For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

 

[Suzanne rose]

Really? you must be sooo young. That's what we were doing many years ago paying taxes toward aged care/ retirement until a Labor Government decided to grab the money for other purposes, so they invented super to take it's place.... Labor in again and want to now steal that money! So typical and the people who earn and save for their retirement are paying for those who don't!

When was this , I'm 61

 

[Cameron Sutherland]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

Our superannuation is our money that we have saved over our working careers and we should not be told or forced to spend it where we don’t want to. What if we die before being able to use aged care?
Cameron

 

[KSS]

Beyond the necessities for life (food, accommodation, clothing) I believe that CITIZENS of Australia should be entitled to two things provided by the Government: The first is comprehensive education at least to first degree level. Education is the only way to change personal circumstances. The second is healthcare and healthcare from cradle to grave including dental and other allied health services. Health is key to a productive life at every stage and should not depend on your postcode or age. If we can afford to provide full services to very preterm babies, we can afford the same level of services to age care.

Of course, these two things take high investment but if a Government is not willing to invest in its CITIZENS, then who will it invest in? Neither education nor healthcare should be reliant on your bank balance but both should be freely available according to need. Of course, people should have the option to pay for alternative services but then they should pay the true cost of those services beyond those provided by the 'state'. And the use of 'CITIZEN' was deliberate! Other residents have not made a commitment to Australia and therefore should not have the same benefits due to it's citizens.

 

[Brian R]

I don't understand how we are in so much debt yet they do keep giving our money away overseas.
I was always told Charity begins at home.
Not sure our government has ever heard of that

 

[Cacou]

Disgusting ,I earned that money with a lot blood ,sweat and tears ,live it alone !My wife raised 3 children ,if I die tomorrow she has no income ,don’t touch my super .Labor is once again showing how they lie to the people to get in power and rip us off !

 

[Brian R]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposahare your opinions with us in the comments below

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

Super was created because the government of the day said they could not afford to pay us baby boomers a pension (basic truth) So one way or another we had to forefeit a portion of our earnings to cover our retirement. So we have saved the government some funds. How we use our Super should be OUR choice and certainly not to help finance age care Centres that in most cases are a business. The standard of care has been under standard and they have been told to lift their game thats their problem not for the boomers to get them out of the S*&t.

 

[mikydrip]

Your superannuation was paid by your employer, not by you. Don't distort the truth, and the original retirement fund was raided by the libs not labor. It's true that super was introduced because a future government would be not able to afford the age pension as there would be so many age pensioners and not enough tax payers. The superannuation policy is great, you don't contribute unless you want to and people will retire with a sizable lump sum with which they can invest or buy annuities etc. and live very comfortably. If the lib's hadn't stolen the money from the original retirement fund we would all be living comfortably.

 

[Lynjw]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

I’m set to retire in next yr. When is this due to be instigated. Maybe j should pull my money out now.

 

[Dolores230]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

i think this is another grab by the government it was set up so we would not have to rely on the.

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments belowi

 

[Shaza]

How about limiting the amount private facilities profit margins and ensure a set percentage goes into the actual home and not owners pockets

 

[Dolores230]

They just want to grab easy money, super was for retirement so we would not have to rely on the age pension, they cannot keep changing the rules, why don‘t the government tax the multi millionaires extra tax instead of making the battlers always have to give.

 

[DGig]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

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The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

I think the government can't help themselves to take away from the super money pot

 

[Mina vriesekolk]

I live from my Super as I am a self funded retiree and I paid a lot of extra money into my super , so I can live a comfortable retirement .
Now Albo and his Labour Party want us to pay tax over it .It is our money .
I don’t get a pension . Most countries like NZ , UK and most European countries get an old age pension , no matter what you have in your bank account , every single person get an old age pension.
So stay off our Super and save some money by stop traveling the world . Spend our tax money wisely , like most of us do.
Now we are all in this mess due to all the Labour voters and for me there will be a big NO on the Voice referendum.

 

[mylittletibbies]

What a lot of whinging, narrow minded, miss informed people. If you have a roof over your head, have enough to eat and have a Medicare card, you are amongst the few very lucky people in the world.

It had nothing to do with luck that I have a roof over my head, I worked all my life for that, and I didn't get any first home buyers grants. The same as most people my age.
I paid into the pension fund my whole life, through my taxes, so I don't feel that I am lucky to have food to eat either.
It is irrelevant really which political party rorted the pension fund money, it is gone, but that does not mean that we didn't pay into it and it is our right to expect to get it back in the form of a pension as that is what that tax levy was for.
We also pay a levy for Medicare.
I can only think that you mustn't have paid much tax in your life if you think we should consider ourselves lucky to receive back what we paid for.
Employers are now expected to pay for our superannuation because the govt are worried about how they are going to pay pensions in the future and now they want to put their sticky fingers in that.

 

[mylittletibbies]

One of the major problems with aged care is the amount the owners of these places skim off the top and that is why they are so poorly run.
Many years ago I worked as secretary to the Nursing Unit Manager at the Kalgoorlie Nursing Home.
Every night when I went home my clothes stunk from the smell of urine in the air at the home, but when the owner was coming (,flying up in his private plane)we had to run out and buy multiple cans of air freshner so as not to offend his sensitive nostrils
On Thursdays I would start work at 6am in order to get the pays, etc done on time as there was not enough hours allotted for the job, the same with the people working in the laundry, but none of us ever got paid for these extra hours.
The food was disgusting. It is no wonder they couldn't keep staff.
I have a friend who works part time in a nursing home and she says things aren't much better these days .In saying that though I have a family member in aged care and the nursing home he is in is excellent, so not all the same.
I do not believe that there should be an inheritance tax. If you have money you have to pay in a nursing home anyway, what is left is yours and should go to whoever you nominate and not taken by the govt to fund those who do not have funds of their own.

 

[Maggie53]

For decades, the term 'retirement' has always been linked with 'superannuation'. Superannuation funds, commonly known as 'super', have been a reliable source of financial support for older Australians during their golden years.

But now, a major change on the horizon could completely reshape the world of superannuation as we know it. This change has the potential to significantly alter how retirees use their savings, marking a monumental shift in the retirement landscape.

The aged care sector in Australia is facing a funding crisis, and the peak advocacy group for the sector, the Aged and Community Care Providers Association (ACCPA), has put forth some potential solutions.

They recently released an issues paper at a national summit, suggesting two main alternatives to address the funding shortfall.

View attachment 26673

Older Aussies could soon be forced to use their superannuation for aged care or pay an inheritance tax on their estate under a radical proposal put to the federal government. Credit: Shutterstock.

Firstly, they proposed that Australians could consider setting aside some of their superannuation savings to improve the standards in aged care. The superannuation system, with a value of $3.5 trillion, could play a part in addressing the funding gap.

By allocating a portion of people's superannuation funds specifically for aged care costs, there could be a way to bolster the funding available for this critical sector.

Secondly, the ACCPA discussed possibly implementing a new social insurance scheme or a Medicare-style levy. These alternatives could help bridge the financial gap and ensure adequate funding for aged care services.

These suggestions come in the wake of distressing revelations about the neglect of elderly Australians that came to light during the 2021 aged care royal commission.

The aged care sector's challenges are complex and multi-faceted, including insufficient funding and an aging population. The recent federal budget revealed that aged care costs for the coming financial year had increased significantly due to recommendations made by the royal commission.

Despite the increase in funding, the sector's allocation remains relatively low, with federal aged care funding accounting for only 1.2 per cent of the country's GDP, well below the OECD average of 2.5 per cent. However, there are plans to further increase funding for the sector, with projections indicating it will reach nearly $40 billion by the fiscal year 2026-27, including funds for a 15 per cent pay rise for aged care workers over the next four years.

While the federal government will continue to be the primary source of funding, the ACCPA's proposal to utilise a portion of superannuation savings could be one way to address the ongoing funding crisis and improve the quality of care for elderly Australians.

According to ACCPA's CEO Tom Symondson, the superannuation system aims to ensure financial independence for people during retirement by providing a source of income.

However, the system faces an issue where superannuation savings are sometimes passed on as inheritance instead of being used for aged care services, contrary to its intended purpose.

'We want to see a system that encourages the use of superannuation as it was intended,' he explained.

In 2021, the Productivity Commission released a research paper predicting that approximately $3.5 trillion in assets would change hands in Australia by the middle of the century, with the superannuation system playing a crucial role in this wealth transfer.

View attachment 26708​

The issues paper proposes the implementation of an inheritance tax on a deceased estate if the funds from 'superannuation' are not used as intended for retirement—even though Australia abolished inheritance taxes in July 1979, following Queensland's National Party premier Joh Bjelke-Petersen's efforts to eliminate death duties.

Under this proposal, wealthier retirees may also be required to contribute additional funds to their superannuation to cover their aged care expenses, despite the recent increase in compulsory employer contributions to 11 per cent on July 1.

Key Takeaways

• The Aged and Community Care Providers Association (ACCPA) has proposed that some of Australians' superannuation savings should be set aside to help improve standards in aged care and address the sector's funding shortages.
• The ACCPA has revealed harrowing details of neglect towards elderly Australians in the 2021 Aged Care Royal Commission and claims the funding problems will be further exacerbated as Australia's population ages.
• ACCPA CEO Tom Symondson noted that superannuation savings are frequently passed on as inheritance rather than paying for aged care services. The executive called for a system where superannuation is used as it was intended.

Members, what are your thoughts on these proposals? Share your opinions with us in the comments below.

Not pleased. I become anxious whenever there is chatter about tampering with superannuatio.

 

[Hyacyinth Bucket]

could not agree more. I am nearly 75 and worked all my life (except for 2 years when I had my son). I only have half the super quoted??

Women are disadvantaged straight from start. Lower income/having children/time of work to care for children/ GFC. Iv got 6mths to go I’m pulling all my super before govt gets their hands on it.

 

[p&rtogether]

NO ONE WILL EVER VOTE FOR LABOR IF YOU F--K OUR SUPER UP. DO YOUR JOB PROPERLY, STOP GIVING MONEY AWAY (FOREIGN AID, SELLING OUR LAND TO FOREIGNERS) AND TO LAZY PEOPLE WHO WON'T DO MENIAL JOBS. NOT EVERYONE CAN HAVE THE PERFECT JOB OR THE BIGGEST AND BEST HOUSE, CAR OR APPLIANCE. PEOPLE NEED TO LEARN TO LIVE WITHIN THEIR MEANS AND NOT WANT EVERYTHING INSTANTLY. WE LIVE IN THE BEST COUNTRY ON EARTH BUT GREED IS STUFFING IT UP.

Totally agree

 

[p&rtogether]

Mine do too.

mine do as well

 

[Pat T]

Women are disadvantaged straight from start. Lower income/having children/time of work to care for children/ GFC. Iv got 6mths to go I’m pulling all my super before govt gets their hands on it.

We did. We split it into three or four separate lots, putting it into term deposits for 3-6 months depending on rates. Been doing it for over 10 years.