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Federal Budget 2020-21 Aged Care Snapshot


The 2020-21 Federal Budget was announced on 6 October 2020. This year’s budget included a total of $23.9 billion allocated to aged care which is an increase of $2.2 billion.

More Home Care Packages = $1.6 billion from 2020–21

  • 23,000 additional packages, building on the $325.7 million for 6,105 packages, announced on 8 July 2020

Home Care reform = $25.5 million from 2020–21 until 2023–24

  • A single in-home care program including further research and consultation with the sector, consumer representatives and peak bodies to ensure the best solution is delivered for older Australians.
  • From February 2021, providers of home care will be paid once aged care services are delivered, rather than in advance. Phase 1 will begin on 1 February 2021. Home care subsidies and supplements will be paid in arrears, at the full subsidy. Phase 2 will begin on 1 September 2021. Payments will continue to be paid in arrears, but they will be based on actual services provided to each care recipient. The Australian Government will begin to manage care recipients’ Commonwealth portion of unspent funds. Services Australia will collect and manage these unspent funds (on behalf of care recipients) until these funds are needed in the future.

COVID-19 pandemic response = $1.6 billion from 2019–20 to 2020–21

  • An additional $746.3 million further extends support announced in March, May and August as part of the Aged Care COVID-19 response plan
  • COVID-19 Support Payment provided to residential aged care providers. Under this funding, trained infection control officers will be mandated, responding to the recommendation of the Aged Care Royal Commission COVID-19: a special report
  • $81 million for additional surge workforce and increased training
  • $8.4 million to help cover staff quarantine costs
  • $440 million for the Aged Care Workforce Retention Bonus Payment
  • $92.4 million for Support for Aged Care Workers in COVID-19 to work at a single site
  • $71.4 million for additional short-term support for older Australians
  • $10.8 million for nursing skills and competence
  • $9 million for the Aged Care Quality Safety Commission
  • $10 million for the Community Visitors Scheme
  • $10 million to provide support for Indigenous Elders living in urban areas

Dementia care and support = $11.3 million in 2020–21

  • Face-to-face, video and telephone dementia support services across aged care
  • Additional support and training services for the aged care sector and informal carers of people experiencing behavioural and psychological symptoms of dementia

Workforce Industry Council = $10.3 million from 2020–21 to 2022–23

  • Supporting the Aged Care Workforce Industry Council to lead the implementation of the Aged Care Workforce Strategy, A Matter of Care

Royal Commission into Aged Care Quality and Safety = $4.1 million in 2020–21

  • To support the work of the Royal Commission to inform future reform of the aged care sector and to ensure that recommendations for reform are evidence based.

Commonwealth disability support for older Australians = $125.3 million from 2020–21 to 2023–24

  • The Disability Support for Older Australians (DSOA) Program will replace the Commonwealth Continuity of Support (CoS) Programme on 1 July 2021. The DSOA will deliver specialist services to older people with disability aged 65 years and over (50 years and over for Indigenous people) who are not eligible for the NDIS.

Greater choice for at Home palliative care = $3.6 million in 2020–21

  • Extension of the Greater Choice for At Home Palliative Care program. This will support access to end-of-life care for Australians, regardless of where they live.

Enhancing nursing skills and leadership capability in aged care = $10.8 million over five years from 2020–21

  • Expand the Australian College of Nursing scholarship program, and introduce a completion bonus
  • Establish an Aged Care Transition to Practice Program
  • Establish a skills development program for nurses and personal care workers in aged care

To read the full 2020-21 Federal Budget Fact Sheets, click here.

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