A long-awaited review has called for retirees to make rental contributions instead of large lump sum deposits to live in nursing homes; those receiving care at home are to pay more as well.
Already a subscriber?Wealthier Australians will pay more for aged care under a long-awaited government review, which calls for retirees to make rental contributions instead of large lump sum deposits to live in nursing homes.
The plan aims to stabilise the aged care industry and provide greater choice for retirees and their families.on Tuesday, the report said demand for quality services was increasing at the same time as more elderly people had the means to pay more.Healthy superannuation balances and falling reliance on the age pension make the changes possible, the report said.
The plan, designed by an expert taskforce led by Ms Wells and former senior Treasury official Nigel Ray, said existing lump sum payments known as refundable accommodation deposits will be phased out by 2035, in favour of a rental only model.This is a decade later than the phaseout proposed by the 2021 Aged Care Royal Commission, which was deemed “too aggressive” and would disrupt the sector too much, putting service availability for older people at risk.
A new basic daily fee structure is recommended, with a supplement in place to stop providers’ banking losses. The cost, currently $61 per day, would continue to be maintained as a percentage of the age pension.Residents would be able to negotiate a better deal or premium services for a higher fee, with providers required to publish pricing schedules, provided participants have already entered care.
“Australia’s aged care system is under stress. There is universal acceptance that something must change in order to ensure all Australians can age with the dignity, safety and high-quality care they deserve,” she said.“After spending their lives building up our country, we have a solemn responsibility as a nation to respectfully care for older Australians as they age.
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