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.

 

[Reet]

This attitude is not fair at all. Having contributed to the pension scheme whilst working we are entitled to the benefits as pensioners and the superannuation is a benefit we have paid for ourselves to help cover other expenses. I don't know where the idea comes from that older people will have more money to use later in life. I have no extra money and with extra medical expenses to be paid from what is left of my superannuation this is dwindling fast.

 

[Reet]

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.

How many of those jobs are allowing women to do them? When I was working I put in many hours overtime without being paid for it so don't class every job done by women by your standards.

 

[wiskers50]

Well said Bill Mcl but I have to say, Alboneasy isn't a c--t, because they are useful

Airbus Albo is called Ankles,he is 3ft lower than a c--t

 

[LeahI]

Airbus Albo is called Ankles,he is 3ft lower than a c--t

Well better than being an a'hole like Scotty scumbag.

 

[Bayview232$]

I am one the baby boomers. My husband never got to retirement age. He worked all his life, now his family are using his super to try to make it more comfortable to work towards being debt free so being able to survive on the pension when the time comes.The government forgets we didn’t start super until we got older. So we have very little in our accounts when the time comes which it is 3 years away. The government keeps moving the post of the age that we can retire. Why don’t the government stop putting the age up until we can retire and getting the young people that are on the dole and put them into skills workmen ships. As we will not have enough builders, plumbers, electricians and any other skilled jobs that no one wants to get their hands dirty or work outside in our environment. We will be all better off in long run. The government do not have to worry about how are they going to mange in retirement, as they have our taxes to survive on the rest of their lives. Even when they have not been in office for not many years. Example people that have worked very hard all their lives just to put food on the table. Australia’s future is looking very bleak for our children now and into the future. We don’t have any one to blame but humans themselves. We are getting too greedy. Forgetting to crawl before we can walk like our ancestors before us. I am not talking about natural disasters. We cannot control them from happening. All I am saying the Earth can only take so much.

 

[Gryphen]

I just wish that the government (either side) would recognise that Superannuation is NOT their money to touch, yes they can use it to invest, but they have to pay it back, and for once and for all STOP changing the rules. Every year it seems they alter the regulations covering Superannuation.

I would also point out that if I were to move into care, I'd have to sell my house to pay for it, and if you are unlucky and make poor choices in that process, when you move into High-Care you pay even more.

Care and High-Care are already growth industries, and most organisations aren't in it to be kind, they are in it for the profit.

 

[Scaveola]

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.

How do you then explain the fact that women doctors earn less than men allowing for the same hours worked. Even in specialities like surgery?

 

[Crystal Flair]

Why do they still talk of 65 being age pension age when we know it is currently 67 and probably will go up again. “Most age care facilities running at a loss”, let’s see the stats on this and the why if they are running at a loss.
I know the complex my parents were at years ago is spending up big on upgrades, doing this probably makes it look like a loss.

 

[sandrag1]

No way! Ones hard earned superannuation is for the person to use as they see fit, end of story. The govt mismanaging our taxes is one thing, but our Superannuation does not belong to them to change rules, tax and mismanage! It's about time they stop interfering in people's financial affairs and stop robbing us!

 

[Gloria Mac]

I planned my retirement or so I thought, using my super as an extra to a very small Government part pension. I worked til I was 73 so I could do that. The Government changed the rules so I was only on a part pension for 2 1/2 months. Now I’m having to self fund myself all from my super. Why didn’t I retire as I could’ve done at 63 and take money from the Government? Now they are changing the rules again! No-one can plan for their future. Why can’t we all be on a pension like in New Zealand and the UK? I know people getting the Australian, UK, New Zealand and Dutch pensions yet I receive no pension having worked since I was 15. I’m now 80.

 

[Beak]

Hi well another trick to allow Govt to waste more money, they should review some european countries Sweeden Norway , and others, its ok if your super is $30.00 to $1.00, have all the other benifits of the well paid public servants, but for people who have worked in own business or small wages this sounds like bad news A typical way of Govt reducing responsibilities for giving back to thepeople who have helped build this great country. Winston Churchhill said, if the Govt offers you $2.00 they have already taken $4.00, so true. Thankyou for some interesting articles

I 100% agree with you.

Neither do they!

I agree because next year they're change they minds & change it again because the wealthy will complain that they are paying to much for Age care then everyone else like they always do. Here we go again groundhog Day.

 

[Milica]

They have just given a long awaited pay rise to the aged care workers, well and truly long overdue, considering the work they do and always short staffed and now they want that money back! They have no idea and never will because they will never be in the same financial position as the person on an age pension as their sole income.

 

[Reet]

I planned my retirement or so I thought, using my super as an extra to a very small Government part pension. I worked til I was 73 so I could do that. The Government changed the rules so I was only on a part pension for 2 1/2 months. Now I’m having to self fund myself all from my super. Why didn’t I retire as I could’ve done at 63 and take money from the Government? Now they are changing the rules again! No-one can plan for their future. Why can’t we all be on a pension like in New Zealand and the UK? I know people getting the Australian, UK, New Zealand and Dutch pensions yet I receive no pension having worked since I was 15. I’m now 80.

Don't know if you realise but if you receive a pension from another country like UK and declare it (as I did) they then take away some of the pension which you paid taxes to collect in Australia. The UK pension does not increase ever unless you live in a country which is not a Commonwealth country. Thus you are getting penalised for having worked hard all your life. I know of people who get a UK pension and have not declared it so are getting the full Australian pension in addition to their UK pension.

 

[Maurie7]

Catholic health? Maybe if the Catholic church paid taxes they could look after their own.

 

[Da Freddo]

AS ABOVE..
TO MY PREVIOUS REPLY.
PAGE 3.

 

[gone bowling]

I worked hard and went without so I could put extra money into my superannuation to fund my own retirement and not be a burden on social security. I went without expensive holidays and cars; live in a small place (not a McMansion with lots of empty rooms); and I live rather frugally (but I am happy). Now the expectation is to charge me for aged care if and when I need it?

Those on pensions will receive their care for free. I know, I worked in the sector for the past 20 years and aged care facilities had to have concessional beds for pensioners, many who have worked and managed to spend their money and not put any away to self-fund their retirement. Those who have assets now have to pay a RAD for a bed in an aged care facility. I'd like a bed in a $1,000,000 RAD facility please, but I know I can't afford that. A concessional person will get my bed for free.

Life is about choices and for those who chose to spend all their money should not be the only ones to receive free aged care. Our society is very ageist. If you have a disability, you can seek NDIS funding to live in your own home, or at least in a lovely 4 bedroom home shared with a couple of others, many with 24 hours support. If you are over 65 and need care, the ACAT system takes so long to provide a few miserable hours per week, if you are lucky enough to live in your own home, then you need to move into an institution. I thought we got rid of institutionalisation many years ago for those with disabilities and with mental health issues. So why do we expect aged people to live in institutions? Why can't older people live in suburban houses too, albeit sharing with a couple of other people?

So no. Until we address how poorly we treat our older adults, I will not agree to pay for my own aged care in my own home or in an institution.

 

[teasea]

This is just a thought but how about not sending taxpayers money overseas to support conflict in countries that are not even our neighbors and giving more relief to the crisis we are going through now in Australia,I have not worked for 55 years to have my taxes given to other countries and a referendum and not be supporting our own country,over 1 billion dollars have been given away for no result with our crisis with housing,power,food,insurance,petrol and diesel,and inflation that the Albosleezy government could not control,Labor federal and state governments are an absolute disgrace

 

[Robbo3006]

With the level of ignorance you are displaying I don't think that should be trusted with crayons. You are too far gone to ever wake up to reality so you stick your head in the sand and believe whatever you believe. This means that you are part of the problem. I know that I am on the right side of history. My only fear is that those of us that are awake will be dragged down by all the sheeple, like you, who will have to explain to your grandkids that you knew that something was no quite right but you didn't bother to do anything. Evil flourishes when people stand by and do nothing.
Be content in your ignorance until the day they come for you. By that time you will probably be dead from the Covaids shots you wilfully subjected yourself to and be one of the suddenly dead and the doctors will be baffled. There are none so blind that will not see.

Evil flourished when Hamas was created and was let off the chain by morons like you, crayons are for drawing not eating, think about the right side of history like people did in Poland etc, when idiots like you murdered 6 million Jews, but I bet you didn't believe that happened, brain-dead Neanderthal.

 

[JedCorella]

Evil flourished when Hamas was created and was let off the chain by morons like you, crayons are for drawing not eating, think about the right side of history like people did in Poland etc, when idiots like you murdered 6 million Jews, but I bet you didn't believe that happened, brain-dead Neanderthal.

You are proving to all and sundry that you don't have two neurones to rub together. You stay in you blinkered little world and soon, I hope, you will die from all the jabs that you took because people like you are the reason why the world is so F****D up!!
I hope you don't have any kids as the world does not need people in the gene pool that are mentally incapable of looking at all sides of the story. You are just the blind moron that follows whatever the trend is. If you live long enough, hopefully you won't, you might see that you were wrong all this time. Just keep drinking the kool aid and taking your mandated jabes and soon enough the world will be rid of you.

 

[JedCorella]

Why do they still talk of 65 being age pension age when we know it is currently 67 and probably will go up again. “Most age care facilities running at a loss”, let’s see the stats on this and the why if they are running at a loss.
I know the complex my parents were at years ago is spending up big on upgrades, doing this probably makes it look like a loss.

They don't run at a loss. I had my mum at an aged care facility and they overpaid management and underpaid the staff on the floor. Their charges were outrageous and couldn't be justified. The whole industry is a scam designed to fleece the elderly and their families while crying poor.