Peak body claims Government’s ‘Business Improvement Fund’ a small step in the right direction

Release date: 31 Jan 2020

The peak body for non-profit aged care providers Aged and Community Services Australia (ACSA) has welcomed the Government’s announcement of a Business Improvement Fund (BIF) but cautioned that much more still needs to be done to fix Australia’s residential care system.


The BIF will provide $50 million worth of funding to support residential care providers via short-term grants and will be targeted at providers at risk of service failure.

ACSA CEO Patricia Sparrow said the aged care sector welcomes this assistance to providers, but also warned it is not a quick fix for an industry that is clearly struggling.

“Recent analysis showed residential care providers are having to cut costs in order to remain viable, so while we welcome this funding, we’ll continue to ask the Morrison Government to do more,” said Ms Sparrow.

Recent reports released by the Aged Care Royal Commission showed Australia spends a lower proportion of GDP on long-term care than many comparable countries including Denmark, Sweden, Japan, the Netherlands, England and Canada and this quickly needs to change.

“It is absolutely vital that the Government commits to sustainable funding and structural change that gives residential care providers the long-term security they need to keep supporting our ageing population.”

The Aged Care Royal Commission has revealed many of the problems the aged care sector is facing and demonstrates what is happening to this critical industry due to a lack of support.

“The Royal Commission gives us a rare chance to ensure aged care receives the long-term funding and support it needs, and the Government needs to grab that chance with both hands.”

Accountancy firm StewartBrown’s recent report revealed more on the dire financial situation of the aged care sector can be viewed here.


Media contact: Annette Glenister - 0400 772 722

As the peak body representing church, charitable and community-based organisations providing accommodation and care services to older people, people with a disability and their carers, ACSA can be contacted for comment on issues affecting the industry.

Areas ACSA may provide media commentary on include:  

  • Aged care reforms
  • Residential aged care
  • Home care
  • Independent and retirement living
  • Housing for older Australians
  • Palliative care
  • The aged care workforce in Australia


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