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Government welcomes $300M Salvos aged care boost.

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Minister for Ageing


Parliament House Canberra ACT 2600 • Telephone: (02) 6277 7780 Facsimile: (02) 6277 4138

7 August 2007 CP 90/07

Government welcomes $300M Salvos aged care boost

A $300 million boost to its aged care accommodation network announced today by the Salvation Army has been welcomed by the Minister for Ageing, Christopher Pyne.

“Almost third of a billion dollars is being invested in eastern Australia’s residential aged care facilities by the Salvation Army and its commercial partner, Westpac,” Mr Pyne said.

“This marks an exciting new stage in the non-government sector’s leadership and commitment to the growth of the nation’s aged care facilities - and will result in new Salvation Army residential aged care facilities for NSW, Queensland and the ACT.

“This investment builds on the success of the Government’s new package of reforms to the sector, titled Securing the future of aged care for Australians.”

The package means that aged care providers will receive an additional $755 million in funding for capital over four years (including $486 million in additional Government payments). Providers will receive more than $300 million a year after that. In total, under the package, the Government is directing an additional $1 billion over four years to residential aged care.

And, with the Salvation Army’s announcement, the private sector is now adding strongly to the Government’s achievements to reform and build the sector.

Between 1 July 1998 and 30 June 2006, the industry invested $5.7 billion in building and upgrading of aged care homes, underpinned by Government expenditure.

Overall, the Australian Government has significantly increased expenditure on aged and community care services - from around $3 billion in 1995-96 to a budgeted $7.8 billion in 2006-07 and an estimated $10 billion by 2010-11.

“By June 2011 there will be around a quarter of a million operational aged care places, and over 100,000 of these will have been added by the Australian Government since 1996,” Mr Pyne said.

Media contact: Adam Howard 0400 414 833



The national operational aged care planning ratio at 31 December 2006 was 107.8 places per 1,000 people aged 70 years or over. This is the highest the operational ratio has been.

In June 1996, the national operational ratio was 93.5 places per 1,000 people aged 70 years or over.

The total number of operational places has increased from 141,292 in June 1996 to 208,698 in December 2006. An increase of over 67,400 places, or 48 per cent since 1996.

The number of operational residential places has increased from 136,851 in June 1996 to 167,724 at December 2006. An increase of almost 30,900 or 23 per cent since 1996.

In addition, the number of operational community care places has increased from 4,441 to 39,727 places in the same period. An increase of almost 35,300. That is nine times as many places as there were in 1996.

The Australian Government’s $1.6 billion Securing the future of aged care for Australians reform package will provide for a ratio of 113 operational places per 1,000 people aged 70 or over by June 2011, with outlays on aged care estimated to exceed $10 billion in that year.

There will be around 250,000 operational aged care places by 2011.

In 1996 there was no independent oversight of the quality of aged care homes. Now there is an independent agency, the Aged Care Standards and Accreditation Agency, which accredits every aged care home. All homes receive at least one unannounced visit every year.

Almost 3,000 residential aged care homes were accredited at the end of June 2006.