One Nation funding fix for troubled aged care sector

One Nation leader Pauline Hanson has a plan to fund the troubled aged care sector that saves taxpayers getting slugged.

One Nation leader Pauline Hanson has called for state governments and global oil and gas giants to fund upgrades to the aged care sector after rejecting calls for a hike to the Medicare levy.

Senator Hanson last week wrote to all state premiers, calling for them to dump hefty payroll taxes for aged care facilities, which face an explosion of costs following a damning Royal Commission into the sector.

One Nation leader Pauline Hanson wants states and multinational oil and gas companies to help fund improvements to the aged care sector. Picture: Gary Ramage/NCA NewsWire

The commission’s final report released earlier this week made 148 recommendations including investigating the creation of a specific aged care levy to finance the troubled system.

But Senator Hanson rejected the costs being pinned on Australian families and small businesses following suggestions the Medicare levy could be increased by 1 per cent.

She instead wants to target “multinational tax dodgers”, saying oil and gas companies were taking billions of dollars worth of gas from Commonwealth waters but paying “little to no tax”.

Senator Hanson said aged care facilities would also be able to make significant improvements if “state’s stopped imposing a payroll tax on an industry that the majority of us will require in our final years”.

Prime Minister Scott Morrison holding the final report of the Aged Care Royal Commission containing a recommendation for a new levy to fund the troubled sector. Picture: Jenny Evans/Getty Images

“I’ve spoken to operators who have welcomed the majority of recommendations in the report, but they’re asking a legitimate question: how do they afford to implement them?” she said.

In the letter, Senator Hanson said state governments had a role to play along with the Commonwealth in improving the system.

“The ability of all operators to implement the recommendations of the Royal Commission is directly related to their profitability,” she wrote.

“The removal of state payroll tax will be of significant assistance to the sector in providing the level of care and environment every client deserves.”

She noted that not-for-profit facilities were already exempt from payroll tax which allowed them to spend more on patient care compared with for-profit facilities.