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Chart: The Government will allocate 27,900 aged care places over the next three years.

The Government will allocate 27,900 aged care places over the next three years.

Investing in Australia’s aged
care: more places, better care

The Government will implement a range of measures to increase the number of aged care places, improve the quality of care, and help providers build new facilities and upgrade existing ones, as a direct response to the longer term issues of the ageing of our population.

More places, better quality

The projected proportion of the population aged over 65 will increase from 12.8 per cent in 2002 to 24.5 per cent in 2042. In 2012, the proportion of the population aged over 85 will have grown from 1.5 per cent to 1.9 per cent, and is projected to grow to around 4.3 per cent by 2042.

The Government is committing an extra $2.2 billion over five years to expand the number of places and improve the quality of care and facilities. It will also initiate a reform process to ensure a more productive and viable aged care industry.

In 2003-04, the Government is providing $513 million to providers to ensure that all residential facilities improve safety and building standards for aged care homes.

An additional $58 million will be provided to help lift the number of aged care places to be allocated over the next three years to 27,900.

Over the next four years, the Government will improve the quality of care by introducing a

Conditional Adjustment Payment which will progressively increase subsidies to providers by 7 per cent. This will deliver an extra $878 million in resources available for care.

The quality of care will be improved by enhancing the skills of workers in aged care homes, and 1600 aged care nurses will begin training in the next four years.

To help providers expand and improve high-care facilities, the maximum accommodation charge that providers will be able to charge new non-concessional high-care residents will be increased by $2.34 per day to $16.25 per day. The supplement paid by the Government on behalf of those residents unable to afford higher accommodation charges will also rise to match the increased charge. These measures will help move the sector to a more financially sustainable structure in the long-term.

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