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Labor to commit to aged care services review, but 'not in a position' to reverse budget cuts

The Federal Opposition will commit to a major review of the way aged care services are provided and paid for, but says it is not in a position to reverse $1.2 billion in savings made in the federal budget.

Key points:

  • Labor says it will review the Aged Care Funding Instrument modelling

  • Shadow Minister for Ageing Shayne Neumann promises measures to create an "age friendly" nation

  • Labor has not attached a cost to its policy, but said the details would be provided before the election

The Government said the changes to the funding formula for aged care providers were in response to "continued higher than expected growth" in the payments.

"Labor actually is not in a position to reverse those cuts," the Shadow Minister for Ageing Shayne Neumann told AM.

"What we're in a position to say is we will change the approach that we undertake across this space, we're in a position where we will do a review of the ACFI (Aged Care Funding Instrument) modelling, because that's what the sector wants."

Mr Neumann will announce Labor's policy to the National Aged Care Alliance today, promising measures to create an "age friendly" nation.

He said that would include a national strategy to "harness the economic and social potential of older Australians", and a repurposed grants program to focus on "active ageing".

"I think we need to harness the skills, talents and abilities of older Australians to transition our economy and our society and our community," Mr Neumann said.

Labor is recommitting to the "Living Longer, Living Better" program of changes first introduced when it was in Government in 2013.

There has been bi-partisan support for the 10-year plan, but aged care groups had called for an explicit commitment to the next phase.

"What is legislated in a requirement is there to be a proper legislative review of the reform process at the half way mark, and I think that's a good strategy," Mr Neumann said.

"We also need to look at the Aged Care Funding Instrument, which has been called for by the sector, and we need to think about how we would get the workforce of the future that we'll need by 2050."

Mr Neumann said Labor would work with aged care providers, unions and other interest groups to develop a national workforce strategy, to create better training, skills and career paths.

Labor has not attached a cost to its policy, but Mr Neumann said those details would be provided when the Opposition's full costings are released before the election.

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