Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I think the government's decision really was about how to maximise the funding going to direct care, whilst balancing up reasonable costs for those other associated charges or costs for providers. I don't walk away from the fact that it's a government decision. I think the system that we are establishing here today will allow for efficiency in terms of those costs in packages and care, and this maximises the opportunities. I would say—I got this a fair bit, I'm sure the minister did, and I am sure you did as well—there was a lot of concern from older Australians about the money that wasn't lost but wasn't maximised for their own care provision. I had it raised with me a number of times about the package that was received and then the costs that were incurred for the administration of that package.

We have looked at this really carefully. The Department of Finance was involved, working with the Department of Health to try to land on a spot that we believe has reasonable costs but that maximises the investments going in for individuals in their care.