industry & reform
Super solution ?
Providers suggest a range of measures to fund aged care
By NCA Newswire and Arshmah Jamal
Australia ’ s aged-care funding crisis could force people to use their superannuation savings to pay for their care , a new blueprint from the sector ’ s peak advocacy group has cautioned .
Released at the Aged and Community Care Providers Association ’ s ( ACCPA ) national summit in July , the new paper also canvassed a new social insurance scheme or Medicare-style levy as an alternative to help fill the aged-care funding black hole .
The intervention comes after harrowing details of neglect of elderly Australians came to light at the 2021 Aged Care Royal Commission .
Systemic problems facing the sector included inadequate funding , a challenge that will be further compounded as Australia ’ s population continues to age .
In July , the aged-care task force gathered in Adelaide to discuss a number of long-term solution for sustainable funding for the sector .
Solutions such as user-pays and lifting the means test were discussed , but the controversial tax and levy scheme was not ruled out .
In the May federal budget , aged-care costs for the 2022- 23 financial year were revealed to have blown out from $ 24.8bn to $ 29.6bn , largely due to increased funding following the royal commission ’ s recommendations .
Funding for the sector is set to surge to almost $ 40bn by fiscal year 2026-27 , with a further $ 11.3bn to fund a 15 per cent pay rise for the sector over the next four years .
Federal aged care funding only equates to 1.2 per cent of GDP , well below the OECD average of 2.5 per cent .
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User-pays and lifting the means test were options , but the controversial tax and levy scheme was not ruled out
While the federal government will continue to contribute the lion ’ s share of funding , the nation ’ s $ 3.5 trillion superannuation system has been submitted as one possible solution to the funding crisis . The ACCPA paper proposes that a proportion of people ‘ s superannuation savings should be set aside to pay for aged care costs . “ Plans to change superannuation to fund aged care will see people who can afford to pay more towards their care being asked to do so ,” said ACCPA chief Tom Symondson . “ We need to make better use of superannuation .” “ A lot of people have no super or not enough super to retire on , but this is a generation , the first generation , that has significant superannuation savings .” ■
‘ Promised transformation ’
How two women are fighting for reform in the aged care sector
By Arshmah Jamal
In 2019 , Amina Schipp met Yvonne Buters through a private Facebook support group when Amina ’ s mother died due to a medication error .
Two years later , the duo have been on a journey with a grassroots campaign Aged Care Reform Now ( ACRN ) to advocate for aged-care reform from the government .
ACRN , which started on Facebook , has since grown to engage in reform processes , advocate for potential solutions , and give a voice to the people .
Earlier this year Ms Schipp and Ms Buters went to Parliament House in Canberra for an aged-care roundtable – resulting in a forum of advocacy .
“ We have formed a group , a coalition of aged-care advocates , and everyone is saying the same thing – we want reforms ,” Ms Buters told Aged Care Insite .
“ People want to have person-centred care , enforceable human rights , and clear definitions of elder abuse .”
In late June Aged Care Minister Anika Wells promised no changes would be made without consultations with consumers and the general public .
“ We sent a huge letter in early April that explained we are not anti-government , and we want to provide constructive feedback because we know what went wrong ,” Ms Schipp said .
“ But we only received acknowledgement of it at the end of July , which is a long time .”
“ It ’ s one thing to not listen to an ordinary person , but if they don ’ t listen to peak bodies and CEOs it ’ s quite serious .”
The duo agreed that while changes have happened since the Royal Commission , “ promised transformations ” to the sector were still pending , such as separating the aged care and sports portfolio , deinstitutionalisation , and focusing on community care .
Another transformation was a new aged-care act .
Initially tabled to be implemented in July , the new aged care act has been delayed until next year .
However , despite the delay , Ms Schipp and Ms Buters are determined to sit at the conversation table before it is enacted .
“ Our future for ACRN is to have input in the conversation regarding the act ,” Ms Buters said .
“ The Royal Commission promised transformational reform of the aged-care system , but all we ’ re seeing is tinkering with the old system .”
The two women fear the aged-care sector will never break out of its current state or be too late for meaningful reform .
“ We ’ re kind of restricted by the political cycle of four years – by the time new reform or change is made , a new government comes ,” Ms Buters said .
“ People need to start looking at aged care in the longer term and looking at older people as assets .”
“ ACRN will keep advocating and fighting for meaningful change .” ■
agedcareinsite . com . au 9