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?
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