What does the Mid-Year Economic and Fiscal Outlook mean for over-60s?

Earlier this year Treasurer Josh Frydenberg vowed to get Australia’s finances back in the black, promising to deliver a surplus of $7.1 billion when he announced the Federal Budget back in April.

However, handing down the Mid-Year Economic and Fiscal Outlook on Monday, Frydenberg confirmed that forecasted figure has now dropped to $5 billion, while the predicted surplus for 2020-21 has also fallen from $11 billion to $6.1 billion.

But, as the majority of the country focuses on employment growth and budget surpluses, what does today’s report mean for older Australians?

While the biggest forecast announced this morning was of course the recalculated surplus figure – which the treasurer claims has reduced by more than $2 billion as a result of a weakened global economy and challenges such as drought and bushfires – the report also contained important information regarding additional funding for aged care.

“All Australians deserve safety and quality care as they age, so the Government is taking steps to strengthen the aged care system while the Royal Commission continues its work in the lead up to its final report next year,” Frydenberg said in a statement this morning.

“The Government will provide $624 million to respond to the Interim Report of the Royal Commission, and to build on recent improvements to standards, oversight, funding, and transparency in the care of older Australians.”

This funding package includes $496.3 million for the release of an additional 10,000 home care packages, while $25.5 million has been dedicated to improving medication management, including reducing the use of chemical restraint in aged care facilities. The government have also vowed to improve dementia training and support for those working within the aged care sector, with additional funding of $10 million.

However the funding is part of a package already being provided for aged care across the country, with Frydenberg adding that total spending on the sector is expected to rise from $21.4 billion this financial year to $25.4 billion in 2022-23.

Responding to MYEFO this morning, Leading Age Services Australia warned that an “aged care emergency” could occur in 2020, calling for urgent reforms and targeted investment to help older Australians access the care services they need, where and when they require them.

In a joint statement released this morning, the national aged care body said: “While the Royal Commission into Aged Care Quality and Safety continues its crucial work, the sector says additional targeted transitional support is critical, to make sure seniors continue to receive adequate care, especially in regional areas.

“Many providers cannot wait for the implementation of the final Aged Care Royal Commission recommendations, which will be delivered in November 2020 … The fact is that without more assistance in the short term, some residential providers will find it almost impossible to continue delivering quality care in their communities.”

A LASA spokesperson added: “Our older Australians and their loved ones need a strategy that sets a maximum wait time for people allocated care, with a measured scheme to reduce the delay.”

Budget update in summary:
❌ higher unemployment
❌ slower growth
❌ weaker wages growth
❌ debt more than doubled by Libs
❌ no plan to turn things around#myefo #auspol #ausecon

— Jim Chalmers MP (@JEChalmers) December 15, 2019

Reacting to the announcement on Monday, Shadow Treasurer Jim Chalmers took to Twitter to slam the Morrison government’s financial management and said they have “no plan to turn things around”.

While Greens leader Richard Di Natale raised the issue of the rate of Newstart, writing: “What if instead of a wafer thin surplus, we raised the rate of Newstart?”

Others criticised the government’s “spin” on Monday morning, including one Sydney Morning Herald reporter who wrote: “He [Frydenberg] started with the line that, despite a result that laughed at his forecasts made only eight months earlier, the economy remains ‘remarkably resilient in the face of significant global and domestic economic headwinds’.

“That’s a spin doctor’s way of saying ‘it could have been even worse’. Arithmetically true, but cold comfort.”

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