Media Releases


July 12, 2021

At Labor’s request, the Parliamentary Budget Office (PBO) independently costed the effect of Scott Morrison’s Budget changes to the Aged Care Funding Instrument (ACFI) between 2016/17 and 2020/21.  

The PBO estimated a gap in the order of between $2.1 billion and up to $2.5 billion from what the total funding position otherwise would have been.  The PBO chose to present a range of estimates because of the uncertainty arising from interactions with other budget changes and economic developments in the period. 

Because of the decisions Scott Morrison made as Treasurer in 2016/17, billions have been cumulatively stripped out of the system over the past four financial years.

This is funding that would otherwise have gone into this vital system - a system currently in crisis - to look after our oldest and frailest citizens.
The Coalition Government have received over 20 expert reports into aged care since 2013. The Coalition have known that older people were suffering in aged care but, rather than fix the problems, as Treasurer, Scott Morrison cut funding. 

This is an enormous amount given the Royal Commission has identified the shocking level of resourcing neglect aged care has experienced in recent years.

The 2021-22 Budget forward estimates period impact of Morrison’s decision also shows that the Government’s recent budget spend of $3.2 billion to increase the Basic Daily Fee for providers doesn’t fill the up to $5.1 billion hole created by their ACFI changes.

Older Australians, their families and hardworking carers can’t trust Scott Morrison to fix his broken system.

The Royal Commission into Aged Care Quality and Safety graphically highlighted the tragic outcomes of this Government’s neglect including maggots in the wounds of residents and two thirds of residents being malnourished.
After 8 long years of neglect, another 3 years of Scott Morrison won’t fix aged care.

Labor deeply believes that older Australians, who helped build this country and have earned our respect, deserve so much better from the aged care system and the Federal Government.
The Morrison Government’s self congratulatory 2021 budget won’t fix the aged care crisis.

They have neglected aged care, they have cut billions from aged care and they have shown zero contrition for any of it. They should be ashamed of themselves.