This paper is part of the process by which the Department responds to the conclusions and recommendations included in the Final Report of the Royal Commission into Aged Care Quality and Safety that relate to aged care accommodation.
COTA Australia welcomes the Bill and supports its purpose of enabling essential reforms to the aged care system recommended by the Royal Commission. We strongly encourage its passage through the Parliament.
Our view - expressed repeatedly and publicly, and in submissions, over recent years - is that significant parts of the industry are over-reliant on RADs and the industry is short on adequate levels of both equity investment and debt capital.
COTA argues that, to improve the financing of aged care, there should be increased user contributions if they are fair, equitable and transparent. However, user contributions should not be a replacement for greater government investment.