Community Services | November 13, 2015

Labor must explain HACC costs: Drum

State Government changes to the way Home and Community Care was being funded was forcing local councils to slash their services, MP for Northern Victoria Damian Drum, told State Parliament this week.

He said he had been contacted by the City of Greater Shepparton which was worried about the impact of recent changes on some of the area’s most vulnerable people.

Shepparton council said it would have to drastically cut the amount of hours on HACC services because the State Government had revalued the cost of care from $38 an hour to $45 an hour.

This meant that while, in dollar terms, the State financial contribution to HACC was not being reduced, the funding was providing less services. 

In effect, this meant the amount of hours of HACC services available in Shepparton could be reduced by 13,000 hours a year.

At the same time, the Labor State Government was capping local government rates, meaning local government had no way of raising revenue to pay for the shortfall. 

The changes meant Shepparton City would have to raise almost $750,000 to meet local demand.

Mr Drum said he had been told the new pressures on HACC services was one of the biggest issues confronting regional councils.

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