Federal Budget 2023

OTA welcomes investments in the Federal Budget announced 9 May 2023 that will support occupational therapists working across the health system. However, more needs to be done to ensure OTs and other allied health professions are at the centre of delivery of healthcare for all Australians. 

A full response to the budget and further commentary will be available on the OTA website in the coming days. 

Medicare 

OTA welcomes the 2023 Federal Budget announcement of much needed investment in Medicare through initiatives including: 

  • $3.5 billion in bulk billing incentives, which we hope will see more Australians visit their GP to receive important care including referrals for allied health services.  

  • $79.4 million over four years to strengthen the role Primary Health Networks (PHNs) play in commissioning multidisciplinary health care teams to improve management of chronic conditions and reduce avoidable hospitalisations, as well as to improve access to affordable multidisciplinary health care (including allied health professionals, nurses, nurse practitioners and midwives). 

  • $6.1 million investment in My Health Record over the next two years to support allied health professionals to understand and develop connections to use My Health Record in client care. 

We also welcome funding for a Scope of Practice Review that will examine current models of care against community needs and potential expansion to scopes of practice and models of care for a range of health professionals, including allied health. 

NDIS 

The Government has signalled intent to curb NDIS spending through an 8% growth target, which will be delivered through a range of measures to improve claims management and reduce fraud. 

Government is investing $732.9 million over four years in initiatives developed in consultation with the NDIS Independent Review CoChairs. This includes $429.5m to improve NDIA staff capability and systems, $73.4 million to better support participants to manage their plans, and $48.3 million over two years to address scheme fraud. 

OTA welcomes announcements that will make it easier and quicker for participants to access much needed supports. We are particularly pleased that NDIA will extend participant plans beyond annual planning cycles and establish an expert advisory panel (in consultation with stakeholders) to identify evidence-based supports. 

We also welcome an investment of $7.6 million over two years that will support community partnerships to pilot alternative commissioning approaches to improve access to NDIS supports in remote and First Nations communities. 

OTA awaits the outcomes of the current NDIS Review for further details about how the scheme will be improved for both participants and occupational therapists working in this space. OTA supports measures to crack down on fraud but continues to challenge any suggestions that OTs are not working in the best interests of NDIA clients. 

Veterans 

There is some investment in claims processing to reduce claims backlog including $64.1 million in 2023-24 to retain more than 480 DVA staff, and $254.1 million over four years to fix IT and payment systems.  

OTA was disappointed to see no meaningful investment in improving the quality of health services accessible to Australian veterans, despite our calls for an increase in occupational therapist fees under DVA. 

Aged Care 

Government is investing in the aged care workforce through a 15% wage rise for aged care nurses, which OTA hopes will see better care outcomes for older Australians. 

The Government will continue to fund the Aged Care Reforms with the Support at Home program now commencing 1 July 2025 (a year delay). We hope this extra time allows us to continue to influence the program to include better recognition and support of occupational therapists and other allied health services for older Australians in their homes. The Government will provide additional funding of $338.7 million over four years from 2023–24 to improve the in-home aged care system. 

OTA is also pleased to see funding for $10.9 million over two years for the trial of an assistive technology loans program. 

OTA notes the additional funding of $309.9 million over five years from 2022–23 to implement the recommendations from the Royal Commission into Aged Care Quality and Safety and other initiatives to strengthen the regulation of the aged care sector. 

Mental Health 

The government’s investment of $586.9m in mental health includes significant funding to create more training places for psychologists and to upskill the existing health workforce to recognise and respond to mental health issues. Disappointingly, this funding does not acknowledge or support the role of mental health occupational therapists, despite OTA’s ongoing advocacy to government to recognise and support mental health OTs. 

OTA is pleased that calls for expanded psychosocial programs have been acknowledged with $260.2 million over two years funded for psychosocial support for more than 18,000 people with severe mental health illness who cannot access the NDIS. 

Read more about the key budget initiatives in the health and aged care portfolio here.  

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