Aged care reforms get co-operative green tick in budget

13 May 2015

The BCCM views the aged care reforms announced in last night’s Federal Budget as a positive step towards older Australians having a greater say and control over the care services they receive. The government has announced the provision of $73.7 million over four years to increase consumer choice and flexibility for older Australians who receive a Commonwealth funded Home Care Package. From 1 February 2017, funding formerly allocated to service providers will be allocated to the consumer based on their care needs.

“The challenge for government is how you ensure that there is sufficient competition and choice in care markets for consumers to get the benefits of individualised funding” said BCCM CEO, Melina Morrison.

“Co-operatives and mutuals can provide solutions on both the supply and the demand side of the market. For example smaller providers of home care services can combine back office functions to reduce operating costs and to scale to compete against larger providers.”

The Department of Social Services will be consulting with stakeholders on potential programme and funding models, as well as options for implementation and transition to the new aged care arrangements. The BCCM urges government to respond to the findings of its recent reviews into the welfare system and competition policy which found that mutual aid and co-operation can help consumers.