Aged Care Insite Issue 138 Aug-Sep 2023 | Page 13

industry & reform of taxable personal income in 2021 , suggesting that it should be modelled after the existing Medicare Levy Act .
“ ACCPA will attempt to answer many of these questions in its white paper on the financial sustainability of Australia ’ s aged-care system ,” Mr Symondson said .
He said the Australian government was currently reviewing ‘ funding arrangements for aged care ’, including the possibility of older Australians contributing more towards their care .
“ The Aged Care Taskforce is working on recommendations for these changes , which will be announced later this year .”
ACCPA recently hosted the Financial Sustainability Summit , where 50 experts gathered to discuss modernising aged-care funding and enhancing its financial sustainability .
Most of Australia ’ s aged-care consumers contribute to their costs depending on their financial circumstances to ensure it is affordable for them .
For example , everyone entering residential aged care pays the basic daily fee of $ 58.98 per day , which is around 85 per cent of the standard full aged pension .
Then , consumers also may pay a means-tested fee and accommodation fee depending on their income and assets .
In 2020-21 , residents ’ contributions accounted for 27 per cent of total revenue in residential care , similar to figures since 2016-17 .
In the same period , home-care package recipients contributed 2.2 per cent of home-care provider revenue and home support service users 8.5 per cent of total expenditure .
“ It ’ s an inescapable fact that financial demands on the aged-care system will grow over the next 10 to 20 years ,” Mr Symondson said .
“ Pressure on the aged-care sector will only intensify with a rapidly ageing population .”
More than 4.1 million Australians are aged 65 and above , comprising nearly 16 per cent of the total population , and the percentage is growing .
Projections indicate that in 2057 this figure will surge to 8.8 million people , representing 22 per cent of the population .
By 2097 , one in four Australians will be aged 65 and above , reaching a substantial count of 12.8 million people .
Meanwhile , older Australians hold a significant share of the nation ’ s wealth , with the average household net worth surpassing $ 1m .
At the same time , the majority will die with the bulk of their retirement wealth untouched .
Australian aged-care software provider CompliSpace chief David Griffiths said the aged-care funding crisis was reaching ‘ its tipping point .’
“ There are limits to how much taxpayers can provide to support older Australians who can fund their care ,” Mr Griffiths said .
“ Co-contribution models are a way to make that possible and save aged care from becoming an unsustainable industry that fails older Australians .” ■

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