News that information on the Federal Government’s Aged Care Taskforce has shifted from the Department of Health and Aged Care to the office of the Prime Minister and Cabinet is a welcome development in driving forward the discussion about the future funding of Australia’s aged care system.
Until recently, the Taskforce’s Terms of reference and communiques were hosted on the Department’s website.
You can check out the new link here.
The move is yet another sign that the Government is seriously considering how Australia’s aged care sector will be funded into the future – including the role of consumer contributions in creating a fairer and more equitable funding model.
The Government laid the groundwork for Plan B earlier this year with the Department commissioning political consultants Kantar Public Australia in February to look into consumer co-contributions to the cost of aged care.
The establishment of the Taskforce – with the aim of reviewing the funding of aged care, including “contribution arrangements that will support a sustainable system” – in the May Budget furthered this agenda.
The Department advises us that they continue to analyse the report findings regarding the Kantar Public research.
“The Aged Care Taskforce has been provided with a copy of the report,” a spokesperson told The Weekly SOURCE.
Plan B to be an underlying principle of new funding model
Now the Taskforce has moved under the umbrella of the Prime Minister and Cabinet and opened consultation on six key principles that will define the new funding system.
You can read the full list of principles here, but the main principle that providers should take note of is number three:
“Government is and will continue to be the major funder of aged care. Government funding should be focused on care costs. Personal contributions should be focused on accommodation and everyday living costs with a sufficient safety net.”
In short, one of the Taskforce’s underlying principles is Plan B – where Government continues to be the primary funder of care while consumers with the means to pay contribute to the cost of their accommodation and daily living expenses, and a safety net remains in place for the financially vulnerable.
And as we report in this issue, the Government has also opened consultation on the new Aged Care Act, due to commence on 1 July 2024 – which is where any new funding model could be enshrined in the legislation.
The SOURCE: With the Aged Care Taskforce on track to present its Final Report in December, all evidence points towards Plan B as the centrepiece of the new funding model for aged care.
