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Wrapping reaction to Federal Budget and its implications for health and healthcare

This is a rolling wrap of reaction to the 2020-21 Federal Budget, which comes in the wake of the health, social and economic devastation of the coronavirus pandemic. It compiles reaction to developments affecting health and healthcare, with a focus on the social determinants of health and health equity.

Read Treasurer Josh Frydenberg’s Budget speech here.

See also this separate story on the Public Health Association of Australia’s response to the Budget, which said it “borders on disastrous”, and had “bypassed any substantial investment that will strengthen the whole nation’s future long-term health.”

See also this rolling wrap of responses from Aboriginal and Torres Strait Islander organisations on what is in and not in the Budget.


Budget still wanting on much-needed mental health reforms

Royal Australian and New Zealand College of Psychiatrists (RANZCP)

The RANZCP welcomed the $5.7 billion in mental health funding over the next year, and the government’s ongoing efforts to ensure the mental health and wellbeing of Australians through the pandemic and continued commitment to suicide prevention as a national priority.

However, “we  are still missing that fundamental investment in redesigning a mental health system we so urgently need now and into the future,” said RANZCP President Associate Professor John Allan.

Like many others in mental health, Allan said it was unfortunate that the government has still not made public the long-awaited final report of the Productivity Commission Inquiry into Mental Health which it received in June.

“Without the blueprint for comprehensive mental health sector reform it is difficult to move beyond short-term and discrete injections of funding,” he said, urging novel and bold solutions to address the major – and decades old – system weaknesses, fragmentation, inconsistencies and service gaps which factor too much in people’s mental health care experiences today.

He said:

This means real root and branch structural reform involving changes to the way in which federal and state governance and funding works so as to instill a better single source of funding to reduce waste and the duplication of services, and to improve care co-ordination and patient outcomes.

“There are also real issues with the maldistribution of our mental health workforce and the lack of access to services for people residing in regional, rural and remote areas that you might be able to find in the city.”

RANZCP said it was pleased to see the funding of an additional 10 training places each year for psychiatrists to specialise in veterans’ mental health care, and “cautiously” welcomed the government’s proposal to offer community-based mental health services through private health insurance.

It said other key announcements included:

  • Ongoing support for telehealth services
  • Funding for implementation of recommendations from the MBS Review Taskforce
  • Medicare-subsidised psychology sessions up from 10 to 20 sessions nationally ($100.8m)
  • Mental health support services for people impacted by the 2019–20 bushfire emergency ($50.3m)
  • Additional 10 training places each year for psychiatrists to specialise in veterans’ mental health care
  • Additional research program funding for the (Black Dog Institute and Everymind) Prevention Hub ($2.1m)
  • Expansion of Individual Placement and Support program to support young people with mental illness into the workforce
  • Increased availability of grief and trauma support services for aged care ($12.5m)
  • More aged care specialist counselling teams to provide expert psychosocial services ($11.3m)

Budget winds back refugee numbers, supports amid “offshore blowout”

Refugee Council of Australia

The Refugee Council said the Budget is another blow for refugees and asylum seekers, in the midst of growing international need and desperation for those already caught up in mandatory offshore detention in Australia and cutbacks in financial support to those living here.

The Council said the Budget outlined plans to cut the Refugee and Humanitarian Program back by 5,000 places from 2018-19 to 13,750 places per year.

This delivers a saving of $911.3 million over the next four years, but comes as the Department of Home Affairs has allocated $1.19 billion to spending on Australia’s offshore processing regime in 2020-21, following a $436 million (83%) blowout in expenditure in 2019-20, it said.

The Council says spending on financial support to people seeking asylum has been reduced to just $19.6 million in 2020-21, a reduction of $120.2 million in the yearly spend in just three years.

It said payments under the Status Resolution Support Service (SRSS) program have been reduced from $139.8 million in 2017-18, to $93.4 million in 2018-19 and $39.5 million in 2019-20. The $52.6 million allocated for this measure in the 2019-20 Budget was underspent by 25 per cent, largely by refusing support services to the majority of people seeking asylum regardless of need.

The Refugee Council said the Budget allocates $10.6 million over five years to implement the Government’s next five-year National Action Plan to Combat Modern Slavery 2020-25.

It says this funding will help equip businesses to manage supply chain risks, provide multi-year grant funding opportunities for organisations to deliver projects to combat modern slavery in Australia, and assist international partners to address modern slavery and human trafficking.


Budget fails to deliver real investment in nursing, midwifery and aged care

Australian Nursing and Midwifery Federation (ANMF)

The ANMF said that, despite the Treasurer’s acknowledgement of healthcare workers as ‘heroes, the Budget provides too little investment in nursing and midwifery and even less for aged care workers.

It questioned the Government’s claim of record funding for aged care, “given it is deferring action in chronically-understaffed nursing homes, until the completion of the (Aged Care) Royal Commission in early 2021.”

ANMF Federal Secretary Annie Butler welcomed the Budget’s funding for mental health services, the NDIS and PBS listings for drugs to treat a range of diseases, including ovarian cancer, leukaemia, melanoma and Parkinson’s disease, but she said there is  little investment in the nursing and midwifery workforce and even less for aged care workers ahead of the Royal Commission’s final report.

“It’s disappointing that there’s no action on job security and no action of improving wages and conditions for aged care workers. So, despite the much-vaunted promises of meaningful measures for working women, this Budget fails to deliver – the promised ‘thanks’ is just more words, not real action,” she said.

Butler said even the additional 23,000 extra home care places will do little to reduce the long waiting list of over 100,000 elderly Australians waiting up to 12-months or more for an appropriate home care package.

“If jobs are the cornerstone of the national economic recovery-plan, the ANMF is calling on the Government to act now and address the dangerously inadequate levels of qualified nurses and care staff working in aged care,” she said.


Downpayment for wider reforms and investment

Consumers Health Forum

The CHF said the Federal Budget provides for the beginnings of a “revolution” in health care that should be a down payment for wider reforms and investment to meet 21st century needs, including a further commitment to telehealth after the six month extension to March 2021 expires.

CHF CEO Leanne Wells said the COVID-19 pandemic had shown the strength, and the opportunities for more public investments to improve Australia’s health system, and proven that the link between the health of the community and of the economy is “inextricable”.

“The telehealth disruption shows that transformative change is possible in healthcare and we hold great ambition for the scope of services that will be possible under the 10 Year Primary Health Care Plan currently in development,” Wells said.

The CHF welcomed the $408.5 million addition to improve care and quality of aged care, but said “much more is needed in both funding and deep systemic reforms to this failing system”, including further investment in hoe care packages to meet the estimated 100,000 shortage in places.

The doubling from 10 to 20 the number of Medicare-funded psychological services would be readily used by many, “but will continue to mean many people without the means will be left unable to afford many psychologists whose higher fees are not covered by Medicare”.

Wells said she was pleased to see a strong rural health strategy, including new ways of providing health services to smaller connected rural communities across NSW, and that adequate provision is made for the manufacture and supply of a COVID-19 vaccine should one become available”.

CHF also welcomed changes to private health insurance, including extending the eligibility age of dependent children from 24 to 31 and allowing people with disability to remain on a family policy.

“A potentially transformative change to the overall health system is to extend health insurance cover to home and community-based care for mental health and general rehabilitation services,” Wells said, urging that this be clinically appropriate and be a choice of patients and doctors to make without pressure from health funds.

“Many people with insurance will welcome this change, but it will be outside the reach of most people who do not have private cover. Both federal and state governments need to do much more to ensure such timely innovations in health care are available to all Australians.”


Modest start to reversing under-investment of the past

Australian Healthcare and Hospitals Association (AHHA).

AHHA Chief Executive Alison Verhoeven said the Budget makes major and welcome commitments in health and aged care to address the major challenges Australia has confronted during the COVID-19 pandemic – “but there are many areas of significant need where more effort is required”.

‘Under-investment for too many years has weakened our health and aged care system. Tonight’s funding is a modest start towards reversing some of the poor decisions of the past,” she said.

Verhoeven welcomed the commitment to fund 23,000 additional home care packages in aged care, and to strengthen palliative care and the aged care workforce,” she said but she said much more work will need to be done in aged care over coming months and years “to ensure that the shocking experiences that some families and residents have endured, and the failures in quality, are fully addressed”.

‘While mental health investments in tonight’s Budget will improve access to care, it is disappointing that the Australian Government did not use Budget 2020 as an opportunity to implement mental health reforms proposed by the Productivity Commission,” including community based mental health services delivered within regions.

See a separate statement on mental health funding here, which notes the Productivity Commission delivered a final report on 30 June 2020, which has not yet been tabled.

‘We hope that when the Government responds to the report, they will look beyond the current COVID-19 pandemic to the ongoing long-term need for community mental health services’, Verhoeven said.

‘The challenges will be severe as people try to deal with job losses and economic insecurity, which can lead to emotional insecurity and ongoing mental health issues. The cuts to Job Keeper and Job Seeker will only compound these problems, which are likely to be long-term for many,” she said, urging the Government to “go hard and go now” on mental health.

Verhoeven said it was disappointing that there is only a limited focus in the Budget on strengthening preventive and primary health care, and no announcement on an Australian Centre for Disease Control which could have positioned Australia to better deal with future pandemic challenges.

Actuarial reviews of private health insurance arrangements would do little to address the immediate pain felt by policy holders whose premiums continue to rise while value continues to fall.

New funding for rural primary health care was welcome, though should be brought more quickly to scale.

‘Providing the additional funding needed to ensure our acute system can respond to the increased health demands as a result of the pandemic, as per earlier announcements, is a critical measure both to respond to the pandemic and to allow “business as usual” services to continue to be delivered effectively.

‘Health and medical research investment, like the additional funding for services, is an investment in our nation’s recovery’, she said.

See further AHHA statements on telehealth (“long term vision nowhere to be seen”) and on welcome investment for younger people in aged care.


Welcome support for “upstream factors” but mental health report must be urgently released

Suicide Prevention Australia

 
The national peak body for suicide prevention welcomed the fiscal measures announced in the Budget, to help increase the number of jobs and boost infrastructure investment, but warned of ongoing severe stress and suicidal risk caused by financial hardship.

“While there is no ‘new money’ for suicide prevention and mental health, the Budget tackles the upstream factors that the evidence tells us link with distress,” Suicide Prevention Australia CEO Nieves Murray said.

“Factors like unemployment, financial security and social isolation have been heightened by COVID-19 and the consequent recession.”

Murray said Suicide Prevention Australia was heartened to see the JobMaker Economic Recovery plan and the $4 billion hiring credit program, and extra cash payments for welfare recipients, but it called on the Federal Government to consider raising the base rate of JobSeeker in the longer term.

“We know there is a strong association between economic recession and increasing distress, particularly in high-income nations, therefore we need to assess the impact of removing the coronavirus supplement before it’s due to end,” she said.

Echoing other calls, Suicide Prevention Australia said it was urgently awaiting the release of the Productivity Commission’s mental health final report and the interim report into suicide prevention, “which have been sitting with Government for some time”.

“The Federal Government’s investment in suicide prevention to date has been welcome and necessary but we have no time to lose in making further, smart and timely decisions that will make a meaningful difference to the lives of people living across our communities.


Leaves too many behind, fails to act on social housing, climate action

Australian Council of Social Service

ACOSS says that while the Budget provides some glimmer for hope on jobs for young people, it comes as “a crushing let-down for many others without paid wor”.

ACOSS CEO Dr Cassandra Goldie said it has missed key opportunities for job creation initiatives that would have delivered public good, particularly in female-dominated sectors, instead focussing on projects that will take longer to get off the ground.

Of particular concern is that it failed to deliver a permanent, adequate JobSeeker rate — leaving more than two million people uncertain about their future beyond the end of the year, when income support rates will go to their pre-COVID levels ($40 a day for JobSeeker).

Goldie said ACOSS welcomed the wage subsidy for under-35s who are badly impacted in this recession, but said it must be “urgently extended to people of all ages who have been unemployed for a year or longer”.

“People without paid work will see no benefit from the income tax cuts brought forward in today’s budget, which mainly go to people who are lucky enough to have jobs, with the largest amounts going to people on higher incomes. There is also no income support in this budget for people on temporary visas, who have been left behind in the pandemic.

Goldie welcomed extra funding for aged care, including 23,000 aged care packages, but said this was “far short of what is required to meet the shortfall for home care”. So too was extra funding for community services, including mental health.

Goldie also lamented the failure to invest in social housing and clima