This week the government finally released the Aged Care Taskforce Report which contains 23 recommendations to reform the fees and funding across home care and residential aged care.

The taskforce ruled out meeting the increasing cost of aged care through a tax or levy pointing to the “substantial intergenerational equity issues in asking the working age population, which is becoming proportionately smaller”. Instead, it said the solution is to increase participant co-contributions.

Aged care residents could be expected to pay more for their everyday expenses under a new model.

The taskforce also made it clear that government funding should be directed towards care services rather than everyday living expenses, on the basis that people have met these costs at every other age in their lives.

The amount you pay for residential aged care has three components: accommodation (paid by a lump sum, a daily payment or combination), a basic daily fee, currently $61 per day covering everyday expenses such as meals and laundry, and a means tested care fee which is used to offset government funding for your care.

Currently, the government provides an $11 per day supplement to the basic daily fee for all residents and pay the majority (94 per cent) of care funding, with means tested fees making up just 6 per cent ($800 million).

The taskforce recommended increasing the amount you pay towards accommodation and living expenses through:

When it comes to how much you should pay for your care, the taskforce gave conflicting statements, saying the government could elect not to charge a co-contribution for care, or they could choose to remove the current annual caps ($13,100 for home care and $32,700 in residential aged care) and lifetime limit of $78,500.

QOSHE - Taskforce recommendations could shake up how we pay for aged care - Rachel Lane
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Taskforce recommendations could shake up how we pay for aged care

9 1
12.03.2024

This week the government finally released the Aged Care Taskforce Report which contains 23 recommendations to reform the fees and funding across home care and residential aged care.

The taskforce ruled out meeting the increasing cost of aged care through a tax or levy pointing to the “substantial intergenerational equity issues in asking the working age population, which is becoming proportionately smaller”. Instead, it said the solution........

© The Sydney Morning Herald


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