Aged Care Changes in 2018 Federal Budget



The Federal Budget has come and gone and the main take out as far as residential aged care fees are concerned is that there were no major changes.

Still the same:

Before listing some of the aged care related changes that were in the budget it’s worth re-iterating that:

The RAD/RAC & DAP/DAC system stays as it is currently.

The Basic Daily Care Fee remains as is currently: $50.16 per day (85% of single basic pension rate).

Means Tested Fee annual and lifetime caps remain in place: currently $26,964.71 and $64,715.36 respectively.


Home Care packages up: An additional 14,000 packages (expected to be at Level 3 & Level 4) over the next 4 years.

RADs & RACs are still guaranteed if paid to an approved provider however there will be a levy imposed on all Aged Care Providers if defaults are greater than $3 million in a financial year.

The DHS’s Permanent Residential Aged Care Request for a Combined Assets and Income Assessment form (SA 457) is to be simplified and a new form in use by May 2019

Funds are being allocated to streamline the ACAS/ACAT assessment process and also towards improving the My Aged Care website.

There will be a trial of four programs involving information and community hubs aimed at improving consumer understanding of the aged care system.

The new Aged Care Quality & Safety Commission will commence from 1 January 2019 and will receive additional funding to enhance regulation of aged care.

Additional funding has been proposed to introduce 13,500 new residential care places and 775 short term restorative aged care services in 2018/19.

To encourage providers to build new aged care services, $60 million will be allocated towards capital investment for new places. Another $40 million will be allocated to providers in regional, rural and remote areas for construction and improvement, plus $105 million for aged care services in remote indigenous communities.

Additional funding will be allocated for palliative care services in residential care (subject to matched funding from the states and territories) as well as innovations in managing dementia and mental health programs for older Australians.


Victorian State Budget 2018

Speaking of budgets, last week’s Victorian State Budget had an interesting inclusion relating to future aged care workers.

From 1 January 2019 students will pay no tuition fees for 30 priority non-apprenticeship TAFE courses. Included in the list are several relevant to carers roles such as the Certificate IV in Ageing Support, Certificate IV in Disability and the Diploma of Nursing.

A good initiative I reckon!