Aged care improvements come at pensioners’ expense

The federal budget is spending big on aged care, but cost of living pressures remain for pensioners.

The Albanese government is committing to ensuring “older Australians have the support, care and dignity they deserve” with budget funding that addresses the tumultuous culture and conditions of aged care exposed by the COVID-19 pandemic.

The sector will receive $2.5 billion dollars over four years, making good on the government’s commitment to increase average care minutes per resident and mandate that facilities have a registered nurse on site 24/7.

In addition, $810.2 million will be awarded to aged care providers to manage COVID-19 and $34.9 million to continue in-reach testing in aged care. As well as better care, residents can also expect better food, which is fresh, healthy and safe.

“We choose to pay for better aged care, and better wages for those giving care,” said Treasurer Jim Chalmers in his address to parliament.

In response to the recommendations of the Aged Care Royal Commission, the government is committing funding to support any resulting increases to award wages and also establishing a national registration scheme for personal care workers, which will include a new code of conduct to protect care recipients and further professionalise the workforce. 

Combined Pensioners and Superannuants Association (CPSA), a not-for-profit organisation serving pensioners, superannuants and retirees on low incomes, welcomed the “solid interim budget” but says it is “regrettable that [it] offers no cost-of-living relief for pensioners”.

“This budget has little in the way of one-off, special measures that benefit pensioners specifically, but does deliver an earnest of the Australian government’s intention to fix aged care”, said CPSA policy manager Paul Versteege.

“CPSA would like to see the frequency of pension indexation increased, certainly during times of high inflation. Full rate pensioners had to find approximately $750 over the almost nine months up to September to cover cost-of-living increases. 

“Quarterly indexation would certainly go a long way to assisting full rate pensioners in coping with price rises for essential goods and services.”

One area of distress for pensioners is the affordability of housing, with research by Anglicare Australia revealing that older renters are at a significant disadvantage compared to homeowners when it comes to their ability to age independently, an outcome acutely affected by rising costs of living.

The report found that nearly half of older renters live in poverty, with the typical homeowner aged over 65 spending just five per cent of their income on housing, compared to nearly 30 per cent for renters.

CPSA commended the government’s commitment to build 30,000 social and affordable homes over five years, commenting that it “is a good start, although the size of the housing crisis is such that even a significant initiative such as this will go nowhere near solving it”.