Aged Care Minister Anika Wells has released the Aged Care Taskforce's Final Report, with 23 recommendations aimed at making Australia's aged care funding more "equitable and sustainable" and providing a blueprint for future funding reforms.
The recommendations - the key recommendations - align with The SOURCE's Plan B, which calls for non-pension consumers to pay more towards the cost of their aged care.
The report also confirms, as expected, the Government will not introduce a new tax or levy to fund aged care or change means testing treatment of the family home.
CHRIS BAYNES: Taskforce recommendations all about shifting the ground and conversations
The Government will now consider the recommendations, and will issue a response "in due course".
Some of the recommendations may be reflected in the new Aged Care Act, which still contains gaps, particularly in relation funding, yet is slated to take effect from 1 July 2024 - less than four months away.
There were mounting calls for the Report to be released, after the Government missed its own deadline in December, and then again in January. The Report was handed to the Government in December.
"Something must change"
Minister Wells said the aged care sector is "under stress" and funding reforms are required.
"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.
“As we consider the Taskforce Report and continue to implement the reforms of the Royal Commission, our focus will always be ensuring dignity and respect for older Australians.”
"The way to increase funding is through consumer contributions"
Grant Corderoy, StewartBrown Senior Partner and Taskforce member, said the recommendations are recognition by the Government that the sector needs more funding through increased consumer contributions.
"The recommendations are a positive from the point of view that there is a recognition that the aged care sector needs to have an increase in the funding envelope to ensure the financial sustainability, innovation, and diversity of aged care services required to meet our future needs.
“The Report also recognises that the way to increase funding is through consumer contributions for everyday living expenses and accommodation expenses, where the resident has the means to pay.
“Going forward, the next steps for the Government’s implementation of the recommendations into policy would be to determine what the effect would be on individual care recipients, be them fully supported, partially supported, self-funded retirees, and wealthier self-funded retirees.”
Grant said the report also confirms the Government will continue to subside the cost of care.
“The Taskforce Report confirms that no person will be expected to pay any more than they currently do today for their direct care needs, as the Government subsidises it to over 60 to 96%," Grant said.
$3.6 Billion additional revenue
Modelling shared with The SOURCE overnight indicates that if all recommendations are taken up by Government, residential aged care will see its revenue increase by around $2.3B and Home Care by a possible $965M in the first year. These expectations have to be tempered by the time it takes to implement co-contributions with new customers.
"Balance the fairness"
Aged and Community Care Providers Association (ACCPA) CEO Tom Symondson said the report was "ambitious" and tackles an important equity question about aged care funding in Australia.
"The hardest question is how to balance the fairness of asking older Australians with financial means to make a greater financial contribution to their own care, against the fairness of asking a shrinking percentage of working-age Australians, who already fund the vast majority of the aged care system through their taxes, to shoulder an even greater burden.”
The Taskforce was announced in last year's Federal Budget, to explore ways to make Australia's aged care system "fair and equitable for all Australians".
The government has had this report since 19 December, giving it five months to consider before the next budget in May, now only seven weeks away. The report discusses the potential need for a significant community education campaign on why co-contribution is a positive policy.
Recommendations 5 and 20 acknowledge the challenge
Recommendation 5: Make aged care fees fairer, simpler and more transparent so people can understand the costs they will incur if they access aged care.
Recommendation 20: Raise awareness of existing financial products that enable older people to utilise their wealth in retirement and provide confidence they can afford future aged care costs.
The Federal budget is due to be handed down on Tuesday 14 May.
