TRANSCRIPT
Interview with Tom Connell, Sky News
16 September 2024
Topics: The Government’s aged care reforms
E&OE…………………………………
Tom Connell: It appears there will be a deal between the two major parties on aged care reforms. Chief within that is making people who can afford it pay more. This is a line from Labor, seemingly supported by the Coalition, to make the system more sustainable. Joining me live is Shadow Health and Aged Care Minister, Anne Ruston. Thank you for your time. So reports - Not fully over the line, what can you tell us about this? There will be a deal, but it's details to be thrashed out?
Anne Ruston: Well, what we gave the Government last week was enough of agreement so that they actually would get the Bill into the Parliament, because one of the things that we've been critical of the Government for quite some time is the fact that they were having conversations behind closed doors, and we thought older Australians, their families, in fact all Australians, needed to have a look at what the Government was proposing. So we've agreed that we won't amend the financial framework conditions that are in Chapter Four of the Bill. But, you know, if the Government has got any surprises that are in subordinate legislation or additional information that comes out, we've reserved our right to make amendment [interrupted].
Tom Connell: So the point there is the core elements have been agreed to. So this means, for example, self-funded retirees, I think the most extra they pay a year is about $15,000 a year. The average stay from someone, this is in an aged care home, is 2.2 years. So, were you sort of weighing that up and saying, we don't want something too onerous and this landed in the right area for you?
Anne Ruston: Well, we fought really hard to get a heap of concessions, which we got, which related to grandfathering everybody who's existing in the system so that anybody who's in the system now won't pay a cent more. We argued around caps, because I think people deserve to have certainty about what would be the maximum amount they'd ever be asked to pay. We made sure taper rates were lower, and we also made sure that the Government committed to being the majority funder for aged care going into the future, particularly the clinical care component of it. But we know we've got a system under pressure. It's undeniable that we've got real pressures, with aged care homes closing because they are not financially viable. So something had to happen. So we gave the Government a level of support so that they'd be prepared to move forward.
Tom Connell: The lifetime cap still goes up quite a lot. Is the thought that this will essentially, what it'll actually do - Because you're talking about a self-funded retiree in particular that pays more, they own their own home - It's going to reduce what they pass on to their kids a bit, rather than affect their lives too much. Is that the effect, realistically, of this?
Anne Ruston: Well, what we were seeking to do through the process is to say to the Government, we accept that people are going to need to pay more for the kind of care they want into the future. We're seeing people's desires about how they want their aged care changing, and we know people want to stay at home for longer and preferably stay at home. So there were changes that needed to be made, but we were particularly keen - Everybody needed to pay a little bit more, and it's not just self-funded retirees. The proposal the Government's put on the table will see every Australian in care pay a little bit more than they are now.
Tom Connell: On the pension, a lot less, but yeah, there's a sliding scale. Obviously when your part-pension, for example, goes all the way up there. And in terms of the viability of the system, how confident are you that this puts it on the right footing? Because there are concerns around homes closing and some wondering whether they will close in the future. A lot of money is either being saved or going into home care packages. So how much, you know, how much does this make the homes out there viable?
Anne Ruston: Well, we've spoken to a lot of aged care homes, and they are almost universally saying that this will make a significant difference, and many of them are saying they'll put a shovel in the ground tomorrow as a result of the certainty.
Tom Connell: Right, that big of a difference.
Anne Ruston: Because it provides them with certainty into the future. But the other thing that we sought, from a concession, was to get a package for rural, regional and remote Australia. There was nothing in the original package for them, and we've sought not only additional capital funding, but the Government has agreed that they are going to put additional operational funding in.
Tom Connell: Because the other thing we want is good aged care.
Anne Ruston: Yes.
Tom Connell: People, hearing some of the stories, remember the Royal Commission that triggered all of this. They want a real life there.
Anne Ruston: Absolutely, and what we want to make sure is that the desires and expectations of older Australians, about what they want for their aged care into the future, is able to be delivered. And so, that's why we are seeking to make it sustainable by providing additional funding.
Tom Connell: We'll wait to see the details. You never know when something blows up here in Parliament, but it sounds like there's genuine agreement. Anne Ruston, appreciate your time today.
Anne Ruston: My pleasure.
ENDS
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