In Australia, aged care is widespread. After all, residential aged care is important for people who require extra care and gives them the support and accommodation for their specific needs. 

The Australian government treats aged care with special priority. As such, the government pays for much of the aged care across the country through paying care subsidies and supplements to providers. So, how exactly does government funding work for aged care facilities?

If you want to learn more about how the Australian government funds aged care in the country, please continue reading below. 

What Is Aged Care?

Before we begin to talk about how the government funds aged care, let’s discuss what aged care is in the first place. 

The government classifies aged care as the support provided to older people either in their home or in a nursing home. This support takes the form of help with everyday living, health care, accommodation, and even equipment such as walking frames.

Aged care services can be provided in the care of your home, in nursing homes, or as short-term care such as respite care or after-hospital care. 

It is important to note, however, that there are eligibility guidelines in order for you to qualify for government-funded aged care services. Generally, people aged 65 or older qualify for aged care services, but this can be flexible. For example, if you are 50 years or older and you identify as an Aboriginal or a Torres Strait Islander, you can qualify to receive aged care services. 

Aged care can be provided by different types of organisations that include not-for-profit organisations, government organisations, and for-profit private companies. In order to become approved providers and receive government funding, organisations must apply for this.

Aged Care Funding By The Government

The Australian government pays aged care service providers to deliver aged care through subsidies and supplements, capital grants, and program funding. People who receive government-subsidised aged care can contribute to the cost through aged care fees and charges if they are able to afford it. 

When it comes to the government paying subsidies to approved providers, each person will be able to receive government-subsidised residential aged care, residential respite, Home Care Packages (HCP), and flexible care such as transition care and short-term restorative care (STRC).

It is also worth noting that the basic care subsidy for each resident is calculated using the Aged Care Funding Instrument (ACFI). ACFI allows nursing homes to assess the care requirements of a certain resident. It typically consists of a series of questions that can determine the funding level across three areas: activities of daily living, behaviour and complex health care.

Meanwhile, supplements support the costs required to meet specific care needs for eligible care recipients. For some programs, it is required to allocate a government-subsidised aged place before you can obtain subsidies. You can apply for residential aged care and STC through Aged Care Approvals Rounds (ACAR), while flexible aged care placed for Multi-Purpose Services (MPS) can be applied for through MPS Allocation Rounds. 

On the other hand, capital grants can be applied for through ACAR and be used to help improve your facilities. Additionally, program funding or funding grants can be applied for through aged care programs such as the Commonwealth Home Support Program (CHSP), Dementia and Aged Care Services (DACS) Fund, and the Multi-Purpose Services Program.

Summary

Aged care is one of the biggest priorities for the Australian government. As the costs of aged care in Australia can be quite expensive, the government helps provide funding through subsidies and supplements, capital grants, and program funding. While the government offers these forms of funding, the aged care recipient can also pay for aged care services only if they are able to do so.

Why Choose Iris Manor; How Are We Different?

Iris Manor provides all levels of care from low to high care with 24 hr nursing care onsite.  We do not charge the 3 different fees that are normally associated with government-funded homes.

At Iris Manor, there are no long term contracts, no lump sum RAD or DAP, simply a fixed weekly rate.  Came and see our facilities at Iris Manor and find out for yourself how good our place is for your loved ones.

Please call us today for an appointment on 1800 835 728 or send us an inquiry.