By Daniel Gannon, Executive Director, Retirement Living Council
It’s a frightening scenario for pensioners living in retirement villages in Australia that so many political decisionmakers do not know, forget, or simply ignore who is really paying for services.
While Australia’s retirement living sector is regulated through multiple and different State and Territory legislative and planning instruments, the retirement living industry does not receive any direct form of assistance from the government (any government).
For most retirement villages, residents pay for permanent access to an age-friendly home, then ongoing services are charged on a cost-reflective basis. Wages are the biggest recurrent cost, largely because village staff provide a range of services, including community, health and wellbeing services.
Unsurprisingly, a “significant” increase in wages arising from a favourable outcome of the Fair Work Commission Work Value Case (Aged Care) could cause “significant” hardship for senior Australians on fixed incomes (ie, pensioners).
Of increasing concern, the Minister for Aged Care, the Hon Anika Wells MP, last week told the Retirement Living Council and Retirement Village Residents Associations that pensioners living in retirement villages were on their own, again.
“The Government’s funding commitment in relation to the FWC work value case extends only to the aged care services funded by the Commonwealth, such as residential aged care and home care packages,” said the Minister.
Like most Australians, pensioners and self-funded retirees thought the new Government would “fund the outcome” of the Fair Work Commission Work Value Case (Aged Care Industry) – and so did all other stakeholders.
“A decision of the Fair Work Commission to increase minimum wages in the aged care sector must be fully funded by the Federal Government and linked to transparency and accountability measures as to how funding is used,” said the Consensus Statement (Attachment C).
It was the centrepiece of a well organised political campaign over many years. It was a key election promise. And, even after the election, the new government was campaigning for a “significant” pay rise for very worthy workers. It even promised a blank cheque to underwrite a favourable outcome.
There were no “half-pregnant” caveats and clauses.
“We haven’t put a number to it because traditionally governments don’t … that is for the commission to decide, exactly what percentage the work value case is worth, but we have agreed that we will fund it no matter what the decision,” said the Minister.
The Aged Care Award covers employers, employees and those who provide accommodation and care services for older Australians in independent living units, retirement villages and any other residential accommodation facility.
“Examples of employees covered by the Aged Care Award include: personal care workers; cleaners, laundry hands; drivers; food services employees including cooks; receptionists and administrative staff; grounds maintenance employees including gardeners and handymen; activity coordinators (unqualified); and interpreters,” says the FairWork Ombudsman.
Ahead of the next stages of the Commission’s proceedings, the RLC will continue raising awareness of our issues and concerns with key members of the 47th Parliament of Australia.
In really simple terms, we just want this Government to live up to its assurances to the Commission.
“The Commonwealth is the principal funder in the aged care sector. The Commonwealth will provide funding to support any increases to award wages made by the Commission in this matter and that will help deliver a higher standard of care for older Australians.” the Government told the Commission.
And we just want this Government to keep its election promise to older Australians and their carers.
“We’ll support the workers’ call for better pay at the Fair Work Commission. And a Labor Government will fund the outcome of this case,” the then-Opposition Leader, now Prime Minister, told Parliament.