2023-24 Federal Budget

On Tuesday 9 May the Federal Government released the 2023-24 Budget. There were measures to boost wages and skills, and it predicted a big fall in inflation to less than 3% by 1 July next year.

However, the growth forecast is predicted to fall to just 1.25% next year as global economies battle high inflation. Treasurer Jim Chalmers warned of the massive structural challenges facing the nation due to increased health, aged care, NDIS, defence and interest payments.

OTA attended post-budget briefings in the health, aged care and mental health portfolios and undertook an analysis of the budget papers to identify key spending and items relevant to OTs. Read on for a summary of some of the key areas.

Home Care reform

Commencement of the Support at Home Program will be postponed to 1 July 2025 to allow for further refinement of the final design. Grant arrangements for the Commonwealth Home Support Program will be extended for a further 12 months to 30 June 2025.

Additional funding of $338.7 million over four years from 2023–24 has been pledged to improve the in-home aged care system. This includes funding for:

• $166.8 million in 2023–24 to release an additional 9,500 home care packages.

• $15.7 million over two years from 2023–24 to establish a single aged care assessment system, including the establishment of a First Nations assessment workforce.

• $487 million pledged over four years from 2023–24 (and $133.6 million ongoing) to extend and make ongoing the Disability Support for Older Australians

Program, for those who were not eligible for the NDIS at the time of rollout.

$556 million (and $36 million ongoing) is allocated for improved mental health. This budget extends critical services, addresses urgent gaps and workforce shortages – laying the groundwork for future reform. OTA feels this does not go far enough to support the role of mental health OTs, despite OTA’s ongoing advocacy to government. Government investment includes:

• $260.2 million over two years invested for psychosocial support for more than 18,000 people with severe mental health illness who cannot access the NDIS.

• $17.8 million over five years to upskill the broader health workforce in mental health, to alleviate workforce shortages and deliver high quality mental health treatment and support across a range of settings. Undergraduate nurses, midwives and allied health students receive contemporary training in mental health treatment and support.

• Expanded supports for workplaces, children and young people, people with eating disorders, those bereaved by a suicide loss and individuals and communities impacted by natural disasters.

• Boosting mental health support for First Nations people in the lead up to, during and following the Voice referendum.

• Further protection for vulnerable members of the community, including refugees and migrants who have experienced torture and trauma, and culturally and linguistically diverse communities.

OTA welcomes announcements to reform elements of the NDIS and increase staffing and capability within the NDIA to make it easier for participants to access much needed supports. We are 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.

The Government signalled its 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. We are pleased to see this is a target, not a cap, and that it will be supported through a major investment package to drive improvements within the scheme.

$732.9 million over four years from 2023-24 is being invested in initiatives developed in consultation with the NDIS Independent Review Co-Chairs.

The budget saw some measures to support existing allied health workforce but fell short of funding a national allied health workforce strategy (which has been called for by OTA, AHPA and many stakeholders).

Workforce Incentive Program changes Investment of $445.1 million over five years from will improve the quality and accessibility of multidisciplinary primary care and improve the financial sustainability of multidisciplinary general practice by immediately increasing all payments under the Workforce Incentive Program – Practice Stream. This funding will support practices to expand multidisciplinary teams and employ more nurses, allied health and other health professionals in practices.

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 OT fees under DVA.

There is some investment in claims processing to reduce claims backlog including $64.1 million in 2023-24 to retain 500 DVA staff, and $254.1 million over four years to fix IT and payment systems.

Bulk billing

$3.5 billion over five years from 2022-23 in bulk billing incentives, which we hope will see more Australians be able to afford to visit their GP to receive important care including referrals for allied health services.

$99.1 million over five years will support establishment of a new MBS item for longer consultations over 60 minutes, which is expected to support an increasing number of patients with chronic conditions and complex needs.

Better access to Allied health services for First Nations Australians First Nations Australians with a chronic condition, or following a Health Assessment, will have streamlined access to the ten allied health services through MBS items 93000, 93013, and 81300–81360, 93048 and 93061, and 10950–10970. This includes occupational therapy, MBS item 10958.

All ten items will be accessible following either a GP Medical Plan/Team Care Arrangement or Health Assessment, rather than requiring both. This measure was due to be implemented on 1 March 2023, however, due to implementation challenges and the need for additional stakeholder consultation, it will now be implemented on 1 March 2024.

Scan the QR code to read our full budget analysis on the OTA website.