Proposed new laws seeking to bring in greater financial transparency in the residential aged care sector have been referred to a parliamentary Inquiry.
The Private Member’s Bill, which was introduced by Federal Member for Mayo Rebekha Sharkie, if passed, will require aged care providers to disclose their income, costs of food and medication, staff and staff training, accommodation, administration and monies paid to parent bodies in annual financial transparency reports to the Aged Care Quality and Safety Commissioner.
The Bill has been referred to the Standing Committee on Health, Aged Care and Sport but a date for public submissions has not been set.
Ms Sharkie’s Bill mirrors legislation introduced into Federal Parliament by her Centre Alliance colleague Senator Stirling Griff. That Bill is being considered by a Senate inquiry which is scheduled to report in late November.
“In my time in office, I have been approached numerous times by constituents deeply worried about the quality of the food served to their loved ones and the number of staff available to help with feeding and hygiene,” Rebekha said.
“This legislation will enable families of loved ones, stakeholders and the public to have a clear view, for the first time, on the proportion of income that providers actually spend on costs of care and how much is just being pocketed or wasted.
“Australia cannot wait for the final report of the Royal Commission and the delays in dealing with the pandemic to have greater transparency about the financing of the aged care sector. We must act now.”
Mr Sharkie said the large residential aged care providers in Australia have received billions of dollars in funding from the government and have paid out millions to shareholders.
“We’ve heard allegations of directors of aged care companies who have had the ability to use their funds to buy luxury cars,” she said.
“There’s money in offshore bank accounts. We hear allegations of where rent is more than double the commercial rate, with money being funnelled back into church coffers.”
“At the other end of the spectrum, reports carried out by Stewart Brown Advisor earlier this year – and pre-Covid – show that 75 per cent of aged care providers in rural and regional areas are operating at a cash loss and questions remain as to whether small community-based providers can remain viable,” Ms Sharkie said.
“There are a number of not-for-profit facilities in Mayo that were built thanks to the generosity of local communities and are being sustained by the hard work of local communities. This precarious situation cannot continue indefinitely.
“Clearly, something has gone horribly wrong in the financial management of the aged care sector but without shedding a light on each aged care facility, we won’t know the extent of the damage.
“My Bill simply seeks information from providers so the Government, and the public, will have a clearer picture of how facilities are resourced.
“This will be crucial if we as a Parliament are to engage in sustainable reforms to the sector that will improve the experience and treatment of vulnerable elderly people living in residential aged care.”
Image: Eclipse Images, iStock.
About time! This can’t come soon enough. I’m quite frankly terrified I will end up in one of these currently dreadful places. We don’t all have families to speak for us either, some of us are on our own. Thankfully I never had to put my parents in one but I can’t say that I won’t end up in one myself in the future. Any other business or organisation has to show transparency with what they do with their money. The fact that aged care have got away with doing whatever the hell they want for so long absolutely has to change. They are good at taking money but dreadful at saying where it’s all gone (mostly because it goes into personal pockets!). I hope like hell this bill gets passed. Please Rebekah make it happen. You will be helping all those who are currently in aged care and for those of us in the future.
All true.
Every facility has to deliver independently audited accounts to the government each October. These accounts clearly show how every single dollar is spent!
The reason the government doesn’t release the data is because that would show how their massive funding cuts in 2015, tax increases and blocked CPI indexing has made homes unviable and brought about the current crisis in residential care facilities!
The liberals and in particular Scott Morrison broke it and to fix it would acknowledge that they broke it in the first place!