Greater consumer contributions, changes to superannuation, the introduction of a new social insurance scheme and a Medicare style levy are just some of the potential solutions to funding Australia’s aged care system, featured in an ACCPA issues paper submitted to Minister Wells and the Aged Care Taskforce today.
The paper is the product of the Aged Care Financial Sustainability Summit held in June, where the Aged and Community Care Providers Association (ACCPA) brought together 43 organisations representing consumers, aged care providers, unions, experts and government bodies to find solutions to address the funding challenges of Australia’s aged care system, now and in the future.
The paper, representing the broad views of Summit attendees, proposes that the Federal Government continue to be the primary funder of care services – as it is for Australians throughout their lives through the NDIS, Medicare and the public health system. However, for those who can afford it, there should be consideration of increased consumer co-contributions in aged care for accommodation and lifestyle expenses, which people have funded throughout their lives.
The Paper identifies 10 principles for the Government’s consideration, including that aged care funding should be transparent, efficient, equitable, means-tested, include flexible design for First Nations aged care, be universal, future-focused, guaranteed, inter-generationally fair, and support independence.
ACCPA CEO Tom Symondson said “We know that we need a system that supports access for all people in Australia. Every Australian should have access to high-quality aged care, regardless of their location, income or financial means. But we also know the current funding arrangements are unsustainable.”
“Following discussion by a broad group of stakeholders, the paper identifies that those with the means should be asked to pay, or partly pay, for those expenses they have paid for their entire lives. That includes accommodation and lifestyle expenses.
“The superannuation system is designed to provide an income during retirement, enabling people to remain financially independent as they age. We want to see a system that encourages use of superannuation as it was intended.”
The overriding findings were that Australia’s current funding system is not fit for purpose, leaving our sector woefully under-resourced to deal with the massive growth in demand that we will see in the coming decades as our population ages.
