Would you be prepared to pay more for your aged care costs?
The federal government has flagged reforming the aged care system to make elderly people pay more for their care in a plan to relieve the burden on taxpayers.
It’s a proposal being backed by aged care providers.
The proposal is part of the draft National Strategy for the Care and Support Economy report, which says investment and expenditure in the care and support economy should include fair and reasonable consumer contributions where appropriate.
The strategy aims to improve care conditions for the elderly, disabled, veterans and childcare sectors and improve employment conditions for workers.
One proposal being floated is that those who can afford it, contribute more towards their care.
The draft paper claims that government spending in the care sector is projected to rise from about $60 billion in 2021 22 to $220 billion in 2026-27.
Sustainable funding
It said there needed to be a broader conversation about making the funding sustainable and that there needed to be clarification about funding expectations, including:
- What is the appropriate level of service governments should fund? What level of care and support do people need, which might be different from what they want?
- Should governments fund a universal, minimum standard of care and support, but allow people to purchase a higher level of care and support where they are able to? If so, what is the minimum standard of care and support governments should fund?
- More broadly, what is the appropriate mix of funding for quality services between government and individuals (noting this is likely to vary between specific services)?
- If Australians as a whole do expect the government to fund a high level of care and support services, would they accept an increase in taxation or a reduction in other government services to pay for this?
Aged and Community Care Providers Association chief executive Tom Symondson told the Financial Review that the government’s artificially low caps on aged care providers should be re-examined.
Mr Symondson said aged care providers must charge residents no more than $30,000 a year, regardless of whether the resident had $100,000 in assets or $1 million.
“I don’t know whether we would support a system where richer people could get a better level of care,” he said.
Taxpayer subsidies
“But we’re not fairly distributing the taxpayer subsidies.
“If you have a significant amount sitting in your super account, why shouldn’t you contribute more to your care?”
Catholic Health Australia chief Pat Garcia said he supported the draft strategy’s call for “fair and reasonable consumer contributions” where appropriate.
“Those with the means to easily cover aspects of their own care should absolutely be required to pay instead of relying solely on the taxpayer,” he said.
The draft report also flagged that higher wages for workers would only come through productivity gains. A sure warning that the government was not going to tip any more money in wage increases.
The government recently agreed to a 15 per cent pay increase for aged care workers. It is the largest pay increase for the sector to date and is estimated to cost $11.3 billion.
“It is important that we meet our nation’s growing and evolving care and support needs without leaving future generations of taxpayers with unmanageable debt,” the report said.
“Achieving this long-term sustainability vision requires government investment to be both effective and efficient, and will require productivity growth across the care and support economy.”
What do you think of the proposal asking those who can afford it to contribute more to their care? Do you think it’s possible? Why not share your opinion in the comments section below?
Also read: Government changes that could affect your retirement
I like the idea of Govt (taxpayers) covering bare minimum service costs. Those that desire a better level of service should pay for it – then you have choices.
You mean like the two-tier health service we have now? If you can afford private health cover you get treated, if not you go into the public system and take your chances?
I first need to declare I’m not in the rich class. I believe, Everyone, rich or poor, is deserve to be treated in public hospital. If you want to deny the rich people the access to public resources, you should also deny their duty to pay tax
Isn’t this the current situation? I recently researched nursing homes and found that some is extremely expensive, for the rich. Majority of them are for ordinary people. I feel this is already the model for people to have a choice.
It’s like If you are rich, you can call a taxi, but you are not denied for using a train or bus.
I feel it’s like “because you can afford a taxi, you are not allowed to usepublic transport”.
My wife is on a level 3 package and our contribution is based on my CSS pension income and my part aged pension. My contribution to the package went up to $424 per month with my last Silver Chain account. I have to pay tax on my above income as well as the medicare level. The unused fund in the package is now $38,000. I believe there needs to be a full review of the funding of these packages.
I’m in favour of governments funding a universal, minimum standard of care and support. Interpret that to mean how much money would the government provide, particularly if the person in care has no other financial assets. I would favour the minimum payment to be equal to a maximum Aged Pension, currently $1,064 per fortnight or $27,664 per year and reviewed twice a year as the Aged Pension is currently assessed.
The content of a universal standard of care would also be reviewed twice a year and must include a standard of accommodation, the nutritional standard of three meals per day, and access to all medical and pharmaceutical needs which would also include personal hygiene and appearance needs.
Agreed. I now get half the Home Help assistance that was provided previously by my Local Council and even that Home Help is not half as good as previously provided. Often late in arriving but more than punctual in finishing.
As a partially disabled person my requests for an extra one hour assistance a fortnight is denied.
So much for looking after the (ex workers).
A part aged pensioner.
We have been taxpayer’s all our lives so we have been taxpayer’s, and as long as we all have the minimum standard regardless of our wealth.
I am perplexed by the smokes and mirrors campaign being run by the Association cobbled together by the Agedcare providers..and no doubt funded by the scarce funds paying for old and vulnerable sick people.
There are many things not being being said in this campaign.
According to the Australian newspaper headline on may 10 th was that Labor had pulled $2.2 billion from Aged care nursing homes to fund the additional Agedcare home packages. The association neglects to highlight that most people who pay a means test tax” are already subsidising the care of a less well off resident..
In my wife’s case we are paying approx $61,000.00 a year plus we have paid $500,000 as the accommodation (rad).
Where your partner is in care and paying costs like above it is very difficult to manage to live yourself and run a house to live in.At nearly 80 you spend about up to 70 hours a week helping care for her. So getting a job does not work.
I never thought my country and the Agedcare industry would let down the old and frail by running a flawed one sided misleading campaign using residents money as well
Cheers
The problem is with the level of administration (or mis-administration) of the plethora of providers in the Age Care sector. Commercial interests have inflated the provision of service with the regulatory provisions adding to the confusion.
I wanted to continue with my privately-employed home care to take part in the Commonwealth scheme, but it would cost the helper over $8000 to even register and continue with the care that I get for $50 per week.
I understand with Care Packages there is a $11 per day admin fee! For What???? I have had 3 Providers and there was no opportunity for me to have the same person continue to work in MY home. No Respect!!!