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Fact Check: Did the government cut $1.2 billion from aged care funding?

Publisher
Australian Labor Party Budget Aged care
Description

Australia's aged care sector has come under close scrutiny following concerns that some providers have placed profit before the welfare of the elderly. Labor says Scott Morrison, as treasurer, slashed funding to the sector. Opposition Leader Bill Shorten said Scott Morrison, as treasurer, slashed funding to the sector, claiming he had cut $1.2 billion from aged care. RMIT ABC Fact Check found Mr Shorten's claim is misleading. In Mr Morrison's first year as federal treasurer ' that is, 2016-17 ' total Commonwealth funding for aged care (excluding the pension and other forms of income support for seniors, but including a range of other programs) was $17.4 billion. That represented an increase of more than $1 billion over the previous year. The increase came despite a decision to pare $1.2 billion of "efficiencies" over four years. The overall level of Commonwealth funding provided for aged care has increased on an annual basis for at least the past decade. Analysis by Fact Check shows funding has increased across a range of measures: in nominal dollar amounts, in real terms (after adjusting for inflation), as a proportion of total expenses, and as a dollar amount per aged care resident per day. Rather than representing a cut, the decision to carve out $1.2 billion of "efficiencies" could rather be characterised as an attempt to better target aged care funding, with spending continuing to rise in real terms. An adjustment to future spending does not represent a "cut" when the overall level of spending continues to rise.
Verdict: Misleading

Publication Details
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All Rights Reserved
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