Appendix E: Aged care workforce data Workforce supplement The 2012-13 Budget included an allocation of $1.2 billion over five years from 201213 (including $471.7 million in 201617) to address workforce pressures in aged care. The Workforce Supplement was paid to aged care providers who met the terms and conditions of the Workforce Compact, which was an attempt to improve wage rates for aged care workers in order to retain workers and also to encourage more workers into the industry. As part of the 2013-14 Budget, the Government redirected funding from the Workforce Supplement into the general pool of aged care funding. The offsets included: Residential, home care and flexible care providers received an increase in funding of 2.4 per cent in their basic care subsidy from 1 July 2014. Eligible grant programs such as the Commonwealth Home and Community Care Programme received a 2.4 per cent increase in their funding. Eligible regional, rural and remote providers received a 20 per cent increase to Viability Supplement payments from 1 July 2014. Wage costs as a proportion of provider expenses As ACFA has previously reported in its annual reports on the funding and financing of the aged care sector, wage costs (e.g. salaries) represent the greatest proportion of provider expenditure and so costs in this area can have a significant impact on financial performance. In home care, salaries comprise the greatest proportion of expenditure across all types of provider. In 2014-15 salaries represented 60 per cent of total expenditure. Proportion of expense types reported by home care providers, 2014-15 Similarly, in residential care employee expenses represent the highest proportion of provider expenditure. In 2014-15, staff costs represented 67 per cent of total expenses (up from 66 per cent in 2013-14), with costs, which include building repairs and maintenance ‘other’ expenses, rent, utilities and costs associated with employment support activities, accounting for 27 per cent. Depreciation and interest costs account for the remaining 4.9 and 0.9 per cent respectively. Table 5.1 below compares the change in breakdown of expenses between 2013-14 and
Appendix E: Aged care workforce data Workforce supplement The 2012-13 Budget included an allocation of $1.2 billion over five years from 201213 (including $471.7 million in 201617) to address workforce pressures in aged care. The Workforce Supplement was paid to aged care providers who met the terms and conditions of the Workforce Compact, which was an attempt to improve wage rates for aged care workers in order to retain workers and also to encourage more workers into the industry. As part of the 2013-14 Budget, the Government redirected funding from the Workforce Supplement into the general pool of aged care funding. The offsets included: Residential, home care and flexible care providers received an increase in funding of 2.4 per cent in their basic care subsidy from 1 July 2014. Eligible grant programs such as the Commonwealth Home and Community Care Programme received a 2.4 per cent increase in their funding. Eligible regional, rural and remote providers received a 20 per cent increase to Viability Supplement payments from 1 July 2014. Wage costs as a proportion of provider expenses As ACFA has previously reported in its annual reports on the funding and financing of the aged care sector, wage costs (e.g. salaries) represent the greatest proportion of provider expenditure and so costs in this area can have a significant impact on financial performance. In home care, salaries comprise the greatest proportion of expenditure across all types of provider. In 2014-15 salaries represented 60 per cent of total expenditure. Proportion of expense types reported by home care providers, 2014-15 Similarly, in residential care employee expenses represent the highest proportion of provider expenditure. In 2014-15, staff costs represented 67 per cent of total expenses (up from 66 per cent in 2013-14), with ‘other’ costs, which include building repairs and maintenance expenses, rent, utilities and costs associated with employment support activities, accounting for 27 per cent. Depreciation and interest costs account for the remaining 4.9 and 0.9 per cent respectively. Table 5.1 below compares the change in breakdown of expenses between 2013-14 and
acfa_report_part_two_-_appendices.docx