Nursing home subsidies
On 13 July 1998 the Treasurer referred the current and alternative funding methodologies for nursing home subsidy rates to the Productivity Commission for inquiry and report within six months. The Aged Care Structural Reform Package, announced in the August 1996 Budget, included a process of ‘coalescence’, under which the different nursing home subsidy rates in States and Territories would gradually move to national rates over a period of seven years, commencing from 1 July 1998. The Government decided to delay the implementation of the coalescence process pending a review by the Productivity Commission into differential subsidy rates.
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