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.

 

[Les Brett]

Just another tax on older Australians that have gone without and saved all there life. We were urged to save for our retirement in our younger years. "There would be no pensions" we were told, what a HOAX. Better to age and retire with nothing, then the government gives you everything, better to arrive as a refugee, the government gives you everything. This country is fast becoming a welfare country paid for by our generation who worked hard, went without and saved. No rewards or benefits for us. Perhaps we need to adopt the same level of self entitlement as the younger generation seem to have. Cut back on welfare for all.
Psalms 37:11 — “But the meek shall inherit the earth; and shall delight themselves in abundance.

 

[Yves Altana]

You hear all the time about budget surplus, how can you have budget surplus when the health system is falling apart and elderly people are over looked? And yet they have millions of dollars to send to the corrupted ukrainian government!

 

[atomace]

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

Norway and Sweden, looks good but you are taxed to the enth degree

 

[atomace]

Just another tax on older Australians that have gone without and saved all there life. We were urged to save for our retirement in our younger years. "There would be no pensions" we were told, what a HOAX. Better to age and retire with nothing, then the government gives you everything, better to arrive as a refugee, the government gives you everything. This country is fast becoming a welfare country paid for by our generation who worked hard, went without and saved. No rewards or benefits for us. Perhaps we need to adopt the same level of self entitlement as the younger generation seem to have. Cut back on welfare for all.
Psalms 37:11 — “But the meek shall inherit the earth; and shall delight themselves in abundance.

So called refugees get nearly double what the Pensions is

 

[Southmelbswans]

All Care Homes charge different rates depending on how much you can afford to pay on entry. The rest is subject to Centrelink determining how much you will pay after the entry fee (if you can afford to pay it)!!!! If you can pay say $300,000 you will pay a much smaller fortnightly fee than someone who does not have the wherewithall to make a large entry fee that is actually returned to your estate when you depart this mortal world. There are always pros and cons

 

[Rob44]

When aged-care is used to support shareholders and CEOS and Boards of Directors it is in completely the wrong hands, whether funded by government or not.

When the State of Tasmania decides to spend $750 000 000 of OUR money on an AFL stadium for "footie" fans, not to mention the additional funds that will be needed to build support for the footie tourists from the mainland, then there is plenty of money to build a completely new public hospital amidst the rapidly growing suburban sprawl on Hobart's eastern shore.

I believe that $240 000 000 of OUR taxpayers' money has been committed by the Federal ALP as part of the Tasmanian Liberals' rort for the AFL. No doubt some Tasmanian Liberal politicians are looking forward to jobs as Directors of the Tasmanian AFL.

 

[marni]

So now they encourage to downsize and allow each person to contribute $300,000 towards super. Then they try this crap and take it from you - so your home will pay for your aged care . Don’t fall for yet another government scam. Keep your house it’s still not counted. Most nursing homes already charge the better off more to r ter and higher accommodation fees. The self funded retirees are discriminated against for being frugal all their lives. We do not pension, rental assistance and you have to pay for gardeners and cleaners whilst next door on their pension gets these at a very reduced price. They are receiving meals at $2 per meal as we manoeuvre the cost of living. I will tell the kids to spend it all as it will be taken away at the whim of the government

 

[Face-to-face]

This news does not surprise me. From the day it was introduced I suspected this would happen. I have enjoyed my super giving me happy retirement. I will die a very happy woman

 

[IAN3005]

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.

Yeah ..... right..... Pigs might fly.....

 

[lovie dovie]

I agree with most of the comments, I'm 77yrs ,Super wasn't in until the last couple of years before we retired, I worked 4 yrs. after retirement age, my husband worked 2 jobs, i went back to work when my kids were in their teens, we went without a lot to buy our 1st home , I was talking to a Neighbours 21yrs old , she said she goes to clubs, buys coffee and lunch every day, Shes saving to travel . $$$$$$$, not interested in saving for a home.
I often wonder what will happen in the future in regard to Government handouts, and how the next generation is going to live the lifestyle they live now. Look how much the Government will have to spend on Pensions for these people,
I also know of someone who has children just to get the benefits. all they say is they don't know who their father is, quite often their living under the same roof. Taking the taxpayers money and not giving a Damm.

 

[Ellev]

Who has much super anyway. Like somebody said before it started in the middle of my lifetime as well.
Now nearly every job I apply for in my industry is casual.

 

[Tamaya]

The goverment can stay the hell away from my superannuation i earnt it and I will use it as I see fit .....damn socicilist!

Couldn’t agree more. In fact I took my super out in full a few years back. Therefore from me the gov has nothing to take away. I can see it coming that there will be many retired people soon running and do the same and put the money elsewhere. Something else: retirees may be planning to leave the money there until they pass so the children can inherit. What then

 

[Pauline M]

Back t o the future: remember when a past Commwealth Govt introduced the rule that entering an aged care facility required the surrender by the prospective candidate of their home? The eventual financial scandal forced the swift abandonment of the rule, but not soon enough to prevent enormous family hardship to many and a family business empire that benefitted!

 

[teasea]

My mother is in aged care,she is 96 years old,she did not have superannuation but had to sell her home to pay bond in Aged Care facility,she was means and asset tested by Centrelink and lost half her pension payments and pays an extra $500 per month to have the same food and facilities and care as the ones living there only on a pension,looking at my mothers situation I cannot see how Aged Care Facilities are losing money when they earn interest on the bond money or charge the others interest to live there,definately does not pay to get old with the Ablosleezy government ruining our country and lifestyle

 

[I'm Mal]

The Hon Scott Morrison warned that albasleasey would come after our superannuation and it looks like that along with most of his other warnings are proving to be right. If liebour stopped giving away A$billions to their overseas mates and stopped blaming The Morrison Liberal Government for expenditure which actually saved the country's economy during Covid, there would not be this artificial need to continually rob Peter to pay Paul. On the one hand chalmless says that liebour has brought the budget back but they are still wasting money and crying poor. They lie about a trillion dollar debt but they could not possibly have recovered from that in two years.

 

[Da Freddo]

It is an employer's responsibility to hire and fire. If they do not want to hire a woman who might be willing to work in a particular job don't be so critical of women, it is not necessarily her at fault.

Most women struggle to bring up their children AND hold down jobs. Men seem to think women have babies by some stroke of a miracle. No, it is a two person act that produces children - not just by the act of a woman. Or haven't you discovered that yet? Get your head out of the sand and accept what happens in this scenario and stop looking down at women, many of whom struggle with important things in life - jobs, running a home AND having and bringing up children all at the same time.

I agree 100% with CATHERINES
I have personally trained 2 female apprentices in the manly art of boilermaking.
Had the honour of working with a top flyte female supervisor in my team, who was SACKED for remonstrating a fellow worker {male} for not following procedures.
So please stop the crap about females, you don't know what you are waffling on about !!

 

[Da Freddo]

It is an employer's responsibility to hire and fire. If they do not want to hire a woman who might be willing to work in a particular job don't be so critical of women, it is not necessarily her at fault.

Most women struggle to bring up their children AND hold down jobs. Men seem to think women have babies by some stroke of a miracle. No, it is a two person act that produces children - not just by the act of a woman. Or haven't you discovered that yet? Get your head out of the sand and accept what happens in this scenario and stop looking down at women, many of whom struggle with important things in life - jobs, running a home AND having and bringing up children all at the same time.

 

[lovie dovie]

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.

Jed, you sound like you've got a chip on your shoulders. you must look at very few women, my best friend's daughter is a truck driver at the mines, my granddaughter is an electrician, and another granddaughter works in a shop like Repco she also has her forklift license. they work darn hard, then collect their children from care, come home get dinner, do housework, washing, take their children to sporting events and training, while their husband comes home has a shower and watches tv with a beer in their hand such a tough day behind a computer, gets dinner served to them, also my Neice volunteers for the SES.
They pay their taxes like men do, can do the same jobs as men. with less money in their pocket.

 

[arthur dagger]

If those politician flying on private jets around Australia would take commercial planes the goverment would have plenty more money to put in age care.

 

[[email protected].]

good on you, you are so good to your workers are you giving up anything,ha ha.