Not unexpectedly, the Federal Budget handed down this evening did not introduce major structural reform to superannuation, social security, taxation or aged care. It was a Budget focussed on getting people back into jobs and encouraging infrastructure spend.
With the Royal Commission into Aged Care Quality and Safety due to report in February 2021, we will need to wait until next year's Budget to see if changes are made to client fees and subsidies.
In this Budget, three changes may interest aged care clients:
- An additional $1.6 billion has been allocated to releasing another 23,000 home care packages over four years. Despite this huge increase, the waiting list is long and clients need to start planning early for their frailty years.
- A $250 cash payment will be provided to pensioners and holders of the Commonwealth Seniors Health Card in December and again in March.
- CGT will be removed from formalised granny flat arrangements from 1 July 2021.
Another $400 million was allocated to other measures to continue to improve and reform the aged care sector. This included additional funding for the Aged Care Quality and Safety Commission and helping young people find alternative accommodation to residential care.
Read the official Budget summary for further details of these measures.