Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Link to this | Hansard source

Congratulations, Mr President, on your elevation to your position. My question is for the Assistant Minister for Social Services, Senator Fifield. I refer to the government's decision to axe the dementia and severe behaviours supplement. Is the minister aware of comments by Leading Age Services Australia CEO Mr Patrick Reid that:

… this action represents the Government turning its back on Australia’s most vulnerable people, their families and the industry that provides specialist quality care 24 hours a day.

Does the minister agree?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I thank Senator Polley for her question. The decision I took to cease the severe behaviours supplement for people with dementia was not one I took lightly. But the situation this government inherited was one where the previous government in the last financial year had budgeted for a scheme of $11 million applying to 2,000 people. Rather than the scheme designed by the previous government applying to 2,000 people and costing $11 million, in the last financial year it was going to apply to 25,000 people—a slight overrun—and it was going to cost $110 million. The projections for the next four years were that, rather than costing $52 million, the scheme was going to cost $780 million. Let me repeat that: over the next four years the projections were that, rather than costing the $52 million budgeted by the former government, it was going to cost $780 million. In fact, over 10 years it was going to cost $1.5 billion.

This is yet another example of a scheme that was badly designed by the previous government. It is important to emphasise that this was called a dementia and severe behaviours supplement. This was not the base funding for aged-care providers to support people with dementia. About half of Australia's 180,000 people in residential care have dementia. This was for people with severe behaviours related to dementia. This was a badly designed scheme with a serious cost overrun and, as a responsible minister, I could not sit back and do nothing. (Time expired)

Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware of comments by the CEO of Aged and Community Services Australia, Adjunct Professor John Kelly, that the government's decision to axe the dementia supplement is:

… more than tragic. I think it's a travesty.

Do you agree, Minister?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I agree that the planning and design by the previous government was more than tragic—absolutely. It is important to put this in context. This was not a minor miscalculation; this was designed and budgeted for—$11 million— in the last financial year by the previous government but, in fact, it was going to cost $110 million over the next four years. Let me repeat that: the projection was that it would cost not the $52 million budgeted by those opposite but $780 million. Over a decade, it was going to cost $1.5 billion. This was not a situation of my creation; it was a situation I inherited. It would not have been the responsible thing to sit back and do nothing.

Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the rising incidence of dementia in Australia, why is the government axing a supplement which provides a lifeline to those who need it most?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I should also remind colleagues that one of our election commitments which we are delivering in full is $200 million for dementia research. It also bears repeating that the severe dementia behaviours supplement was not base funding for aged-care providers who are supporting people with dementia. It was intended for a very specific and narrow cohort—people with severe behaviours in relation to dementia.

I should also indicate that in the budget we increased the base subsidy to aged-care providers by 2.4 per cent. Indeed, we repurposed $1.1 billion about which the previous government said to aged-care providers, 'You can have this only if you enter a union enterprise agreement.' We thought that was not fair, so we said to aged-care providers—

Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I would like you to draw the minister to respond and to be relevant to the question of why the government is attacking those people who are most in need.

Stephen Parry (President) Share this | Link to this | Hansard source

The minister has 11 seconds left to answer the question. I draw the minister's attention to the question.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I am being remorselessly relevant to the question. We said to aged-care providers that we would give them back that $1.1 billion. We have. They know better how to spend it— (Time expired)

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.