'If there's not assets there then the Commonwealth pays, but it's a very nice way of working out what the Commonwealth should really pay vis-a-vis the residual assets of an aged person in superannuation or bricks and mortar assets etc,' says Paul Keating.
"We're not forcing anyone out of their home, we're not obliging aged persons to negatively mortgage their home, you're not asking families to chip in and pay for their relatives in their accommodation or their care, and so I think such a system has a lot of advantages," Mr Keating said.
"Basically it sounds like a universal unsecured loan and I'm not sure any government would be able to take that on," Mr Versteege said.But National Seniors Australia chief executive John McCallum said it would be a difficult sell to consumers, particularly because people did not view their homes as assets and wanted something to pass onto their children.
Only the first $170,000 of the value of a family home is included in the assets test for residential aged care and there is debate over whether the full value should be taken into account. When superannuation was first conceived in the late 1980s, there were 6.5 people between the ages of 15 and 65 supporting every one person above 65. There are now 3.7 people supporting every person over the age of 65 and the figure is predicted to fall to three by 2040.
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