Financing Aged Care

The Royal Commission in its final report must make the case for reform outlining the key investment decisions and a timetable for implementation. Detailing the changes and necessary investment required and the benefits and outcomes of reform should be the first step

In this submission COTA argues strongly for a substantial increase in funding in the next three years, at least 25 percent, in aged care funding in the next three years to address key reform priorities already canvassed by the Royal Commission and other government-initiated reviews and reports. These funding priorities include investment in home care packages to reduce waiting times and financing the Aged Care Workforce Taskforce recommendations particularly measures that improve the number, quality and mix of aged care staff.

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.

The submission explores the opportunities and risks of implementing the government financing mechanism options outlined in the Royal Commission’s discussion paper such as hypothecated taxes or levies and models of insurance schemes and the impact of potential changes to retirement income policy as a result of the soon to be released Retirement Income Review.