Aged care system review could bring in reforms that force up fees
EXCLUSIVE: A LANDMARK review of Australia’s aged care system warns $33 billion must be invested in residential care in the next decade.
News
Don't miss out on the headlines from News . Followed categories will be added to My News.
A LANDMARK review of the aged care system could prepare the ground for reforms that would force up fees.
The review warns $33 billion must be invested in residential care in the next decade.
By 2054, it is predicted the over-65 population will have soared from 3.5 to 9 million.
The federal government received veteran public servant David Tune’s blueprint for reform of the $20 billion aged-care sector last month.
A key plank of the plan is the uncapping of the $49.07 daily fee paid by nursing home residents to cover their meals, cleaning, laundry, heating and cooling.
Aged care providers could then set their own fees — with exemptions for people of limited means — though they would need an independent regulator’s approval to charge more than $100 a day.
Mr Tune also recommends a rise in the maximum accommodation payment for those moving into residential care from $550,000 to $750,000.
The review also called for people using in-home care services to pay mandatory contributions. Mr Tune found many providers did not charge for lower-level services, meaning people were less willing to pay when they needed more help.
The review found the investment needed in residential care over the next 10 years was the equivalent of the industry’s total assets in 2015.
Seniors peak body COTA Australia welcomed the review, and said the government faced a continuing challenge to find the money for aged care as demand rose rapidly.
“If politicians on all sides are going to rule out greater user contributions … they must tell Australians how they will fund aged care into the future,” COTA chief Ian Yates said.
“Either government pays more or services will decline.”
About 1.3 million Australians rely on government-funded aged care services which cost $20 billion a year, a quarter of which is paid for by those getting help.
The government tabled the review in parliament last month and rejected only two of 38 recommendations, including a proposal to change means-testing for people in residential care to include the full value of their homes.
Brewery puts name on global sporting stage
It’s the little brewery that could. A South Gippsland craft brewer is putting its name on a motorsport event with a global audience of more than 100 million people.
West Gate Tunnel build set to close key Docklands route
Brace for more traffic pain linked to the West Gate Tunnel project with a key route in the Docklands set to close.