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28 APRIL 2015
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Payroll tax supplement cuts hit Veterans in age care services
Chief Executive Officer of Leading Age Services Australia – Victoria (LASA Victoria) Trevor Carr today
urged State and Federal Governments to review the cessation of the payroll tax supplement announced
in the 2014-15 Commonwealth Budget, commencing 1 January 2015.
Mr Carr said the Government’s decision will leave an estimated $653 million hole over three and half
years including a hole of over $93 million for residential age care services provided to Australia’s 24,700
veterans, including over 6,000 from Victoria.
“According to the 2015 Report on Government Services the decision will create an average funding gap
of about $1500 per veteran in Victoria which will either be absorbed by the provider, or paid for by the
veteran,” Mr Carr said.
Mr Carr said non-for-profit and charitable aged care providers are exempt from paying payroll tax.
“The supplement which has been in place in one form or another since 1968, was paid to approved
private residential age care providers in recognition of the fact that they had to pay the state based tax,”
Mr Carr said.
Mr Carr said nowhere is the impact of the cessation of the payroll tax harder felt than in Victoria.
“Victoria’s private aged care sector provides over 50 per cent of residential aged care places, compared
with a national average of just over 37 per cent,” Mr Carr said.
The Federal Government’s decision to cease the payroll tax supplement was done without consultation
with the aged care sector and based on a few sentences in the National Commission of Audit.
The basis for their decision being that payroll tax and the supplement is an issue for the State and not
within the jurisdiction of the Commonwealth.
Mr Carr said we are keen to engage in meaningful dialogue with all tiers of Government to discuss this
important issue further.
‘We don’t want to enter into a blame game between the State and Federal Governments. Our seniors
and Veterans deserve better than that,” Mr Carr said.
“All components of aged care services rightfully deserve stability to encourage future investment, and
unexpected government decisions threaten that stability.”
The cessation of the supplement is a huge disincentive to the entry of new providers into residential age
care services, and a huge impost on future capital investment for current providers.
LASA Victoria is the peak body for age services in Victoria. We champion aged care services organisations
to provide the best possible care for older Victorians, now and into the future.
Media Enquiries
Ashley Oliver – Media & Public Relations Adviser
m. 0458 011 009 p. 03 9805 9400 e.ashleyo@lasavictoria.asn.au www.lasavictoria.asn.au