Gummun Place Hostel

Information from community meeting 7 May, 2025

Thanks to the community for attending the Gummun Place community meeting on 7 May, 2025.

Helpful resources:

Consultant's Presentation(PDF, 2MB)

Consultant's Report(PDF, 2MB)

FAQs

Question: Invoices haven’t been issued to all residents.
Answer: All invoices have now been issued. There were a few that took some time to finalise, and Council apologises for the delay. However, this does not impact the overall financial position or losses at the facility. The timing of invoices only affects when payments are received

Question: Staff weren’t paid the 15% salary increase in accordance with the award and the Commission had to direct Council to make these payments.
Answer: The Aged Care Quality and Safety Commission (ACQ&SC) does not have any authority over salary rates or staff payments. These matters fall under the jurisdiction of the Industrial Relations Commission – NSW. Therefore, the ACQ&SC could not, and did not, direct Council to make any wage payments. This claim is incorrect.
Wage increases are often announced by the Federal Government well before they formally take effect. This can cause confusion, as implementation dates are not always clearly communicated in the media. The relevant Award must be updated by the industry body (LGNSW) and then gazetted by the Industrial Relations Commission before Council can implement any wage changes. This process often takes time and is beyond Council’s control. However, once the updated Award is ratified and received, Council always applies the new wage rates as soon as possible. There is no reason why we wouldn’t.

Question: The facility is owned by a trustee.
Answer: The facility is wholly owned by Upper Hunter Shire Council. A trusteeship arrangement was originally established under the former Merriwa Shire Council. However, when the amalgamation occurred, ownership formally transferred to Upper Hunter Shire Council.

Question: Can the community run it?
Answer: There are models where aged care facilities are operated by the community. In early 2025, Council ran an Expression of Interest (EOI) process that allowed for proposals involving any model, including community-led operations. For a community-run model to proceed, a formal application would need to be made to Council to transfer responsibility for the facility. The community group would then be responsible for the ongoing operation. To date, no such proposal has been received from any community group.

Question: Why have the community just found out Gummun is going downhill? Why didn’t we know about this?
Answer: Council has been raising concerns about the viability of Gummun Place for the past three years. These issues have been publicly reported through the Merriwa Aged Hostel Committee, Corporate Services Committee, and in financial reports and in the media.

Question: Will ownership of Gummun eventually go to a private enterprise rather than return to the people of Merriwa?
Answer: If a private entity wishes to purchase the facility, Council may choose to sell the business. Proceeds from any sale would go to Council, which would then decide how those funds are used. This could include investment in special projects in Merriwa.

Question: Why didn’t UHSC get funding? Why are we unsuccessful in getting funding that other regions receive?
Answer: Council submitted grant applications in both 2023/24 and 2024/25, each for $2 million, to fund upgrades to the facility. It is understood that Denman submitted their application five times before eventually securing funding. The Federal Government has advised that the grant program was oversubscribed by a factor of five, meaning only a small percentage of applicants are successful in any given year.

Gummun Place Hostel is located in the picturesque town of Merriwa on the Golden Highway between Newcastle and Dubbo. 

The Facility

• It is an aged care facility with an approved bed allocation of 16 beds
• Rooms for singles and couples. All rooms are private with ensuites
• Two sittings rooms with tea and coffee making facilities
• Meals cooked and served daily
• Air conditioned
• Expansive gardens with barbecue facilities
• Outings and activities to participate in at resident’s discretion