Increase in aged care subsidies

Federal Government funding in aged care totalling $467 million take effect in the form of subsidy increases from 20 March 2019.


The major rise is a $320 million increase in residential aged care subsidies, equating to an average additional $1800 per permanent resident.


This is an up-front payment to support all providers in the care of their residents over the next 18 months, while the Royal Commission goes about its work.


It will be paid as a 9.5 per cent increase in the subsidy for residents in mainstream residential aged care until 30 June 2019.


This boost provides additional support to the sector to deliver quality aged care services while the Government considers longer-term reform funding options.


Service providers that support senior Australians living in regional areas will receive an additional $101.9 million annual increase, as the viability supplement for eligible small, rural and remote residential aged care providers increases by 30 per cent from today.


Currently, more than 550 services, accounting for around 13,500 residential care places, receive the viability supplement to offset higher care costs in regional areas.


The Government is also providing an additional $35.7 million to increase home care supplements for people with moderate to severe levels of cognitive impairment and veterans’ with a mental health condition.


Seniors with a history of, or who are at risk of, homelessness will also receive a 30 per cent boost through a $9.3 million funding injection for providers specialising in services for the homeless.


This will help the more than 1700 residents who are supported through 42 residential services across the country.


20 March 2019.