CONCERN FOR GROWING RUMOURS OF FUNDING CUTS TO AGED CARE IN PRIME MINISTER RUDD’S MAY BUDGET
The Member for Berowra, Philip Ruddock MP said today that there growing rumours of funding cuts to aged care in the May Budget was of grave concern to the aged care sector in my electorate.
“To keep pace with costs, the Howard Government introduced the Conditional Adjustment Payment in 2004 to assist aged care providers through increased financial assistance to continue to provide high quality care,” Mr Ruddock said.
A 1.75% additional subsidy per annum compounding over four years was also part of the Conditional Adjustment Payment with the initiative to be reviewed prior to it lapsing in June 2008 and it is vital that the 1.75% index be included in the May Budget, otherwise it will cease in June 2008.
‘The additional 1.75% index is valued at approximately $102m per annum, bringing in $735.00 per week ($38,000.00 per annum) for a standard sixty bed aged care facility and if this 1.75% index were to be scrapped, the care of older Australians would be severely compromised,” Philip Ruddock said.
“Aged care facilities would have to cut back on services, reduce care staff numbers and older Australians would not receive adequate care and attention.
“To meet the increasing challenges of my constituents, funding increases are needed not funding cuts.”