Intergenerational Report latest evidence backing Plan B aged care co-contributions

The report, released by Treasurer Jim Chalmers today, has dominated news outlets since Saturday as the Federal Government selectively leaked information to show taxpayers cannot reasonably be asked to pay more to care for seniors.

Prime Minister Anthony Albanese warned yesterday that Australia needs to collectively plan for an ageing population, with economic growth in coming decades predicted to slow and be lower than the past 40 years.

The five fastest growing areas of Government spending – health, aged care, NDIS, defence and interest payments – will increase to become half of the entire budget by 2062-63, according to the report. Those sectors currently account for one-third of Government spending.

Factor in that the number of Australians aged 85 and over is estimated to more than triple in the next 40 years and it is clear the Government is trying to show the public that it should not be asked to shoulder the burden.

The 2023 Intergenerational Report backs the leaks from the Department of Health and Aged Care’s Aged Care Taskforce, which is clearly looking at seeking a bigger contribution from residents to pay for aged care, providing they can afford it.

The May Federal Budget revealed that the Government would set up the Aged Care Taskforce to review the funding of aged care, including “contribution arrangements that will support a sustainable system”.

The Aged Care Taskforce has since been moved from the Department of Health and Aged Care into the Office of Prime Minister and Cabinet. 

The Federal Government in February commissioned political consultants Kantar Public Australia to look into consumer co-contributions to the cost of aged care.

The SOURCE: The new Report is the latest piece of evidence that points to Plan B, which advocates shifting towards a user pays model to ensure the future stability of the aged care sector.