The Australian government is considering a radical overhaul of the superannuation system.

A new proposal from the government suggested that retirees' super funds could be used to cover their aged care expenses.

This move is aimed at easing the financial burden on the Commonwealth's budget and ensuring the sustainability of the aged care sector without introducing new taxes.

The proposal is based on a government-commissioned report by the Aged Care Task Force, which indicated that due to the superannuation system, future retirees are likely to be wealthier than previous generations.

'Over the next 20 years, the number of people with superannuation balances at age 85 will grow considerably, with a greater proportion of people having significant funds available,' the report read.

The government has proposed a radical overhaul of the superannuation system. Image source: Shutterstock.

The report suggested that these funds could be better utilised to support individuals' health and aged care costs in retirement.

This shift in policy could have significant implications for Australians planning for retirement.

The task force's findings show that the proportion of people over 65 relying on the aged pension or other income support is projected to decrease by 15 percentage points by the early 2060s, thanks to the growth in superannuation and assets.

Prime Minister Anthony Albanese has emphasised that the proposal is not intended to penalise hard-working Australians but to create a more sustainable system for the future.

'We'll consider the recommendations, we know that it is a difficult time for people when you have a loved one who requires care who's unable to continue to live at home,' he said.

The report also highlighted the need for the Commonwealth to maintain a significant role in funding aged care services.

It also recommended a robust safety net for those with limited means to meet their costs.

Catholic Health Australia has urged the government to act quickly on the report's recommendations, pointing out the financial strain on most aged care providers and the necessity for responsible reforms to ensure continued investment and quality care.

'With most aged care providers running at a loss, these sensible and responsible reforms are urgently needed so they can continue to invest and provide quality care for all Australians,' CEO Jason Kara said.

'The fairest way to deliver extra funding is to ask people who can afford it to contribute more for their accommodation and living expenses, costs they have covered over their adult lives.'

The Council on the Ageing Australia has also called for ambitious action to address the challenges posed by an ageing population and the growing complexity of aged care needs.

'The conversation about the long-term financial sustainability of aged care is a crucial one, and one which we can't afford to shy away from,' CEO Patricia Sparrow said.

The task force, led by minister Anika Wells, put forward 23 recommendations, all of which are currently under government review.

Key Takeaways

• The government has recently proposed the use of Australians’ superannuation to fund aged care costs to ease the financial pressure on the Commonwealth.
• The government has ruled out introducing a new levy or tax to fund the aged care sector.
• The Aged Care Task Force report indicated that the proportion of people over 65 relying on the aged pension is expected to decline, in part due to better superannuation and asset ownership.
• Prime Minister Anthony Albanese asserted that using superannuation for aged care will make the system sustainable, as the report called for the government to continue playing a significant role in funding aged care services.

Members, what are your thoughts on using superannuation to fund aged care? How do you believe these changes could affect Aussies’ retirement plans? Share your thoughts with us in the comments below.

 

[workshopwarren]

This is exactly what super is meant to pay for, YOUR retirement and YOUR AGED CARE, not to be passed on to young people, they will have a lot more super than you have got.

If everyone paid for their their own live choices, including aged care, young people would not be stuck with higher taxes trying to pay to keep you in an aged care facility. The super you are not sending, which you have been given tax advantages to save, is not to pay for someone's life choices, but YOURS.

When you die your super balance should be zero, because you have spent it all paying you own way.

The government only should provide a safety net for those who stuff it up and live longer then their super savings can provide funds for.

This number will become smaller over time as people realise super is the way to a good retirement and aged care of your choice, and put more money into super

 

[gordon1940]

It is great to see so many opinions and complaints on this platform. I agree with most of them but PLEASE don't forget to include your Local Member. Involve them with our day to day problems and always ask for their views. Make them GOTA!

 

[Babbie]

There is an election next year. Hopefully Dutton will be against this move. One reason why Billy boy Shorten lost was because of the pensioners tax he wanted to introduce. This lastest move appears to be much bigger and will worry many retirees.

 

[RealityCheck]

You can't take it with you, so why not pay something if the result is improved care and conditions?

The whole purpose of super was to spend it when you're aged.

 

[Miss Chris]

What a load of crap….Government have pounced on another way to filch money from people who are looking at a well deserved retirement and aged care available should they need it. Superannuation is a safety net for most people, an expectation that they deserve, have worked for and should be able to be used as seen fit. Now the government have got the nerve to tell us how to manage our superannuation so that they have more funds to use as THEY see fit and taking away our freedom of choice….So, by the 2060’s a lot of us will have passed away, but there will be others to take our place, and they will have to deal with issues that the government will throw at them….As it stands, the government seems to be taking control over us in much the same way as the banks are doing……..Perhaps by 2060’s when a certain age has been reached, we will be sent to live in government accommodation, fed by government employees, nursed by government appointed staff, taken out once a week for fresh air or entertainment……we won’t need any money anymore, the government having raised the taxes sky high and no need for a superannuation plan………..I think I might have gone a bit overboard there…

 

[relljube]

Perhaps we are going about this the wrong way. Instead of keeping our spending within reason so we can retire in comfort, maybe we should p--s our money up against the wall, spend it on cruises, buy a new car etc then when we are on the breadline, line up for our "free" handout of the pension. Albo is a mongrel liar - welcome to the world of Labor socialism - you get cut down at the knees for doing the right thing and saving. Pity I didn't spend my money on grog, ciggies and the odd cone - maybe I could then claim the "no hoper's benefit" from the Govt.

 

[Sue 4]

This is exactly what I have had to do for my husband just recently ! To get him in a place that I beleve he deserves ,after all the years he worked & saved for our retirement!it has taken three quarters of his super + some of our savings for a room !
yes the government will help with a means test assessment but it’s not going to help much I don’t think ! I’ll just have to wait & see !….

 

[Robbo3006]

They need our money because, even though the country is in an ever growing debt they keep borrowing and spending like drunken sailors. In real life you would be declared bankrupt and suffer the consequences of bad management. Take our money and spend it on refugee criminals and release them in society, send money to Ukraine and to the genocide that the jews are committing in Gaza.
As a "responsible" government shouldn't we be looking after our own first?

On point and I agree with everything except the Jew part, hamas asked for it, over 70% of Palestinians voted hamas into power, so they're all complicit with the crimes they commit, worldwide. It means 70% commit the atrocities and 30% quietly clap in private.

 

[Robbo3006]

Perhaps we are going about this the wrong way. Instead of keeping our spending within reason so we can retire in comfort, maybe we should p--s our money up against the wall, spend it on cruises, buy a new car etc then when we are on the breadline, line up for our "free" handout of the pension. Albo is a mongrel liar - welcome to the world of Labor socialism - you get cut down at the knees for doing the right thing and saving. Pity I didn't spend my money on grog, ciggies and the odd cone - maybe I could then claim the "no hoper's benefit" from the Govt.

So you consider disadvantaged people no hopers on benefits, wow, how unaustralian.

 

[Sej]

A good idea --but very important to know how this would work! Not everyone has a big super fund; and it is to be assumed that not ALL of peoples' super would be taken from them?

 

[JedCorella]

On point and I agree with everything except the Jew part, hamas asked for it, over 70% of Palestinians voted hamas into power, so they're all complicit with the crimes they commit, worldwide. It means 70% commit the atrocities and 30% quietly clap in private.

You are obviously falling for all the lies and propaganda that is put out by the lame stream media that is mostly owned by...jews. Every they tell you is backwards. How could the Palestinians have made that attack on Israhell when they have no planes and no airport to launch an attack. Look past the lies and look at the situation logically. All governments supporting Israhell are complicit in genocide and should be dealt with accordingly!

 

[Catherines]

Oh boy! Everyone seems to have a ‘correct & absolutely true’ assumption of who did what, which country/organisation is responsible for the trouble in our world today. Perhaps it is time each of you just sat down and asked your god - who ever he may be - to take care of the situation facing our world.

I’m not a ‘holy Joe’ by any means but I ask for peace in this world of ours even in our own daily doings/sayings. It saddens me to think so many of you/us have such hatred for others.

Just ask your own god for peace.

 

[Catherines]

Amazing the Catholics Health Australia are asking for the recommendations to be taken up well well isn't Rome flush with cash that could help Catholics in their aged-care that have put in the plate all their lives but no they hoard it away instead private sector chasing profit over care the then liberal government pumped millions in to private health care not the public sector and how many died because of COVID-19 in the private sector profits before care there

Do you actually know what that money (in Rome) is spent on, who it goes to & how much is given? I doubt very much that you do - in fact I guarantee that you don’t know!

 

[Lorri61]

Seems to me that it would be unfair, if you work hard and have super why should you pay for what a bludger gets for free? Will the government whip out a percentage of your super at the start so you can’t spend it?

 

[Robbo3006]

It's such a shame that you are so brow beaten by the bullshit that the jews are perpetuating. The rabid animals are the IDF which are trained jewish terrorists that are committing these atrocities. It's them who do this and film it, then post it as if it is the Palestinians doing it. There is plenty of vision out there to show what kind of low life scum is doing to women and children. The jews are the virus that has infected the world for centuries! Why do you think they've been kicked out of over 100 countries for their disgusting culture. I don't want to argue with you but please have a good look at history away from controlled media. Look at where all the porn originates from. WTF is circumcision all about except to inflict pain and terror on children?
If you want to see who is in control all you have to do is look at who you can't criticise because that is called anti semitism. I also now believe that the, so called, holocaust is a lie. It is perpetuated so the jews can cry victim whenever they commit a terrorist act. Case in point. The bombing of the Rainbow Warrior.

You are the one that's brainwashed. That's it, I can't be more honest and don't have enough crayons to explain it to you, hamas is an internationally recognised terrorist organisation.

 

[Robbo3006]

It's such a shame that you are so brow beaten by the bullshit that the jews are perpetuating. The rabid animals are the IDF which are trained jewish terrorists that are committing these atrocities. It's them who do this and film it, then post it as if it is the Palestinians doing it. There is plenty of vision out there to show what kind of low life scum is doing to women and children. The jews are the virus that has infected the world for centuries! Why do you think they've been kicked out of over 100 countries for their disgusting culture. I don't want to argue with you but please have a good look at history away from controlled media. Look at where all the porn originates from. WTF is circumcision all about except to inflict pain and terror on children?
If you want to see who is in control all you have to do is look at who you can't criticise because that is called anti semitism. I also now believe that the, so called, holocaust is a lie. It is perpetuated so the jews can cry victim whenever they commit a terrorist act. Case in point. The bombing of the Rainbow Warrior.

Lockerbie and Manchester bombings still come to mind.

 

[Buzzy]

I doubt this will apply to the huge amounts politicians get when they retire! The whole plan stinks - tax is already paid on Super before it's deducted from pay, so it's double-dipping already. Super is there so we retirees can have a reasonable lifestyle. It's ironic that medical costs are already part of that lifestyle! The pension isn't enough for prolonged medical issues. Wake up, you overpaid hypocritical mob!

 

[Janet Blythman]

It’s the same old story, you work & save hard for your retirement & and you get very little from the government & end up supporting people who for whatever reason rely on the government to support them. Self funded retirees again get a raw deal.

 

[LeahI]

Super is mandated by the government for employers to pay money to you.
You don't earn it. Your employer, big or small, all have to cough it up on your behalf.

 

[LeahI]

This wage disparity between men and women is a load of BS! Feminism has created so much friction between men and women and that is done on purpose.
Women, as a general rule, don't spend as many hours at work as men. It is a fact. I am sick and tired of women crying about inequality. Where are the women working in construction or as sewage workers? How many are climbing up electricity poles after a natural disasters? They just want the cushy office jobs just in case they might break a fingernail at a job that requires to get your hands dirty.
Don't cry inequality until you get off your collective arse and do the same jobs that men do. If you do as good a job as men you do deserve the same pay but not if you aren't capable but don't be part of a quota that employs because of your sex instead of your ability.
Men and women are build differently and just don't have the strength that men do. That is why they had to change the criteria for entering the armed forces, the police and firemen.

Omg chauvinism at its finest. You obviously spent too much time in the sun or in a sewer in your 'Manly' job.
Wage disparity happens in white collar jobs. The biggest problem is men and women who are doing the same work and not being paid the same. Like at a bank.
Go back under your hard rock and eat a beast.