Federal Budget announced

Last night the Federal Budget was handed down, with welcome stimulus to be delivered through individuals, businesses and infrastructure. Disappointingly there have been no changes to the HomeBuilder scheme, which means that most retirement villages and land lease communities remain excluded from this initiative. There are no other initiatives in the budget that will directly encourage older Australians to consider rightsizing into a retirement living community. 

The Government has allocated $2 billion over four years in additional funding for aged care, which includes: 

• 23,000 home care packages at a cost of $1.6 billion – taking the total available number of home care places to around 185,0 in 2021 and providing 99% per cent of all those seeking an in-home aged care package with some form of in-home support. 
• $4.6 million over two years to review the support care needs of senior Australians who live in their own home and determine how best to deliver this care in the home.
• $45 million for a COVID supplement to assist all Commonwealth funded aged care providers (including home care providers) with COVID-19 operating costs, including a further lump sum payment to every residential aged care provider and continuation of the 30% increase to the viability and homeless supplements for eligible residential and home care providers. 
• $91.6 million for a new independent assessment workforce to implement the alternative aged care funding tool – the Australian National Aged Care Classification (AN-ACC).
• $11.3 million for training and support for aged care providers and carers of people experiencing behavioural and psychological symptoms of dementia.

In his speech the Treasurer noted there would be a comprehensive response and significant additional investment when the final recommendations of the Royal Commission into Aged Care are received in February.

Other relevant measures include:

• $2.6 billion for two additional Economic Support payments of $2 to pensioners and other eligible recipients.
• Changes to student visa holder (subclass 0) arrangements to remove pre-COVID 40 hour per fortnight work limits across a number of roles, including aged care with an aged care Approved Provider or Commonwealth-funded aged care service provider. 
• The Government will provide a targeted capital gains tax exemption for granny flat arrangements where there is a formal written agreement. The exemption will apply to arrangements with older Australians or those with a disability. 
• $28.3 million will be provided over four years from 2020-21 to extend the Be Connected Program until 2023-24. The program supports Australians aged over to gain skills they need to participate in the digital economy. 

The Government has made no changes to the maximum rate of the Commonwealth Rent Assistance.