million in additional funding that the Commonwealth will provide to residential and community aged care homes and community care providers, and it will ensure that average real funding levels are maintained," Mrs Bishop said.

Further, about a quarter of aged care homes income is comprised of resident contributions which rises in line with CPI or Male Total Average Weekly Earnings (MTAWE), whichever is greater, in March and September every year.

"I am also today announcing a further instalment in the Funding Equalisation and Assistance Package. This package was established to redress the system that the previous government left, which resulted in different States and Territories being funded at different rates for high care.

The Funding Equalisation and Assistance Package provides an additional $148 million over a number of years so that lower funded States reach the national average more quickly and no State or Territory experiences a decline in funding.

"During 2001-2002, the package provides additional funding of $30 million, of which Queensland will receive $25 million. This significant funding boost will help Queensland along with South Australia, Western Australia and the ACT reach the standard national subsidy rate in just one year from now, on 1 July 2002," Mrs Bishop said.

Mrs Bishop said the Commonwealth Government will provide a total of $4.2 billion for residential care in 2001-02. This is an increase of more than $330 million over the 2000-01 estimate, and represents an increase of 70 per cent since 1995-96.

Including Government subsidies, user charges and Commonwealth capital funding, the total income to providers of residential care is projected to reach $6.0 billion this year (2001-02).

"The Howard Government is proud of its record in providing a sound and sustainable aged care system and is determined to provide adequate funding to ensure the Australian community has an aged care sector of world class standard," Mrs Bishop said.

[Note: residential aged care subsidies and supplements are indexed annually on 1 July using an indexation factor known as Wage/Cost Index 9 (WCI9)].

Media Contact: Genevieve Atkinson (Minister Bishop's Office) 0407 367 694

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Published on Commonwealth Department of Health and Aged Care web site 2 July 2001 Commonwealth Department of Health and Aged Care URL: