Aged care funding cut is a risk to older Australians and providers: CHA

In brief

Catholic Health Australia (CHA) warned that a government decision to reduce real-terms funding for aged care providers puts the quality of care for older Australians at risk. Alex Lynch, the director of aged care at CHA, stated that the decision must be revisited immediately.

The warning follows a decision to increase the Australian National Aged Care Classification price by only 2.55 percent starting October 1. Lynch said this increase falls below inflation and does not cover the rising costs of care. He noted that this funding cut threatens access to sustainable care while the sector is already struggling. Catholic providers have expressed particular concern regarding the change.