A central Victorian shire has chosen to axe its aged care support instead of adapting to the federal government's new arrangements.
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Macedon Ranges Shire has opted not to become a support at home provider under the federal government's adaptations to the service.
Instead the shire will explore other ways to support its elderly population before it terminates the program on July 1, 2023.
Shire chief executive Bernie O'Sullivan said council will not proceed with the support at home program because it was not in the best position to continue providing these services to the 400 people who currently use them.
"Council has been reviewing its own service delivery in aged care since reforms began to be introduced 10 years ago, which includes the way home support programs are funded, planned and delivered," he said.
"The aim of these reforms is to increase the number of service providers, and create more choice and flexibility for clients.
"These reforms encourage providers to have size, scale and efficiencies, making it difficult for councils to continue delivering direct care services."
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The Australian Services Union says the shires decision risks the collapse of in-home aged care in the Macedon Ranges.
By privatising aged care services in the region the system will collapse in on itself and elderly residents will be stranded, union secretary Lisa Darmanin said.
"This decision will result in highly trained and dedicated in-home aged care workers being pushed into insecure work on lower wages and reduced conditions," she said.
"The experience at other councils who have privatised in-home aged care is long term workers have refused to accept the insecure work and lower employment conditions offered by private providers and the services to elderly residents have collapsed."
The federal government changes to in-home aged care
The first bill passed by the new federal government extended council-run, in-home care programs by 12 months to July 1, 2024.
The additional 12 months is designed to allow the current federal government to construct a more viable home care system.
Major changes introduced in the aged care reforms include an additional 40,000 Home Care Packages this financial year and a $25 million funding increase to expand access to goods, equipment and assistive technology to support older Australians.
In early August, Bendigo MP Lisa Chesters said she hoped the extra funding and additional packages would allow councils to continue their current services without the need to disrupt current set-ups.
"We've known for some time the home care packages and the home care delivery of services have been patchy and, in some areas, in crisis," she said.
"We moved procedural motions to make sure this got dealt with first because it is one of the most urgent issues the royal commission into aged care handed down in its report."
On Wednesday, Ms Chesters said the shire's decision was disappointing and urged it to change their decision.
"Federal Government funding will not end on June 30, 2023 as they have suggested," she said. "On July 28, the new Labor Government announced it will extend the funding to local government with recommendations by the Royal Commission into Aged Care Quality and Safety.
"Current arrangements continue uninterrupted as if nothing has changed.
"There's a real risk that council's decision will leave vulnerable older residents without support.
"Current clients receiving Support at Home services through Macedon Ranges Shire may not have alternative arrangements in place via the Home Care Package program or similar program before council ends their service.
What this means for Macedon Ranges residents in the program
Mr O'Sullivan said making the decision now meant staff and clients would be "as prepared and supported as they can be for the change".
A staff consultation process, set out in the councils enterprise agreement, will now begin.
"Our goal now turns to continuity of care until our current contract ends in mid-2023," Mr O'Sullivan said, "and ensuring our clients experience a seamless transition to new service providers when the time comes.
"We are committed to providing whatever support we can to both staff and clients over the coming 10 months, as we prepare for this change."
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Less than five per cent of the shire's almost 10,000 people aged 65 or over access Commonwealth-supported aged care services through council.
Macedon Ranges Shire mayor Jennifer Anderson said the council is focused on supporting an increased number of older people in the region - outside of the support at home model.
"Council is keen to expand the reach of the work we will do in the future to support an increased number of older people in different ways," she said.
Ms Anderson said other areas of council that support older residents would continue to be invested in including social connection for ageing residents, improving infrastructure, advocating the important role older residents play in the community and ensuring support services required are attracted to the shire.
Council will consult seniors across the Macedon Ranges in the coming month about what is important to them.
The consultation will help develop a new model of information, advocacy, activities and supports for residents of the shire.
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