TRANSCRIPT
A new proposal from aged care organisations suggests the Federal Government look at making wealthy Australians dip into their savings to fund a new sustainable model for aged care.
The report, written in consultation with 43 aged care organisations, including providers, consumers, experts and unions, also suggests using a portion of people's compulsory superannuation or implementing a medicare-style levy.
The report has been handed to the Aged Care Minister Anika Wells and a taskforce which is currently looking into sustainable models of funding for the sector, as more of Australia's population grows older.
Tom Symondson is the CEO of the Aged and Community Care Providers Association, who led the report and are part of the taskforce.
He says the current system is not working.
“So the system is really struggling to keep up with demand, as a number of reasons for that not just funding workforce is a significant challenge. But the funding model we have was designed in the late 1990s. For the aged care system we thought we needed then we are now 27 years on when this new act comes in next year 2024. And we need to make sure that the funding system is set up for the next 30 years so that we've got a flourishing aged care sector, not just one that kind of struggles, to be sustainable. We've seen significant investment from government, but we're still in a difficult place."
Assistant Minister to the Prime Minister Patrick Gorman told Sky News the Aged Care Taskforce will assess all possible options to fund better aged care, not ruling out increased taxes and levies which would make younger Australians also pay for aged care..
" We want to make sure that when the Commonwealth is spending some $36 billion expected this year in the aged care system, that we're both getting value for money for taxpayers, but also making sure that we've got the best possible aged care system and so what we'll say is people putting forward a range of different ideas for a democracy and that's how these consultations work is that people put forward ideas for the aged care Task Force to review all of these ideas that are circulating make sure that we get the best possible outcome."
Deputy Opposition Leader Sussan Ley says she doesn't support more taxes and criticised the Aged Care Minister.
"We don't think new taxes are necessarily the answer. But we do want to work constructively with the government for sustainable solutions in aged care, because it's just too important to get wrong. These suggestions there's been many suggestions, suggestions that involve new taxes and new levies are always going to be of concern to us. We've got a government, by the way, who said no new taxes when they came into government. We've got a government who is leaving people in aged care behind."
The report also suggests the government look at ring fencing a portion of people's superannuation to contribute to their own aged care rather than it be left as inheritance.
Assistant Treasurer Stephen Jones, who is responsible for superannuation, told the ABC it is a necessary conversation.
"It's a conversation we've got to have. The purpose of superannuation is to provide for retirement income. And of course you know those last stages in a person's life has got to be taken into account in this, it strikes me as odd in a system which is about retirement income that a third of the checks that have been written by superannuation fund by value so a third of the value of checks and superannuation funds are writing at the moment are bequests."
Nationals Senator Matt Canavan told Sky News parts of the proposal could work.
"I don't think this is a good idea because for most Australians, their superannuation might not be enough as it is. So I don't think there's this sort of pot of gold there to raid to fund the aged care deficit we're facing. Now, look in saying that we are facing a real challenge in funding aged care. And I don't dispute that some solutions and part of the solution to that would be or should be, to require people who can pay or can't afford to pay to make a contribution."
But Greens Aged Care spokeswoman Janet Rice says people should not have to tap into their own pockets to fund a better government system.
"We can afford to be spending the money that's needed so that people living in aged care can be living a dignified life with the support they need, staff that aren't overworked. If we were spending the money that is needed, we could be doing that. Why are we talking about increasing a user pays, people having to pay more for their aged care when there is money that we would be spending if we did away with the stage three tax cuts."
The Aged Care Taskforce is due to release its final recommendations at the end of the year, with a new Aged Care Act due to be legislated in 2024.
