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.

 

[JG48]

So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the peoples money they stole ? Young people now have to pay for the pre Superannuation retirement, but only becayse the retirement savings have already been taken by Labor. Its not paying for, its paying back....

 

[one2one]

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. NO As not every has a large amount of super and for those of us who have very little super we just want it to make our final years a little more comfortable as our Pensions don’t and w9nt cover us i the future. So money gouging those who have worked hard ., and are now on the pension .

 

[DesertRose]

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 find this scary to think the Government are dictating one again on how and where our money is used. We've worked hard, added to super, drawn down via pension stream but might now be penalised for not using every cent of it before we pass. It's a guessing game how much super you'll need to carry you through to end of life. How is anyone to know that and why should any Government be able to further tax the left over? Is criminal.

 

[Roscobro]

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.

 

[Roscobro]

Leave our superannuation alone

 

[Januvia1952]

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.

The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.

 

[ABCCBA]

“According to ACCPA's CEO Tom Symondson, the superannuation system …..
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.”

Hmm.. since when was Supers’ intended purpose meant for aged care?

 

[Suzanne rose]

So let me understand , those who worked all their lives need to fund age care but those who haven't worked do not .
Not sure this is fair

Maybe they should add a small tax for workers that goes towards age care funding eg $5 a week
I'm not saying for your own but as a general age care fund .

Everyone will get old one day.

 

[kevinwoodtufftyke52@gmail]

Insread of relying on private run retirement centres where the owners are in it to make profits, maybe our superannuation funds could invest in building and running retirement centres for a small profit. Governments could also make all multinationals taxes and miners pay higher royalties on our minerals.

 

[Bill MacL]

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.

 

[Pat T]

A person works to live moderately. They are taxed. To hope to maybe have holidays when they retire they put a little extra away. Hang on- some people who have never worked (no time , too busy protesting, having kids , believe me I know quite a few), need a place- let the workers pay again, they can do without their holidays! How about a percentage of the politians and CEO salaries go into a special account for that purpose.

 

[Pat T]

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.

And stupidity.

 

[mylittletibbies]

So let me understand , those who worked all their lives need to fund age care but those who haven't worked do not .
Not sure this is fair

Maybe they should add a small tax for workers that goes towards age care funding eg $5 a week
I'm not saying for your own but as a general age care fund .

Everyone will get old one day.

The problem being that every time the govt put their hand up for more money from the people it ends up not being used for the purpose it was given.
The Labour Party drained all the pension fund and now complain about having to pay a reasonable living pension to us baby boomers who worked hard and pay taxes into this fund. Now they want to dip into our super which was set up to pay our pensions, which we had already been taxed for our whole working life, not our aged care.
So , let me get this, we will pay in more money and the powers that be will dip into this once again.
They seem to have enough money to pay for parental leave, subsidised child care, single mums pensions (which was not originally set up to pay young teenage girls who choose this as a life style, but as a safety net for women to be able to escape from abusive relationships etc) but to hell with the pensioners we don't have enough money for them, oh whoops that's because we already spent their money.
Where does it all end, how about all these wealthy fat cats in politics thinking about cutting back on some of their ridiculous perks instead.
Why are the young in our society getting all these benefits, none of which we ever got, but we are a burden on society because they mismanaged OUR money, which was meant to cover our old age.

 

[Kellettw]

Sadly, people no longer look after their elderly family Members, expecting the government to pay. Just not sure where people think the govt. money comes from in the first place. I have always said to my parents, spend your money, we don’t need it & you worked hard for what you have. I do think it will be harder my my children, but I they already say the same to me.

 

[Suzanne rose]

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.

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

 

[Chappy]

When are we going to stop being dictated to by the people we elected to represent us. Pensioners rights are being eroded to help pay for the promises made by government to their fatcat cronies.

 

[Pat T]

Sadly, people no longer look after their elderly family Members, expecting the government to pay. Just not sure where people think the govt. money comes from in the first place. I have always said to my parents, spend your money, we don’t need it & you worked hard for what you have. I do think it will be harder my my children, but I they already say the same to me.

Mine do too.

 

[Roscoe44]

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.

Blind Freddies dog could see 20 years ago that we are an ageing population, yet successive governments have done very little to address this problem. We are supposed to be living in a first world country but our politicians seem hell bent on wasting our money on other rubbish. Don't forget, it's our money Ralph, so hands off you greedy and inept poilticians and get your act in order. Our politicians seem to be falling in line for the New World Order and are completely disregarding us taxpayers who pay their wages.

 

[deb.acton]

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