Council Calls on Federal Government to Address Aged Care Crisis
Published on 07 November 2024
Upper Hunter Shire Council has taken a decisive step in advocating for urgent Federal support for aged care facilities in rural areas, following increasing financial strain on small councils to meet escalating compliance costs. Mayor Maurice Collison has written to the Federal Minister for Health and Aged Care, Mark Butler, requesting immediate and ongoing assistance to prevent further closures and financial losses in rural aged care.
In his letter, Mayor Collison highlights the unsustainable position of small councils tasked with operating aged care facilities, like Merriwa’s Gummun Place Hostel, a 16-bed facility which serves an average of 14 residents. Council is currently absorbing an annual loss exceeding $400,000 to keep Gummun Place operational—an expense that far surpasses the entire annual rate income from Merriwa, a town of just over 1,000 residents.
“We simply cannot continue to subsidise this facility at such a high cost while still providing essential services like libraries, swimming pools, and sports facilities that our community relies on for health and wellbeing,” said Mayor Collison. “The Federal Government has been lax in its support for councils running aged care services. Without urgent assistance, Gummun Place and similar facilities face an uncertain future.”
The letter points to the closure of aged care facilities in neighbouring regions as further evidence of the crisis and calls for the Federal Government to address this gap by offering sustainable funding and support.
Federal Member for New England, Barnaby Joyce, echoed the Mayor's frustration, attributing the lack of support to Labor’s neglect of regional Australia, “It shouldn’t take a city postcode to get basic aged care. But here we are—Labor seems to think the regions are out of sight, out of mind. People in the New England deserve the same care as those in Sydney, and it’s time the Federal Government realised that. If they don’t step up soon, we’ll keep seeing rural facilities shut down, and families left high and dry.”
Upper Hunter Shire Council intends to issue expressions of interest to lease, operate, or potentially purchase Gummun Place Hostel to help secure its long-term viability. However, without a shift in Federal support for regional aged care facilities, the future of these essential services in rural communities remains at risk.
A copy of the Mayor's letter can be viewed here.(PDF, 147KB)