Age Care Minister Announces $50m Business Improvement Fund
The Aged Care Minister Richard Colbeck has just announced a $50m Business Improvement Fund. It’s here to assist providers who need support in upgrading their business and for those wanting to maintain services, while they transfer operations to another provider. Is the fund an option for your age care organisation? Ian Hamer explains
With the Royal Commission in full swing and the demands placed on providers never being greater, many are struggling to maintain compliant operations. These problems are particularly acute in regional and rural Australia, which have only been exacerbated in recent months in areas affected by bushfires.
The Business Improvement Fund (the Fund) is being established to provide short-term targeted grants to providers that are at risk of severe financial difficulty.
The underlying policy is for the government to identify the providers most at risk of financial failure, which would cause the greatest impact on residents. Clients of the Business Advisory Service (BAS) operated by PwC will be prioritised.
Grants will support eligible aged care providers to do one of the following:
- Implement improved business strategies (e.g. such as those identified by the BAS, including restructuring business operations and the upgrading of financial management and IT systems)
- Maintain services while the aged care residence is sold to a new provider who can make it viable and sustainable
- Where there is no other option, close down the home in a safe and orderly manner and transition residents to alternative suitable facilities.
The Fund will not provide grants to cover ongoing operational costs.
The grant and successful application of allocated funding have the potential to assist age care providers significantly at a critical junction. However, it is not guaranteed. Anchor Excellence has a highly skilled team that can assist eligible businesses to prepare its Fund application and assist it through the business improvement, wind down or sale process.
If you have any more questions relating to the Fund or age care operations, please contact us to discuss your organisation’s needs.