Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

I thank Senator Siewert for her question. I know that Senator Siewert does have a continuing interest in this area. Can I also indicate that at the conclusion of question time I can also table a letter to Mr Rod Young, the chief executive officer of the Aged Care Association Australia from the minister, Justine Elliot, in response to that open letter.

The annual indexation of aged-care subsidies is based on a formula introduced in 1996. The formula reflects minimum wage decisions and movements in prices in the broader economy and, of course, given the decision of Fair Work Australia not to increase the minimum wage through 2009, the application of this formula would have resulted in an increase in subsidies of substantially less than one per cent. To lessen the impact on aged-care providers the government adjusted the formula, resulting in indexation of subsidies for 2010 to 2011 of 1.7 per cent. Of course, in accordance with the recent decision of Fair Work Australia to increase the minimum wage—which is the first since 2008 and which will benefit more than 1.45 million Australians who rely on awards to set their pay—and in accordance with long-standing practice, the most recent decision will be factored into future outcomes.

I also welcome the opportunity to look at our record as against the previous government’s record on that. Under this government total funding for aged care and community care has increased by nearly 30 per cent, or more than $2.4 billion. In 2010-11 total funding will increase again to $10.8 billion, with nearly $7.4 billion of that for residential aged care. The opposition do carp about their role— (Time expired)