The Australian Labor Party (ALP) is promising to put a cap on home care fees should it win the May federal election, with a date for the poll to be selected within days.
It says it will stop rorts in administration and management fees, and providers will have to report monthly to users on where their money goes.
It means home care users can be confident their money is going directly to care—not management bonuses, new office fit-outs or glossy marketing schemes, Labor said.
The announcement comes on top of ALP leader Anthony Albanese’s plan to reform the aged care sector.
“Labor is calling time on aged care providers who rip off vulnerable Australians,” Albanese said.
“We know home care is a vital part of the aged care system—that’s why we want to make sure it is operating as it should, in the best interests of Australians.”
It follows Labor’s announcement that it will implement a crackdown on dodgy residential aged care providers, implementing tough penalties for systematic abuse and neglect.
Research from the Grattan Institute think tank shows that around 25 percent of home care fees are taken up by administration and management costs.
In evidence to the aged care royal commission, it was reported that such costs can be as high as 50 percent of the fees charged to users.
The ALP argues that the unacceptably high fees lead to senior and elderly Australians missing out on the care they need to help them remain living in their own home.
“It’s time users of home care packages got better value for money. Fees should be paying for high-quality care – not office work,” Labor’s aged care services spokeswoman Clare O'Neill said.
“Better accountability, better care, greater confidence. No matter which pathway Australians choose for their care, Labor will be there for them.”
