Australians may have to contribute more for their aged care under reforms being considered by the federal government with a report on the issue expected to be released by Aged Care Minister Anika Wells as early as Tuesday.
Cost of aged care could soon rise in Australia as Labor weighs up lifting cap on refundable accomodation deposits
At present, there are two ways of paying for aged care in Australia – through a refundable accommodation deposit which averages $470,000 – which is paid to the home as an interest free loan and returned to the family once the elderly person has died, or through daily accommodation payments. Early statements around the report of the taskforce indicate the government will not go for an aged care levy, which has been a proposal in the past.
“The taskforce is closely considering system funding arrangements, noting the wealth of aged care participants is increasing while the proportion of working age people is shrinking,” an October statement from the taskforce said.