Federal Budget 2020 | Aged Care Updates

by | Oct 19, 2020


Enhanced access, quality and safety in aged care

The 2020-21 Budget provides a record level of $2.0 billion support into aged care over four years to progress reforms to deliver improved outcomes for consumers and providers.

Support for consumers includes:

  • $1.6 billion over four years from 2020-21 for the release of an additional 23,000 home care packages across all package levels.
  • $125.3 million over three years from 2020-21 to support older Australians with a disability who are ineligible for the National Disability Insurance Scheme.
  • $29.8 million over three years from 2021-22 to administer the new serious incident response scheme

Support for providers and the workforce includes:

  • $91.6 million over two years from 2020-21 to continue the reform to residential aged care funding including undertaking ‘shadow assessments’ using the Australian National Aged Care Classification.
  • $35.6 million over two years from 2020-21 for additional funding for the Business Improvement Fund to improve the financial viability of aged care providers.
  • $10.3 million over three years from 2020-21 to support the implementation of the Aged Care Workforce Strategy.

Younger people out of residential aged care

Welcome support is provided for younger people living in residential aged care. $10.6 million in2020-21 was announced for a national network of system coordinators to help younger people in age-appropriate accommodation and transition to independent living in the community.

Aged Care Royal Commission Report on COVID-19

Following the release of the special report on COVID-19 by the Aged Care Royal Commission in October 2020, the government announced it will accept all six recommendations and is investing$40.6 million in its initial response. A report to Parliament on implementation of the Commission’s recommendations is expected by 1 December 2020.

COVID-19 response package

COVID-19 has impacted older Australians in aged care disproportionally. $746.3 million of dedicated funding has been announced over four years, including:

Support for consumers:

  • $71.4 million in 2020-21 to support residents of aged care facilities who temporarily leave care to live with their families.

Support for providers and the workforce:

  • $245.0 million in 2020-21 for a COVID supplement to assist all Commonwealth funded residential aged care providers and home care providers with the cost of operating during the pandemic.
  • $205.1 million over two years from 2020-21 to support the direct care workforce through a third instalment of the workforce retention bonus and additional funding for the second instalment.
  • $103.4 million in 2020-21 to continue the COVID-19 aged care preparedness measure that supports aged care providers to manage and prevent outbreaks of COVID-19, including infection control.
  • $10.8 million over five years from 2020-21 to enhance the skills and competencies of Enrolled Nurses and Registered Nurses in aged care.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Chan & Naylor, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.